We sat down with Dovi Frances, President of wealth management company SG, at the recent Miami Yacht & Brokerage Show, to find out more about the demand amongst high net worth individuals for financial expertise.
“It seems to me that many people tend to look at wealth management as if it’s one vertical”, he began. “Which is traditional asset management, equities, derivatives, fixed income securities, etc. And wealth management is far more complex and complicated than that.
“Because when you’re looking at the high net worth individual every wealthy person has his own story, and his own circumstances. There are about five elements actually that encompass the financial ecosystem of a high net worth individual.
“So if you want to kind of open it up, if you look at their balance sheet you have their assets side, which is regular asset management, alternative investments, for example investing into VCs or private equity shops.”
He continued: “The second element is the liability side of the balance sheet, so what type of access they have to loans, and especially nowadays where interest rates are so low, it’s customary for people to borrow against assets, be it commercial assets like their multi-family property or office building or yacht, plane or residential properties.
“On top of that we have the physical assets themselves. The operations of the physical assets, which is a big headache at times, especially the more assets you accumulate. And lastly you have legacy issues, life insurance, trust and estate planning, etc.”
You can watch the full video interview with Dovi Frances above this article.