An investment consortium is essentially a group of investors who pool their resources to pursue larger investment opportunities than they could access individually.
Consortiums are commonly used in private equity, real estate, infrastructure projects, and other capital-intensive investments where the scale requires multiple participants to share both the costs and risks.
In the contemporary era, investment consortiums have become prevalent among savvy, entrepreneurial Bahamians.
Over the past sixty years, investment consortiums have been fostered by offering Bahamians greater access to bank loans, lines of credit, large scale contracts, crown land grants, government grants, and by reserving certain commercial sectors exclusively for Bahamian owned businesses.
All of this, historically speaking, is still relatively new to ordinary Bahamians. It was practically unheard of in the 1950s and 60s.
And then, Majority Rule happened, in 1967.
Majority Rule (1967) and the Rise of “Bahamianization”
The Progressive Liberal Party (PLP), under the leadership of Lynden Pindling, advocated for the liberalisation of the local economy in order to increase Bahamian ownership of business enterprises.
This policy became known as “Bahamianization.” Bahamianization was a fully formulated political ideology designed to address the dearth of a negro Bahamian presence in medium to large private enterprise; the lack of a palpable presence in high level government positions; and the obvious blight of poverty, which defined negro life in the Bahamas since the 1700s.
The goal of Bahamianization was to break a long entrenched economic dominance over local industry and businesses, by levelling the playing field, and forcing economic inclusion, sooner rather than later.
For decades, the white-dominated United Bahamian Party (UBP) ruled The Bahamas, while a group of influential white merchants, known as the ‘Bay Street Boys,’ dominated the local economy.
By the late 1960s, economic Bahamianization was rolled out to push black Bahamian entrepreneurship. This created deliberate opportunities for black Bahamians to enter business sectors previously dominated by white merchants.
The first Majority Rule Cabinet declared that their Bahamianization policy would ensure equal opportunity for Bahamians, regardless of their race, religious or political affiliation, or social standing and focused heavily on education as the foundation for economic advancement.
Tangible results were evident in increased Bahamian representation across professional fields including law, medicine, accounting, and business ownership.
The Sunshine Boys
Sunshine Holdings Ltd., is unquestionably the most successful, organically developed and managed, investment consortium, to emerge out of the post-independence era in The Bahamas.
https://www.sunshineholdingsltd.com/
The company’s distinctive hallmark, was that was built by a group of Bahamian born and bred businessmen, who could come to be known as the ‘Sunshine Boys’.
Their unique mission statement—which has stood the test of time—was to prove that Bahamians of ordinary means, and with a will to succeed, could operate large scale enterprises in their own country.
https://www.sunshineholdingsltd.com/
Today, this type of thinking may seem as simple and self evident as pouring a glass of water, but in that tenuous first decade after Majority Rule in 1967,—the original Sunshine Boys, Sir Franklyn R. Wilson, Rt. Honourable Bradley Roberts, Bismark Coakley, Julian Maynard, George Bethel, Alfred Jarrett, Philip Pinder, and Stanley Wilson—these were nation building, revolutionary ways of thinking.
Before the Sunshine Boys, there was the City Pharmacy Boys in 1969
Key differences:
The Sunshine Boys investment consortium began and remained a private equity group.
City Pharmacy, on the other hand, went public in March 1969, offering shares first in Canada and then in The Bahamas.
The Sunshine Boys were an all Bahamian investment consortium.
City Pharmacy’s businesses were registered in The Bahamas, but were principally Canadian owned.
The Sunshine Boys had limited access to capital by remaining a private equity group.
City Pharmacy, by going public, had access to large amounts of foreign and domestic investment capital as a listed public company, in both Canada, and in The Bahamas.
The Sunshine Boys followed a more expansive and diversified investment strategy focussing on scalable businesses.
City Pharmacy focused principally on retail operating businesses.
