Affluent families, either directly or via an Investment Advisor, increasingly aspire to invest directly in privately held companies. Direct private equity aligns with their personal experiences, abilities and perceptions of risk while providing the opportunity for returns in excess of more traditional, liquid capital markets.
Maintaining a committed “deal team” that can consistently source opportunities, execute transactions and manage investments post-closing is expensive and requires significant time and oversight.
If pursued, families may have a loosely defined strategy, limited structure, and no real control, resulting in frustration, additional fees and limited or inconsistent success and returns.
Independent Wealth Advisory Firms (Wealth Advisors), are faced with increasing pressures to grow and scale their practices and provide solutions for their clients, while also needing to maintain or increase margins so they can provide a financial return for ownership, generate capital to invest for growth of the enterprise and allow for succession planning.
Firms with the desire and vision to integrate direct investing, often need strategic and operational guidance to adequately plan for and execute on the enterprise, client service and, personnel challenges they face while consistently being able to source, execute and manage inefficient investment opportunities.
Independent wealth advisory firms are unable to realize the benefits and full impact of direct investing in the absence of seeking partners and resources to implement the differentiated offering.
