Posts Tagged Erik Prince

Industry Talk: Prince Targets Aviation And Logistics In Africa

So is this Blackwater part 2?
“It’s similar,” Prince replied. “But we’re not here to serve government or defence projects, we’re not there to build their police force, nothing like that. We’re there to move an NGO, an advanced seismic crew or a drilling crew from a mining company, or if an oil operation needs their camp supported and built.”

The story of Erik Prince starting Frontier Resource Group and focusing on Africa is not new and I have blogged about that when it first came out. But what was missing were the details, or at least more than what was available at the time I posted that stuff. Thanks to the Civilian Warriors book and all the interviews, Prince has been able to talk a little more about this new venture.

So in the articles below, there are some great little details to pluck out and talk about. The first one that I thought was interesting, was the ‘a ha’ moment for Prince as to what area of business he wanted to get into in Africa.

Prince, who has flown since he was 16, said he realised the potential of operating a safe and reliable air service a year ago when the aircraft which was flying him back from a mine site in Burkina Faso nearly crashed.
“A scary moment but also one of clarity,” he said.

I mentioned in my review of his book that he is an entrepreneur and businessman, and he constantly looks at the world through this lens. His ‘a ha’ moment for the creation of Blackwater came from the realization that he needed to be home with his family, and the SEALs and other groups needed a consolidated, all in one training facility. So he identified a market weakness that he could exploit, and also saw the advantage for his personal well being.

He is also a pilot and has had a love for aircraft since he was younger. In his book, he was very proud of all the aviation ventures that BW got into, so this move towards aviation and logistics in Africa makes sense.

The other tidbit is the quote up top and what was directly asked in regards to security work. He was asked by the WSJ on whether this new venture would include armed security work or not? Here is the quote.

Such high costs also reflect the dangers of piracy and civil conflict, but Mr. Prince plays down his firm’s plans in the security realm. “We are not there to provide military training. We are not there to provide security per se. Most of that security”—say, if an oil pipeline or mining camp needs protection—”would be done by whatever local services are there,” including police and private firms. “We don’t envision setting up a whole bunch of local guard services around the continent.”
So the former Blackwater chief won’t employ guys with guns? Well, he says, “that would be the exception, certainly not the rule.”

I should remind the reader that Prince could easily contract the services of other security firms to help in security.  That would mean using Academi or any of the offshoots of his older company. But like he mentioned in the quote, using local police or security firms is more than likely the path, which is already what most Chinese investors and companies are doing.

Although the problem with this arrangement is if those local forces are dependable? Can they deliver services on time and under budget, or is it even a good service? Can they provide high level PSD services for the engineers and workers for those companies? That is where PMSC’s like Blackwater would come in. Also, someone needs to manage those local forces, or look out for the best interest of the client.

I am quickly reminded of the In Amenas gas plant attack in Algeria and how depending upon incompetent local security forces (provided by the government) was a contributing reason why the attack was so successful. You must have a competent security company watching over the local security force that companies are either forced to use, or use because of cost and choice. I look at it from a concentric rings of security view point, and your outer layer should be your least dependable force and your final ring of security should be your most dependable. Ideally all rings are dependable in a perfect world, but that just does not happen in the real world. Another way to put it, is you need security you can ‘trust’.

But back to the articles below, I think this quote speaks pretty loudly as to why dependable and highly capable services are in such high demand in Africa.

“If you’re drilling in some remote area and your rig goes down and you need a new part for your rig; that’s 10s if not 100s of thousands of dollars a day. How do you get that thing quickly and with no excuses?”

Time is money as they say, and guys like Prince can absolutely organize an effort to get that part or human out there.

This also reminds me of another potential problem for companies. What if their equipment gets caught up in a mess like what the Arab Spring has created in the Middle East? For that, a guy like Prince could organize the effort to secure equipment and people until it can be either flown out or convoyed out of that mess.  Those types of contracts remind me of what helped put Executive Outcomes on the map.

I am talking about the Ranger Oil contract that Executive Outcomes had in Angola. Basically things became unstable there and Heritage Oil and Gas turned to EO to save some equipment caught up in the mess. At the time, they were leasing some drilling equipment that was costing over $20,000 a day, and UNITA would not allow the company to get the equipment out of there. EO was contracted to secure that equipment, which they did.

