Larry Rau

This transcript has been edited for readability: Henry Harrison I want to welcome Larry Rau to our podcast this afternoon. Larry is a longtime friend of mine, and our show is called Entrepreneurs, Business and Finance. Larry has been an entrepreneur, he has been in finance, and he has certainly been in business, so he is a very interesting person to have on the show. Larry, good afternoon to you. Larry Rau Good afternoon, Henry. Good to see you. Henry Harrison Good to see you too. Why don’t you give us a little introduction on how you became such a successful businessperson and financial professional? Larry Rau It must have been my farming background. Going back a bit, I was a chemistry major in college. I’m not sure I used a lot of that directly, although I did spend about half of my career working for several pharmaceutical companies. The second half of my career was in financial advisory work. I worked as a stockbroker with several different firms, and during that time I began looking into alternative investments. That eventually led me into several areas, including medical receivables, real estate, and probably the one that interested me the most — energy, particularly oil and gas. Through my work at a brokerage firm, I had a client who needed to complete a 1031 property exchange for a significant amount of money. I called a friend of mine to see what he might have available, since he handled opportunities like that. He told me he had just interviewed an oil and gas company and suggested that I take a look at them because they offered working interest investments that could qualify for a 1031 exchange. That turned into the beginning of a great relationship with that company. Over time, I raised about $9 million for them, and I still have a lot of happy clients because they continue to receive payments even 19 years later. In fact, last year the returns were around 25 percent, which is pretty incredible. That opportunity was really a home run. Through relationships like that, my interest in the energy sector grew. I worked with several energy companies over the years. Not all of them were successful, but that first one certainly set a high standard. These days, I’m enjoying working part-time. Henry Harrison We actually met more than 20 years ago when you were in the securities business. Like many other people, we called on you because you were very well known in the industry. More recently I’d describe you as semi-retired, although you’re always active. I know you purchased some mineral rights from one of my companies, and you also brought in some other investors — including your grandson. Mineral ownership is another part of the oil and gas industry. You also did consulting work for a solar company, and you may still be doing some of that. You were kind enough to recommend me, and I came in as a strategic advisor for about a year and received some stock in the company. I believe that company is going to be a major success over time. And of course, whenever my wife and I come to Naples, Florida, part of the reason is to spend time with you. You also have a lot of friends and family who come down from South Dakota during the winter. Why don’t you talk a little bit about where you’re from and how you ended up in Naples? Larry Rau Not North Dakota — our competitor, South Dakota. I spent many years there and was born and raised in South Dakota. A good friend of mine convinced me to come to Naples one winter. Before that, I had spent winters in places like Phoenix, Palm Springs, and Tucson. But when I came to Naples, I really fell in love with it. I found a great church and a wonderful community of people. About ten years ago, I also got involved as a founder in a solar company, and later on I was very happy when you joined us as an advisor. We also have a lot of family who come down every winter. In fact, this February my daughter and her family — including extended family — will have nine of us here enjoying the warm weather. Henry Harrison Naples really is a beautiful place. We’ve talked about going boating and fishing together, although we haven’t done that yet. I know you enjoy both activities. You used to do quite a bit of that when you had your lake house, but I imagine it’s a little different fishing in the Gulf. Larry Rau It definitely is. I met a fishing captain here who became a good friend, and he takes us out shark fishing. Along the way we catch a lot of other species too. Recently I caught a 40-pound cobia, which was incredible eating. We’ve also caught eight-, nine-, and even ten-foot sharks, along with sawfish and grouper. I probably go out two or three times a year and really enjoy it. It’s one of my favorite pastimes. Henry Harrison And I believe you and Jan also enjoy walking on the beach, which is one of the great benefits of living near the water. Well Larry, we look forward to our next visit, and I’ve really enjoyed having you on the show. You’re a great American story — a self-made entrepreneur who built a wonderful family and continues to stay active in business and life. You may no longer hold your securities licenses, but you are certainly still engaged in business activities. Larry Rau Yes, I do enjoy staying active. It keeps me out of trouble and helps keep our marriage happy. By the way, this January we celebrated 58 years of marriage. Henry Harrison That’s fantastic. Congratulations. Well, thank you very much for joining us today, Larry. Larry Rau Thank you, Henry.