Guiding an entrepreneur after a liquidity event to reshape their long‑term investment approach

A European technology entrepreneur successfully exited his business through a liquidity event exceeding USD100m. With a growing need for complex wealth planning and cross-border structuring, the client had previously established a trust in Jersey to manage part of their assets and succession planning. Following the liquidity event, it became evident there was a need for a reassessment of the investment strategy. Our Outsourced Family Investment Office (OFIO) team were asked to support.

Client’s Goals

• Support with coordinating the various “moving parts” within portfolio.
• Utilisation of a bespoke investment strategy with a large allocation to private equity and venture capital funds and direct private investments (to be built out over the longer term).

Our Recommendations

• Developed a detailed client profile by working with the client and Jersey colleagues to understand risk profile, investment objectives, and governance framework which involved the production of a bespoke Investment Policy Statement and establishment of an Investment Committee.
• Sourced several core external investment managers to oversee a portion of the portfolio’s liquid assets.
• Conducted due diligence on private equity opportunities, leveraging the Stonehage Fleming Investment Management (SFIM) Investment Research team for reviews of both SFIM and client-originated opportunities.
• Outsourced certain direct investment due diligence projects to the SF Private Markets Advisory team in London.
• Built out the remaining investment portfolio with a focus on liquidity management to fund capital calls.

Outcomes (To Date)

• The OFIO team provide a comprehensive quarterly review of the consolidated portfolio in which thorough analysis of the portfolio is carried out.
• The portfolio has experienced pleasing capital growth commensurate with the risks taken, including from the listing of certain Private Equity positions whilst detailed due diligence helped avoid some of the pitfalls emerging within the illiquid space.

Disclaimer: Please note, all case studies have been carefully anonymised. Although scenarios are based on real life events they have been fictionalised and are an amalgamation of client experiences. All names, locations and occupations have been replaced with pseudonyms.

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