It is also important to note that the Chinese account for the largest group of people kidnapped in Africa. I have talked about this demand for protective services by the Chinese in the past, and how the South African PMSC market has been filling that niche. Lot’s of money being spent on some risky projects–hence the need for security and folks who know what they are doing.

As long as we are talking about money, it is also interesting to pluck some of the quotes that discuss why Africa is so interesting to Prince. China is investing billions into development and resource extraction there.

Mr. Prince won’t share any revenue projections, but his prospectus notes that “China is Africa’s largest trading partner,” with annual flows of $125 billion. Most estimates put that figure closer to $200 billion, a meteoric increase from $10 billion in 2000 and $1 billion in 1980. The U.S., which was Africa’s top trade partner until 2009, registered $100 billion in annual African exchange at last count. China-Africa trade could reach $385 billion by 2015, according to Standard Chartered Bank.

Not only that, but the US is also delving more and more into Africa with it’s military ventures. So Prince is basically gunning to be the logistics and transportation ‘go to guy’ for Africa. If US strategy includes getting more involved with Africa, it will need companies in place that can provide a need wherever it presents itself.

Although he does have some competition, because there are numerous larger companies  that have already been working that angle in Africa. PMSC’s in Somalia and their support of AMISOM are one example. There is still room though, and investors are looking for folks that they trust can do the job. That is a key point here, because Prince has shown capability in the past by making things happen, and putting his money where his mouth is. He spent over 100 million on new products and services when he owned BW, and much of it never reached fruition. But some did, and really paid off for him. I imagine he will do the same with this company. This quote shows why investors would be drawn to him and what has provoked Prince to get into this market in the first place.

“As I was moving around Asia trying to raise money for this private equity fund, a lot of the big investors said, ‘It’s great that you want to be a fund manager, but what we really need you to do is to build a business like you had before. Not a defence services business, but one that can help us operate in the challenging areas and take away a lot of the uncertainty’.”

Pretty cool and I imagine he will apply the same mindset to this business as he did with BW. Research the region, find services that are lacking or non-existent but are needed, or see a coming need for a product or service, and create that service or product to meed those needs. That is how he built BW, and that is probably how he will build this company.

As to what kinds of aircraft he will purchase and bring to the market, who knows?  If you look at the aircraft that AAR has (former Presidential Airways and BW business unit), you can get an idea as to the kind of aircraft Prince might introduce into the game. Here is a quick run down from wikipedia as to what they have used.

Presidential operates CASA C-212 and CASA CN-235 turboprops. Recent contracts have added de Havilland Canada DHC-8 Dash 8 turboprop aircraft to the fleet. The company also operates turbine powered helicopters including Bell 214ST, Bell 412, MD Helicopters MD-530, Eurocopter/Aerospatiale SA 330J “Puma”, and Sikorsky S-61 rotorcraft.

The key for Prince is to invest in aircraft that can carry a lot, has robust fuel capacity, is durable, and can land on the really crappy air strips throughout Africa. The parts need to be cheap as well. I am sure he will find something that fits the bill. Either way, we will keep on eye on this. -Matt

Edit 04/02/2014: It looks like DVN (or it’s new name Frontier Services Group Limited) has acquired another percentage of an airline that operates out of Wilson Airport. Here is a clip from the news story about it.

News broke yesterday in Nairobi that DVN had apparently acquired a 49 percent stake in Phoenix Aviation which is based at Wilson Airport in Nairobi and engages in aircraft charters and aircraft maintenance, among other aviation services. First it was Kijipwa Aviation, based in Kilifi, a relatively small aviation company, in which DVN acquired a 49 percent stake in late February, then announcing that they were to bring on line as many as two dozen additional aircraft to boost the operational capacity of the firm. However, the acquisition of a similar share in Phoenix may change those plans as suggestions have been floated already among the aviation fraternity at Wilson Airport that the operations of the two local airlines may be consolidated or aligned under one umbrella or at least they will be working under one central command. While DVN reportedly dished out some 1.2 billion Kenya shillings to acquire the 49 percent stake in Phoenix, no confirmed value could be obtained for the acquisition of the Kijipwa shares. Both investments have been linked to the discovery of significant oil deposits in Kenya and the apparent need of international oil exploration companies to contract a range of services from local Kenyan companies, including aviation.

Frontier Resource Group website here.

Frontier Services Group website here.