Commonality:
Sir Orville A. Turnquest, who would go on to become Deputy Prime Minister (1992-1994) and the sixth Governor General of The Bahamas (3 January 1995 until his retirement on 13 November 2001) was investor in both the Sunshine Boys and City Pharmacy.
By 1969, two years after Majority Rule, an evolving Bahamianization policy was gradually being adopted.
Foreign investors were beginning to come the realisation that including Bahamians—in particular, black Bahamians—as investment partners, was a clearer success metric, given the changing political landscape of the country.
A surprising investment consortium emerged out of Freeport, Grand Bahama in September 1969. By surprising, the announcement of it came just a few months after Prime Minister Lynden Pindling’s “Bend or Break” speech.
For anyone familiar with the history of Freeport, and the accusations of racial prejudice and separatism, levelled at its creators, and foreign investment cabal that controlled Grand Bahama island, the announcement of the City Pharmacy investment consortium, would have caught many off guard.
Sir Lynden Pindling’s famous “Bend or Break” speech was made on July 26, 1969, at the opening ceremony of the Bahamas Oil Refinery Company (BORCO) in Freeport, Grand Bahama.
Sir Lynden famously said: Bahamians are nevertheless still the victim of an unbending social order which, if it now refuses to bend, must be broken.”
This City Pharmacy investment group was principally owned by Canadians with Bahamians as directors and investors. They went public in March 1969, offering shares to Canadian investors in Canada and Bahamians in The Bahamas.
The board of directors of City Pharmacy were: Leslie G. Roberts, president (Canadian), Orville A. Turnquest, vice president (Bahamian), Senator The Hon. Gerald C. Cash, director (Bahamian), Sidney Carroll, director (Bahamian), William V MacInnes, director (Canadian).
Their company introduction statement, in September 1969, contained quite condescending and targeted political statements obviously aimed at Prime Minister Lynden Pindling and the Progressive Liberal Party government when it said: “Guiding and administering the rapid growth of the Bahamas shall be accomplished as long as Bahamians are free, without domination, and as long as there are educated leaders who have studied and learned from others and above all who can “tell it like it is.”
to: 1) Our Shareholders; 2) All Bahamians and others who may become shareholders.
At this time in the economic and social development of the Bahamas when change takes place so swiftly, perhaps the thought has occured to you:
“IS THE FUTURE SECURE FOR INVESTMENT IN THE BAHAMAS?” and “ARE WE THE BAHAMIAN PEOPLE GUIDING AND ADMINISTERING THE RAPID GROWTH SO EVIDENT AROUND US, IN THE RIGHT DIRECTION?”
Perhaps you would like to know where we stand on the matter and what we are doing about it.
We, the Board of Directors of The City Pharmacy (Freeport) Limited wish it to be known that we emphatically believe in a dynamic future for the Bahamas, a future of growth and accomplishment, and we plan to be right in the middle of it, contributing to it, benefitting from it, and above all sharing those benefits with our shareholders. Our dedication to the belief of a secure future for investment is supported by the very substantial sums of money we have commitied to our recent and current acquisitions, and, already we are planning more.
Guiding and administering the rapid growth of the Bahamas shall be accomplished as long as Bahamians are free, without domination, and as long as there are educated leaders who have studied and learned from others and above all who can “tell it like it is.” We believe this environment exists today and we believe it is here to stay.
Our company is relatively new. Its share ownership is a little more Canadian than Bahamian but its soul is buried deep in Bahamian coral and beneath the sea.
We are not to be confused or connected with the long established Nassau firm City Pharmacy Limited, for we are a company that originated in Freeport.
In three years we have grown in Freeport from one original shop to seven store locations specializing in drugs, sundries and more particularly perfumes.
In March of this year we became a public company and our shares have received a fine response in the open market from Bahamians.
In June we made our first important acquisition by the addition of Delytes Boutique, one of the foremost perfume stores in the Bahamas.
In August, we took what the Board believes to be a most significant step in another area of planned growth, the purchase of a 75 percent thare interest in Spotles Cleaners in Nassau, a company whose management is as dedicated to growth in the Bahamas as we are.
