Fulfilling the complex needs of a client often requires constructing a team – a circle of influence – with expertise in a variety of areas. These can include; financial planning, portfolio management, retirement and 401(k) planning, legal and estate expertise, accounting services, and more. So when an investment advisor from another firm contacted Capital Insight Partners (CIP) to assist, we came together as one team. The client is a business leader in Scottsdale who needed assets managed for both his immediate family and his sister. The client and his sister had each inherited a significant estate from the passing of their parents. This included accounts involving multi-generational wealth transfers. While the advisor was eager to accept the new relationship, he looked for experts who could assist in the investment management of their assets. Our role was to address the global portfolio management needs of the account. Together, we established defined roles at the onset for both the advisor and for CIP.
Working in collaboration with the advisor and his assistants, we completed a thorough inventory of the client’s assets and developed our investment strategy. This included a tax-aware transition plan which managed around a concentration in one health care stock. In addition, we also addressed the many entities created by the client’s own business success and the accounts from the inheritance. Standing alongside the advisor during subsequent meetings provided the client an integrated approach. Both the advisor and CIP brought unique perspectives to address their lifestyle and planning needs. Due to the nature and complexity of the relationship, the onboarding process included a deep dive of their estate plan entity by entity and illustrated with a flow chart. As a result of the strong coordination between teams, the end result was a comprehensive blueprint which sought to assure the family’s financial well-being. This client was presented with a private equity investment opportunity and the advisor asked us to analyze it. Many such opportunities sound exciting and promise the expectation of high returns. We reviewed the offering documents and recommended that the client not participate. We foresaw both an elevated and controversial risk profile. Nearly a year later, we read in the local press that the company was filing for bankruptcy protection. Our analysis isn’t always correct but in this instance, it worked out well. Our recommendation to take a pass was shared with the advisor, who in turn, shared it with her client. As this experience illustrates, we find that having a highly-engaged partner has enduring value for both clients and the advisors.
When advisers engage CIP as trusted partners, it helps them address the broad spectrum of global asset management needs for their clients. Sometimes, we find a team approach is the strongest way to provide compelling solutions for clients.
*Some details have been changed to preserve client privacy.