 

 

Beyond Blackwater: Prince looks to resources in Africa
Photo
Sun, Feb 2 2014
By Stephen Eisenhammer
After running one of the world’s biggest and most controversial private military groups, Blackwater founder Erik Prince is starting a new venture providing logistics for oil and mining companies in remote and dangerous parts of Africa.
China is increasingly looking to Africa to meet its ever growing demand for natural resources. Trade between the two reached an estimated $200 billion (121 billion pounds) this year. With 85 percent of Chinese imports from the continent being oil or minerals, Prince sees an opportunity.
He wants to use his experience of getting people and equipment in and out of remote places, where there is little or no infrastructure, to help companies looking to exploit abundant natural resources in places like Sudan or Somalia.
The 44-year-old former U.S. Navy Seal became chairman of Frontier Services Group (FSG) this month, a Hong Kong-listed company of which China’s state-backed investment fund Citic owns 15 percent. Prince himself has share options in the firm that would convert to a 9 percent stake.

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Books: My Review Of Civilian Warriors

I finally got a chance to read this book and I was not disappointed. Much of the book went over material that I was already familiar with because I have been blogging about this industry for quite awhile now. But it is cool to finally hear Erik Prince’s version of events and his thoughts on the industry.

So what I did with the book is make footnotes on things that I thought were interesting that I was not aware of. Like did you know that the guy that threw a shoe at President Bush during a press meeting, was tackled by a Blackwater guy and not the Secret Service? Or that it was BW that rescued Vice President Joe Biden, Secretary of Defense Chuck Hagel and Secretary of State John Kerry on a snowy mountain top in Afghanistan? That is crazy, and it is stuff like that, that I will bring up in my notes. I will also mention the books that Prince was influenced by or thought important enough to mention in his book.

The first book mentioned by Prince that inspired him for building Blackwater was called Entrepreneurs Are Made, Not Born–By Lloyd Shefsky. Prince read this book while posted on the ship USS America, and the ideas that came from this book helped him to formulate a plan on what he wanted to do when got out of the Navy. He was a businessman/entrepreneur at heart, just like his father, and he wanted to be closer to his family–hence why he wanted out of the Navy. This is where he got the idea for building a world class training facility that could fill a need for the government, and especially his Navy SEALs, whom were constantly on the road for training. What Prince wanted to do was get a centralized training facility in Moyock, North Carolina for multiple government and private clients that would have everything they needed to train. The courage and drive to take the risk to do this, came from the motivation Prince got from reading this book.

As to the name of the company, did you know that the original names being thrown around were the ‘Tidewater Institute for Tactical Shooting’ or the ‘Hampton Roads Tactical Shooting Center’? They went with Blackwater because as they built the ranges on their new property, they were constantly slogging through the peat stained black water mud. It had a better ring and meaning for them at the time I guess.

In the beginning of their business, training was not their big money maker. It was their targets they constructed and they used a tougher steel combined with a pop up mechanism to make targets that folks all over the US wanted. These targets accounted for 50 percent of their revenue in the early days of the company.

He also makes mention of the pride he had in his contractors and employees. One story he mentioned was about a wounded contractor in his company that I did not know about, but thought was really cool. His name is Derrick and his blog is called Small Victories, and it is about the process he has gone through as a severely wounded contractor.

The second book mentioned was Unrestricted Warfare, written by a couple of Chinese colonels back in 1999. This book documented the coming future of terrorism, and it is what woke up defense insiders–to include Prince, as to what was coming. What happened on 9/11 was not surprising to those who foresaw this type of unrestricted warfare or terrorism.

Prince made mention of Frank Gallagher as the first detail leader BW assigned for the task of guarding Bremmer in Iraq. That 36 man detail later grew to a massive operation protecting a multitude of DoS folks in Iraq and later Afghanistan. What is interesting though is that Frank and company were the guys making the innovations on the ground in Iraq when it came to close protection in war zones. (Frank is also coming out with a book)

Frank’s group were so good that their protection schemes would later be adopted by the US Government for protecting it’s highest risk personnel. Not only that, but Osama Bin Laden at the time was extremely frustrated that none of his clowns were able to get a shot at Bremmer. So OBL fired up some offense industry, and put a bounty out on Bremmer and his protective detail. Bremmer was worth 22 pounds of gold, and anyone on the PSD team was worth $30,000 dollars according to the book.

