The role of a family business in wealth creation for high net worth families is well known. Less well understood is the role it plays in wealth management for these same families. The unique risk and return profile of a family business influences portfolio management in similar but decidedly different ways than human capital for the mass affluent client. This presentation creates a tax-adjusted framework and illustrative case study for analyzing the role of the family business in an intelligible and intuitive way that clients can understand and wealth managers can implement.
• Identify the unique attributes of a family business
• Distinguish the family business from human capital
• Evaluate the impact of a family business on the investment portfolio
Ph.D., CFA, CIPM,
Managing Director, Credentialing,