Adopting a Total Wealth Perspective in Private Banking
A large proportion of private wealth is held in illiquid or captive form, while only a fraction comprises liquid assets such as marketable securities or cash. Illiquid wealth typically consists of various elements such as captive equities, real estate holdings, fixed income paper, intellectual property and lifestyle assets.
Private Solutions Philosophy
- Your situation and your requirements: We listen to you and ask the right questions
- We build a team with dedicated specialists in order to meet your needs
- We take a holistic view of your private wealth. Non-bankable assets do make a difference
- Our solutions are built on expertise in monetisation, restructuring and execution
Illiquid and Captive Equity
Entrepreneurs, executives and company owners often possess substantial amounts of corporate equity in a non-accessible form. Think of locked-up employee shares, private or family-controlled businesses. Most of these assets are kept at historic book values which constitute a significant step-up in the owners equity when marketed to market.
Fixed yield assets are an important source of income for most high net worth individuals. Due to their often times long duration structure and illiquid nature, they constitute a multitude of risks. Conversely, they offer good potential for collateralisation.
Residential and commercial property constitutes the single largest component of private wealth across the developed world. It is at the same time one of the most illiquid asset classes and often constitutes potential tax liabilities.
Lifestyle assets such as airplanes or yachts, art or collectibles and gems typically constitute a further important part of an UHNWI’s asset base. While they are costly to transact, they offer significant collateralisation potential.
Intellectual property (IP) value has become a powerful source for strategic use. Whether the IP owner is interested in a straightforward loan using valuable trademarks as collateral, or in securitising the royalty payments associated with licensed assets, there are options available that will help to reduce risk, increase return and provide flexibility.
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