Another interesting aspect of the way Prince did business was in order to show capability, he would build it first with the hopes that clients would see how useful or important it is, and then contract it out. Prince would put his own money down on the venture as well.

A good example of this is Presidential Airways and the advent of using smaller scale paracargo in Afghanistan. In the early days of the war, the Air Force did not have a small scale paracargo capability. They would use large aircraft to drop 600 lb pallets, and do it way too high up in the air. It was Presidential Airways that recognized a deficiency–that the military needed small scale paracargo, and lots of it in order to meet the demand out there. They would go on to do a proof of concept and supply outposts, and then the government later set up a contract to continue using this service. This would later be called LCLA or Low Cost, Low Altitude and I have talked about this on the blog in the past. Thanks to Presidential Airways, I am sure many outposts received life saving ammunition supply drops or food drops. (Cofer Black’s son was actually resupplied by Presidential Airways when he was at an outpost, serving in the military in Afghanistan)

Then there are the other projects that Prince funded that did not get off the ground. Like the armored vehicle called the Grizzly or their blimp. Or the 1700 man peace keeping force called Greystone.

According to Prince, Greystone would have had it’s own air force, helicopters, cargo ships, aerial surveillance, medical supply chain, and combat group. It was Prince’s alternative to the ineffectual UN peacekeepers that we continue to see deployed all over the world. I remember he was wanting to send these guys to Darfur, Sudan if DoS was ok with it. They were not, and this project never got off the ground.

According to the book, Prince spent about 100 million dollars on various BW projects that never went anywhere. He had the attitude of if you build it, they will come. With his creations, he felt eventually someone in the government or in private industry would want this stuff, and he mentioned that if he threw enough darts at the board, they were bound to hit the bull’s eye. He said this is the price of continually innovating. Whatever the government needed, or what they might suddenly realize they needed, Prince would provide it. (kind of reminds me of Steve Jobs with his drive to create products that people didn’t know they wanted, but when made, they absolutely wanted and needed them)

And really, this is at the heart of what he was all about. His father was the same way, and I kind of got the impression that Prince was constantly trying to live up to what his father was all about. His father was very successful and had the same attitude of seeing a need or potential need, and filling it. He is the one that invented lighted mirrors in vehicle sun visors. But his father also had a lot of failures before that lighted mirror took off as a viable concept. Both men were visionaries and risk takers, and that is what you need in order to create something new. To create something that people want, or didn’t know they wanted, but do now.

In the book, Prince also talked about Executive Outcomes and how successful they were. So EO was an inspiration and it is always cool to hear about visionaries getting inspired by other visionaries and their creations.

Prince also made mention of his Libertarian roots and his ideas on contracting and free markets. He was a big fan of fixed cost contracts, versus cost-based or cost-plus. He felt that a contractor should be able to put their money where their mouth is when they say they can deliver something for a certain price. With cost based or cost plus, you are basically giving a contractor an open check to spend whatever they want to get the job done.

You see this theme throughout the book, and that Prince was all about funding a project in order to show proof of concept and viability, or that BW was interested in providing a good value for the tax payer’s dollar.

Speaking of which, BW funded their own rescue operation of folks off of roofs during the Katrina Hurricane disaster back in 2005!  BW also went on to provide effective security in the region after that disaster.

Another business unit that Prince mentioned was Total Intelligence Solutions. TIS was BW’s private intelligence firm that offered services to not only the government, but to private institutions. The Walt Disney Company was mentioned as one of those institutions.

TIS also had Cofer Black in it, and he was very much impressed with the way it operated compared to the government. Black mentioned that ‘every mid-level government official should spend a two-year sabbatical there to learn about efficiency and effectiveness’. My opinion on that is duh, private industry can be very efficient and effective compared to the government.

The third book mentioned was On War by Carl von Clausewitz. Prince’s father was the one that recommended this book to him before he joined the Navy. As to what lessons he learned from this book is hard to say. He mentioned a Clausewitz quote on courage and that is about it.

Moving along through the book, he mentioned stuff about the An Najaf attack. Travis Haley was mentioned multiple times in regards to this attack and it is cool getting some info on what happened during that deal. Travis was brought in by little bird after the attack began, and he was definitely a force multiplier during the fight. The video he and his team posted of the event has received many views over the years. One thing mentioned that I did not know is that his team did receive mortar fire that day. Accurate mortar fire, as we saw with the Benghazzi attack, can be very bad for the defense.

