JUST IN: AltExchange Wins Wealthmanagement.com’s 2023 Wealthies Awards

How Financial Advisors Can Win Ultra-High-Net-Worth Clients

Private equity in recent years has attracted some pretty noteworthy investors, more increasingly individual investors of billionaire status and multi-family offices with billions under management.

UBS recently surveyed the 221 biggest family offices managing an average of $1.2 billion, and found that they’re allocating 21% of their money to private equity, either via direct investments or through funds. The poll also found that these family offices only plan to increase that number in coming years.

Long-term benefits of managing clients with private equity investments

We already covered reason one to start implementing private equity into your practice. As Bloomberg put it, “Private equity has become billionaire families’ favorite.”

Source: Unsplash

But the next, and majorly overlooked, benefit is that private equity investments guarantee your clients are in it for the long-haul. Most private equity funds come to market with 10-year terms, and up to two one-year extensions. Even so though, the reality is that most funds exist for far longer than 10 to 12 years.

In contrast, a client holding only liquid investments could easily switch advisors at any time, very quickly.

And unfortunately in today’s market, financial advisor turnover is a major concern due to shifting investment strategies and a new generation of investors.

How advisors can start managing private equity investments today  

While of course including private equity management services into your practice sounds easier said than done, it doesn’t have to be so difficult.

At AltExchange, we automate alternative investments including private equity through our platform AdvisorVue, built for the modern-day financial advisor. With AdvisorVue, you can easily manage, track, and report on all private investments.

To learn more, please book a call or schedule a demo.

Schedule time with our team