Direct Investment Planning

For centuries, direct ownership of operating businesses or operating assets has been the main source of wealth creation for families and their principals. Ownership of direct investments is part of the DNA of most entrepreneurial families.

We provide services designed to support the development and implementation of Direct Investment Plans.

Direct Investment Services

Typically our clients have 30%-to-90% of their family’s net worth represented by the equity value of direct investments they hold in operating businesses or operating assets. In addition, their operating businesses typically generate 25%-to-95% of the income they use to support their lifestyles. With so much of their family wealth and income dependent upon such assets, it is easy to understand why our clients wish to achieve optimal performance from their direct investments. That is why we specialize in providing Family Enterprise Business Services (FEBS). For more information on our FEBS services click here.

Our competency in delivering FEBS services, enables clients to attain the benefits of direct investments while minimizing the challenges. It also enables us to offer a holistic range of direct investment services to clients. In some instances clients with multiple business holdings wish to re-examine their portfolio of direct investments. In other instances, clients are trying to make capital allocation decisions between or among their current businesses and new direct investments. Still other clients need to revisit their direct investment competency from one generation to the next. There also have been clients who had historically built their family wealth through the direct ownership of businesses, but had decided to monetize their business for some reason. After a period of time allocating their investable wealth among various asset classes, they decide to return to direct investments recognizing that it is difficult to generate returns as strong in other asset classes.

We have a stable of experienced direct investment and corporate development professionals, who are able to support the planning and implementation initiatives that are critical to achieving successful, profitable direct investment results. We are also willing to link a substantial amount of our compensation on achieving productive, measurable results for clients.

Direct Investment Planning Support



Family Competencies & Objectives

The best direct investment plans leverage family competencies and align with family objectives.

Investment Policy Statement

A document generally among family members, who will share ownership of direct investments, and any third parties who will be involved in oversight or management.

Governance Structure

Direct investment holdings require parallel Ownership and Business Governance structure based upon proven best practices.

External & Internal Research

As capital allocated to direct investments is often illiquid with concentrated risk, understanding economic mega-trends and industry outlooks is needed.

Direct Investment Strategy

Developing a direct investment strategy to originate opportunities by bypassing investment banks’ sell-side auction processes is critical.

Direct Investment Allocation

Direct investment allocation decisions should take into account the overall risks and dynamics of other direct investments owned and a family's other asset classes.

Questions our clients frequently ask

Our clients frequently call upon us to help answer the following types of questions:

  • How should our family competencies or objectives be factored into our direct investment plans?
  • Is it important to formalize an investment policy statement?
  • What are the best practices for governance structures within families who hold significant direct investments?
  • What are the mega-trends or industry trends that should be factored into our direct investment plans?
  • How do we agree upon a direct investment strategy?
  • Should our allocation to direct investments be concentrated within an industry segment or more broadly diversified?


Return to Previous Page