In three years our yearty profit has grown to a present figure of approximately $300,000.
Next year with full confidence in the continued prosperity of our economy we anticipate a further 80% or more increase in profits.
Friends THAT is growth. lt shall happen because we have confidence. We believe in the Bahamas and above all in its people.
Submitted on behalf of the Board of Directors.
Yours Sincerely
A DEAL IS CLINCHED directors of City Pharmacy (Freeport) Ltd and Spotless Cleaners gather for the signing of the agreement which resulted in the drugstore firm acquiring a 75 per cent controlling interest in the Laundry concern. Left to right. Mr Collin Callender, director of Spotless, Mr. William MacInnes, director of City Pharmacy.
Mr. Orville Turnquest, vice-persident and director of City Pharmacy: Mr. Leslie
Roberts, president and director of City Pharmacy, and Mr. Kenneth Cowderoy, president of Spotless Cleaners.
Two fast-expanding Bahamas firms – one a laundry concern, the other a drugs and perfumes store chain – have merged in an attempt to achieve even greater growth in future years. The three-year-old Freeport-based City Pharmacy (Freeport) Ltd has bought a 75 per cent controlling interest la Spotless Cleaners-the up-to-the-minute laundry operation: started just over a year ago by Canadian born Belonger Kenneth Cowderoy Mr Cowderay. who travelled Europe and America for a year to find equipment for his Madeira Street business, which opened in June last year, retains a 25 per cent share in Spotless. The deal involves a stock transter which will result in Mr. Cowderoy becoming shareholder in City Pharmacy (Freeport) Lid -but no amount has been disclosed. The drugstore firm, headed by Mr. Leslie Roberts, got an enthusiastic response from Bahamians when it “went public” in March this year. Just two months before Spotless Cleaners deal was clinched, the firm bought Delytes Boutique, a Bahamian perfumerie.
TWO THINGS
As a result of the merger, Spotless hopes to establish itself in the Out Islands. “Our rapid growth has been due primarily to two things – our modern and slick equipment and our staff,” said Mr. Cowderoy. City Pharmacy (Freeport) Ltd. claimed the merger was an indication of the confidence the firm has in the future prosperity of the Bahamas. Mr. Roberts said: “We will grow with the tourist industry and with the country itself. Our Board of Directors has complete confidence in the investment “climate of the Bahamas and we shall plan growth accordingly.”
City Pharmacy investment consortium buys 75% controlling interest in Spotless Cleaners on Madeira Street, Palmdale, 1969
LOOKING OVER CITY PHARMACY’s NEW 11,000 SQUARE FOOT WAREHOUSE ARE
THE DIRECTORS OF THE TWO
COMPANIES.
FROM LEFT TO RIGHT MESSERS COLIN CALLENDER, ORVILLE TURNQUEST, LESLIE ROBERTS, KENNETH COWDEROY, AND WILLIAM MACINNES.
Present at the signing were (seated) Leslie G. Roberts, President of The City Pharmacy (Frecport) Limited, and Kenneth W. Cowderoy, President of Spotless Cleaners Limited. Standing are: from left William V. Macinnes. Director
City Pharmacy, Orville Turnquest.
Vice-President and director of City Pharmacy, and Colin Callender, director of Spotless Cleaners
Noteworthy:
Orville Turnquest, vice president City Pharmacy, then an attorney, in 1969.
Sir Orville Alton Turnquest, a Bahamian politician who was the Deputy Prime Minister and Minister of External Relations of the Bahamas from 1992 to 1994, and the sixth governor-general of the Bahamas from 3 January 1995 until his retirement on 13 November 2001.
Gerald Cash, director City Pharmacy in 1969 would go on to become the third governor-general of the Bahamas ten years later.
Sir Gerald Christopher Cash GCMG GCVO OBE (28 May 1917 – 6 January 2003) was the third governor-general of the Bahamas from 1979 to 1988.