It is also interesting that General Sanchez did not want to acknowledge that Blackwater was so heavily involved with the defense of this facility. The reality is that if it wasn’t for the actions of BW, they would have lost that consulate in An Najaf. It would have been very embarrassing to Sanchez’s command, for it to get out that a contractor did so well, and in his AO.  Or that the US military was not in a position to defend it because it had so many other things going on at the time. This incident was also unique because there were military folks there, but BW was running the show.

It was interesting to find out how much WPS made for BW. Prince quoted well over a billion dollars. At the peak, BW had over a thousand men on the ground in Iraq performing the WPS mission. I am sure Frank Gallagher and others were pretty amazed at how big this thing got.

There was mention of BW’s perfect record of protection, and the most significant injury of a principal at the time was a ruptured ear drum. BW used Mamba armored vehicles in Iraq, which were manufactured in South Africa. An EFP was used by the enemy against one of BW’s Mambas, and everyone survived, to include that principal mentioned. A BW guy lost his arm in the deal as well. I have to say that is some serious luck and EFPs are no joke. I actually drove these same vehicles in Iraq and I can attest to the protective qualities of it–and that is awesome that these guys actually survived an EFP.

Prince also wrote a lot about the CPA’s Order 17, which was the 16 page document that outlined the rules and laws that folks were to follow in Iraq. In absence of a working country, the CPA had to come up with some rules to operate by until Iraq got itself in order. Contractors were often charged with having immunity in Iraq or not having any accountability for their actions because of what was in Order 17. Prince argues just the opposite, and that Order 17 did provide legal accountability.

Many critics of BW pointed to this so called lack of accountability, and because of the non-disclosure agreements BW signed with DoS and other clients, that they could not defend their position or correct the record. So Prince dedicated some space in this book to explaining why they were legally accountable.

The myth of pay rates was also dispelled in the book. You often heard about this $1,000 dollar a day contractor pay that everyone was getting in the company, in various books and articles. But that was not true with this company. According to Prince, the pay ranged from $450 a day to $650 a day, and averaged about $500 per day across the entire contractor force. He also goes on to compare the military’s ‘total military benefit’, which adds up to about $99,000 dollars a year for an enlisted member. The point here was to compare the compensation of soldiers versus contractors, and I have seen the same CBO stuff that he is talking about. Matter of fact, I blogged about it awhile back.

After the Nisour Square deal, Prince had to do a congressional hearing and that thing is floating around on youtube. What is interesting is that according to the book, Prince actually got advice from Oliver North on the whole process. North had to go through 45 hearings back in the day during the Iran Contra deal.

Prince made mention of the company’s process for growth. Gary Jackson was quoted as saying that they were always searching for the 80 percent solution now, as opposed to the 100 percent solution later. This is interesting to me because it is about being faster to market than the other guy. Get it out now and own that business, despite it not being perfect. Then work to continuously improve it later. Or something like that. Jackson was actually named by Harvard Business Review and Fast Company for his leadership and for the growth of the company. The 80/100 solution scheme is part of the reason for that rise.

Finally, at the end of the book Prince talked about the future of the industry, which I really liked. He also talked about another inspirational book that is significant for a number of reasons.

The book’s name is The Machine That Changed The World, By James Womack, Daniel Jones, and Daniel Roos. Prince was very much inspired by this book and he was in awe of Toyota’s managerial system of lean production. He referred to BW as a sort of factory that produced security specialists, much like how factories produced cars. The client requests ‘X’ amount of contractors, and the BW factory provides that amount just in time. Their ability to get the job done and deliver that product–be it a human or weapon or aircraft, to where the client needed it, and on time, was what made them successful.

Which is cool because I too am heavily influenced by Toyota and it’s concepts. I have a category called Kaizen, in honor of the continuous improvement principals that Toyota was so famous for. Kaizen is also mentioned in my Jundism page.

All in all, I really enjoyed the book and highly recommend it. My one take away with this is that Prince was a visionary and had the courage to go forth and make Blackwater happen. It is also a tragic story, because he basically had to let go of that in which he built and loved so much–all because of politics… Check it out and you will find his book in my book store on Amazon here. -Matt

Edit: 04/04/2014- Travis Haley just wrote about his experiences during the Battle of Najaf and you can read this story over at OAF Nation. Pretty cool and it expands upon what was said in Prince’s book. Especially the part about General Sanchez not sending a relief force to help, and how Ambassador Bremmer instructed Frank Gallagher to assemble a relief force to come to the rescue. Here is a quote from Travis’ story.

