[Webinar] The Best Practices for Investing in Alternatives as a Boutique Wealth Management Firm or Family Office
On June 19th, Brian Adams, President and Founder at Excelsior Capital spoke with Biff Pusey, Partner at Kimble Advisory, and DJ Van Keuren, President at Family Office Real Estate about the best practices for family offices and boutique wealth advisors to invest in alternatives.
In this webinar they discussed:
- How they navigated the current crisis
- The biggest threats ahead
- How their investment philosophy will change going forward
- How they deploying capital in this environment
A Look Inside the Webinar
Inbound Marketing, Outbound Marketing and Where to Spend Your Time
No one has time to read every document, attend every conference, and market themselves to families all at the same time. So how does one decide where to spend their time? Van Keuren states that “the average family has three to five operators they work with [and] today around 70%, close to 80% of families want to go direct instead of going through funds for transparency, etc.” The growing number of direct investments makes personal relationships incredibly important for family offices and firms. Pusey advises that people work with their own trusted personal networks to validate sponsors and families for future investments or partnerships.
A great form of outbound marketing is attending conferences. While conferences can be overwhelming, they’re a great opportunity to hear a lot of information in a short amount of time. You hear what people are talking about, have the opportunity to learn about new perspectives and innovations, and assess risk and growth from a national perspective, especially with real estate.
How to Invest with Family in Mind
When investing with a family in mind, Pusey reminds us that “it’s not just their risk tolerance or how much loss they can absorb before they freak out. It’s also what is their expectation of life.” He says that families need to invest with both their current lifestyle and future lifestyle in mind. He says that portfolios need to be built “for families that work in three-time frames: the short-term cash lifestyle safety; the middle term staying ahead of inflation keeping up with the markets; and then long-term building portfolio value so that the families have something to pass along or to give away depending on what their mode is.” 90% percent of wealthy families lose the majority of their wealth by the third generation. Van Keuren suggests investing in real estate because it can be held for a long time. Real estate can be a great “asset [because] it’s not going anywhere, so if you make a good decision and location you hold that thing for the long term, you can get your money back.”
But What About Taxes?
When dealing with taxes, Adams reminds us it is important to surround yourself with the right people. Things that can seem small like “accelerated depreciation under the new Trump Tax Act, cost segregation analysis, and even structuring the quarterly dividends as a return of capital [can have a] huge impact when it comes to the returns to the taxable investor.” As a strong fiduciary, it is imperative to take the tax component of a family office or wealth management firm seriously; and doing that may mean hiring outside help.
The Rise of the RIA
Recently, there has been an increase in the demand for Registered Investment Advisors (RIA). Adams points out how big banks and large investment firms “can’t really differentiate themselves by price any longer, because the cost of trading has really been commoditized. It’s all about access to alternatives to differentiate themselves in the marketplace.” Pusey believes the rise is “coming out of the dissatisfaction with the broker-dealer model.” High net-worth families and individuals are “looking for the true fiduciary where you’re serving your clients’ best interests.” RIAs have more flexibility in their ability to invest in alternatives in compassion to the broker deal platform.
To hear more of what our panelists had to say, be sure to watch the full recording and subscribe to our newsletter to be notified of upcoming webinars!
The Ultimate Guide to Commercial Real Estate Investing
Learn everything you need to know to assess the benefits of a commercial real estate investment and make the best decisions to get started.
Q1 2023 Commercial Real Estate Investment Update
The commercial real estate industry has seen significant shifts and challenges over the past year, and the first quarter of 2023 was no exception.
Understanding the Waterfall Structure in Real Estate Private Equity Investments
Learn about this distribution framework used in real estate private equity investments. Understand the components of a waterfall structure…
How Much Money Do I Need to Start Investing in Commercial Real Estate?
We frequently have conversations where people tell us, “I want to start investing in commercial real estate, but I’m not sure if I have the capital.”
Benefits of Owning Commercial Property over Residential
While both types of real estate investments have their benefits, investing in CRE can be more advantageous for several reasons.
The Revolution That Wasn’t
How has technology impacted modern finance and created an asymmetrical relationship between Wall Street and individual investors? In this episode, we speak with Spencer Jakab, the author of The Revolution That Wasn’t and editor of the Wall Street Journal’s Heard on the Street column.
Tax Savings Secrets: How Cost Segregation Analysis Can Save You Money
How can cost segregation analysis help real estate investors maximize their returns? In this episode, John Hanning explores the potential benefits of cost recovery studies and depreciation.
What is a Family Owner’s Manual and Do I Need One?
It’s time to make sure you and your family are set up to continue success for generations to come. Today, Josh Kanter shares his journey transitioning from practice as a transactional attorney to reorganizing his family’s activities under a single-family office.
Key Characteristics of High-Performing Family Offices
Are family offices becoming more popular? In this episode, Robert Daugherty dives into the importance of having a functional family office, and the role of the Chief Learning Officer in it.
A real estate private equity firm that owns and operates high quality multi-tenant office assets in emerging secondary markets.
Interested in learning more about Excelsior's investment opportunities?
Under no circumstances should any information presented on this website be construed as an offer to sell, or solicitation of an offer to purchase any securities or other investments. This website does not contain the information that an investor should consider or evaluate to make a potential investment. Other materials related to investments in entities managed by Excelsior Capital are not available to the general public.