One company the McNair Group backed many years ago was involved in DNA sequencing. The group invested $75,000, a miniscule investment by its standards. Within a couple of years, the owners sold the company and sent the group a check for $13 million on that long shot.
“They don’t all work out that way, but for that one we were wishing we had invested more,” Schwinger said.
A wealthy family or individual needs to have $500 million to $1 billion for a family office with the kind of staff that the McNair Group has, he said. “We do not have much turnover in staff, but when we bring someone in, that person needs to be like-minded. But we also want fresh ideas.”
The family also helped the city recover from Hurricane Harvey and has more new projects in the works, such as developing a residential facility for cancer patients and their families in conjunction with the American Cancer Society.
Doing the due diligence for investments McNair likes is often difficult, Schwinger acknowledged, but the investment committee tries to protect the investment money. For instance, the group has a doctor on staff to help advisors on medical investments.
“We look at the people involved when we do these investments and we look at the governance of the company. These are long-term investments and can take 10 or 15 years to develop, particularly ones involved with drug development,” Schwinger said. “But the development of these products and facilities can bring lots of talent to Houston” and have long-term impact on the future of medicine.
Many Americans, particularly millennials, have become skeptical of capitalism and whether it can have a good impact on the community, but according to Schwinger, “It takes a capitalistic mind-set to make the money that can then be used for good.”