There was heated discussion between Ambassador Bremmer and General Sanchez, Commander of Coalition Ground Forces in Iraq. In the end, the Army was unwilling to dispatch a relief force to the Najaf compound. Bremmer then instructed Frank, “I am authorizing you, by any means necessary, to get our people out.”  With that, Frank sent me to round up the air team and to start pulling together weapons and munitions to bring on the flight. I hit the ready room and started pulling kit. My M4, magazines and a CS Rifle. The Counter Sniper Rifle was more of a moment of opportunity thing than a plan and Terry, one of our detail’s Counter Snipers, quickly fished through his gear to give me his dope card as I headed down to the air strip where the Little Birds were spooling up.

Edit: 04/07/2014- A blog named CIMSEC did a podcast with Prince that was interesting. Prince mentioned two more books that he has read recently and recommends. The first is Invisible Armies by Max Boot. The other is To Dare And To Conquer by Derek Leebaert.

 

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Books: Civilian Warriors, By Erik Prince

This is the much anticipated book by Erik Prince about his former company.  You can go to Amazon and pre-order, or wait until November and check out all of the various book stores and sites that Penguin Group is releasing it at.

One thing that has come up recently about the book is a lawsuit between Prince and one of his ghost writers. We will see how that turns out and how the book sells. -Matt

Pre-order the book here.

Edit: 12/17/13– Prince has been doing tons of interviews to promote his book. Probably the best one has been The Daily Show. Check it out.

 

 

Summary of Civilian Warriors
The founder of Blackwater offers the gripping, previously untold story of the world’s most controversial military contractor

Blackwater is one of the most misunderstood companies of our time. As Erik Prince, its founder and former CEO, writes:

“Hundreds of American citizens employed by private military contractors, or PMCs, would lose their lives helping our government wage wars in Afghanistan and Iraq, only to have their memory tarnished by the unfair and/or ignorant depiction of PMCs as profiteers, jackbooted thugs, or worse.”

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Film: The Project, By Shawn Efran And Adam Ciralsky

Now this looks like a cool documentary and it will be interesting to see the reaction to this film? It definitely has an interesting cast of characters that were interviewed for the film or were actual participants. Specifically, the folks from SCS and the good work they did to train and stand up the PMPF. Here is a quote from below.

Cast: Roger Carstens, Erik Prince, Lafras Luitingh, Rudolph van Heerden, Michael Shanklin, Matthew Bryden

What will really be cool is if they were actually able to capture some of the hostage rescue missions that the PMPF performed, with the help of Roelf van Heerden and his men. -Matt

 

The Project

The scourge of Somali piracy has been devastating the Middle East and North African shipping industries for nearly a decade. As a country with no functioning central government for over twenty years and no military training permitted under UN sanctions, Somalia has been largely powerless to curb the increasingly bold and violent actions of the pirates. Enter the Puntland Maritime Police Force, a secret paramilitary group of mercenary pirate hunters. Initially so undertrained and malnourished that members broke their own legs during marching exercises, the PMPF grows its numbers and hones its tactics under the watchful eye of former U.S. Army Special Forces operative Roger Carstens. It ultimately faces mutiny, death and political infighting in a dangerous quest to pull off the impossible: waging an epic battle on the high seas to rescue dozens of innocent hostages.

Featuring interviews with controversial Blackwater founder Erik Prince and the UN’s arms embargo monitor Matt Bryden, along with shocking firsthand footage from filmmakers embedded within the PMPF, The Project is a gripping, real-life war thriller exposing an unknown, anything-goes battle for control of the seas in one of the most dangerous places on earth.
—Cara Cusumano
Film Information Collapse
2013 | 90 minutes | Documentary Feature
Directed by: Shawn Efran and Adam Ciralsky
Language: English

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Industry Talk: Erik Prince Starts Africa Focused Investment Firm With Frontier Resource Group

Prince, who credits the Navy SEALs with bringing out his entrepreneurial spirit, said there were two main risks that perhaps every businessman in Africa must face.
The first one is the political risk in some countries, and the second is the very bad transportation and infrastructure, which means a high cost of doing business there.
“If you can’t get to market cheaply enough, that’s not interesting,” Prince said.
Many foreign investors came to Africa purely for its natural resources, he said, but they forgot that transporting those resources was as important as exploring and producing them.

This is interesting news. As I mentioned before in prior posts, Africa will be a top focus for PMSC’s just because of all the business and resource extraction potential there. A company like Frontier Resource Group can easily be the company that can link the investors with those PMSC’s that could protect and insure those investments in Africa. Or at the least, FRG can help to identify those investments with the highest chance of success based on the risk assessments done by FRG.

The mention of Chinese investors partnering with FRG is key as well. I mentioned in prior posts about an increase in business for South African PMSC’s or consultants from the Chinese, and it would make sense that Prince would want to step in and serve this particular group of investors. -Matt

Website for Frontier Resource Group here.

 

Into Africa: Ex-navy SEAL sets trail for investors
November 19, 2012
By George Chen
Erik Prince of Blackwater fame has set up a company that will be the ‘search radar’ to help firms manage the risks of investing there
The man who built up Blackwater – the giant private security force that guarded US diplomats in some of the world’s most dangerous places, including Afghanistan and Iraq – sees Africa as his future.
After Erik Prince sold his firm to investors about two years ago, the former officer in the Navy SEALs – the special US military force that killed Osama bin Laden last year – set up a new company called Frontier Resource Group (FRG) early this year.
FRG is an Africa-dedicated investment firm partnered with major Chinese enterprises, including at least one state-owned resource giant that is keen to pour money into the resource-rich continent.
“Africa is so far the most unexplored part of the world, and I think China has seen a lot of promise in Africa,” Prince said during a brief trip to Hong Kong last week to meet potential Chinese investors and partners. “But the problem is if you go alone, you bear the country risk on your own. You have to get support and maintenance there,” Prince, FRG’s managing partner, told the South China Morning Post in an exclusive interview.

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Games: Erik Prince On His Entry Into The Video Game Business

This is cool and I totally agree with Prince on this one. There is an incredible amount of money being made in the video game industry, and all of the big money making video games involve some form of combat and the use of guns in various types of environments throughout the world. Not only that, but they are drawing from historical battles or modern war fighting for ideas. So with that said, it makes total sense for him to enter such a market.

Here are some statistics that support what I am talking about. As of June of 2011, the gaming industry global revenue forecast was about 65 billion dollars. There were 10 million Kinect motion sensors sold, and 55 million Xbox’s sold. The top game was a first person shooter called Call of Duty, like the interview mentioned. With those numbers, it is no wonder that Prince would want to get into this market.

Anyway, this is a cool little interview below. I have not played the Kinect Blackwater game so I have nothing to add on the game itself. I would be interested in any gamer feedback on this thing though? -Matt

 

Blackwater founder Erik Prince enters video game business
By John Gaudiosi
September 12, 2011
More and more, today’s video game business is driven by huge military shooters like Activision’s “Call of Duty: Modern Warfare 3″ and Electronic Arts’ “Battlefield 3.”
Now, Erik Prince, the founder of a controversial, real-world military group, is stepping into the virtual war zone with a new first-person shooter, “Blackwater.”
Designed exclusively for Microsoft’s Kinect for Xbox 360, “Blackwater” was developed by Zombie Studios and overseen by Prince, a former Navy SEAL.
The shooter is set in a fictional North African town overrun by warlords and opposing militia forces. Players enter the fray as team members of Blackwater, the mercenaries-for-hire company that Prince founded in 1997.
Featuring licensed real-world weapons, the game can be played with a traditional controller. But it has been crafted to take advantage of Kinect’s motion controls. Gamers will be able to aim, crouch, and interact with the on-screen action using only body gestures and moves to take out enemies through a series of action-packed missions.
The game has already courted controversy, since Blackwater employees were linked to the deaths of numerous noncombatants and civilians in the Middle East while employed by the U.S. government.
Critics have complained about the game because Blackwater employees take on missions for money, while U.S. soldiers, the focal point of games like “Modern Warfare 3″ and “Battlefield 3,” fight for their country.
Following inquiries by Congress into Blackwater actions in Iraq and Afghanistan, including a shootout that led to the deaths of 17 Iraqis, Prince changed the company’s name to Xe and, in 2009, resigned as CEO. He sold the company last year.

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