Welcome!

News Feed Item

What Family Offices Can Learn from Institutional Investors



Adi Divgi, President, EA Global and a speaker at the marcus evans Elite Summit 2014, on how family offices can incorporate institutional best practices towards alternative investments in their own portfolios to attempt to replicate the success that such institutional funds have had.

LONDON, May 17, 2014 - (ACN Newswire) - "If family offices act in aggregate to create 'commingled separate accounts' in which their assets are bundled with assets of other like-minded family offices, they could have the potential ability to act like larger institutions and create strategic partnerships with best of breed managers," proposes Adi Divgi, President of EA Global. Such family offices, he adds, could effectively replicate what he successfully did at a multibillion dollar North American plan sponsor until this past April for an allocation of USD 7.5 billion to opportunistic credit.

Mr. Divgi, a speaker at the marcus evans Elite Summit 2014, taking place in Montreux, Switzerland, 16 - 18 June, shares his unique perspective on investing, as a manager who has worn both the institutional and private wealth management "hats".

- What could private wealth managers learn from your experiences at the multibillion dollar North American plan sponsor?

Mr. Divgi created the first and only fund of one investment platform in alternatives at the plan sponsor, in which the sponsor acted as the sole limited partner. It created customised accounts with best of breed investment managers, incorporating best practices on market trends, valuation, pricing, administration, and policies that Mr. Divgi learned from thought leaders in the investment and infrastructure space.

Given the size of the plan sponsor's fund, Mr. Divgi executed tickets that ranged from USD 250 to USD 600 million, allowing the sponsor to drive the conversation with managers and align interests as much as possible. Most family offices cannot write checks north of USD 50 million. "Bundling" would enable like-minded family offices to pool their assets to create a "commingled separate account". Combining this structure with the institutional best practices that Mr. Divgi implemented at the plan sponsor would enable these families potentially to replicate the success that the plan sponsor had in generating compelling returns in this alternative investment platform (15% net annualised since inception IRR as of 31 December 2013, with inception on 15 December 2011). It is critical that these families hire an advisor who has had success negotiating with managers, executing the investment strategy, and developing the corresponding infrastructure.

- What asset types would this structure best accommodate?

It can accommodate both short- and long-duration assets, from less than one-year paper on one end to private credit and direct lending to mid-market companies on the other. Families should know in advance that this structure does not accommodate periodic liquidity (e.g. on a monthly or quarterly basis), but rather is similar to a drawdown structure with an investment period in which the capital commitment is locked up over a certain number of years.

Banks have typically dominated the private credit area, especially in Europe. Due to increased scrutiny and regulation, they can no longer lend in the same volume. As a result, many companies are starved of capital. Institutional capital can effectively replace banks as lenders of last resort. This vehicle could effectively do that either by providing a manager with capital as a limited partner or by investing directly in assets that would be managed internally post-execution. Again, it is absolutely critical that the families interested in developing this structure and platform hire a leader with success in executing such a mandate at the institutional level.

- If this concept was successful at the plan sponsor, does it mean the platform would also work in any family office?

Although there are many reasons why this platform was successful at the plan sponsor, the platform itself may not necessarily be appropriate for every family office. However, there are institutional best practices that families could incorporate in their own portfolios of alternatives to enable them potentially to replicate the plan sponsor's success to a significant degree.

About the Elite Summit 2014

The Elite Summit is the premium forum bringing top tier buyers and sellers together. Taking place at the Fairmont Le Montreux Palace, Montreux, Switzerland, 16 - 18 June 2014, the Summit offers the independent advisers of wealthy private investors and international fund and asset managers an intimate environment for a focused discussion of key new drivers shaping wealth management asset allocations. The Summit includes presentations on vision around family wealth, professionalising wealth management services in the age of FATCA, hand-picking the family office location, embracing aggregated reporting and outsourcing the family office CIO role.

For more information please send an email to [email protected] or visit the event website at www.elitesummit.com/AdiDivgiInterview

marcus evans group - investment sector portal - www.marcusevans.com/reviews/investment

The Investment Network - marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations.

- LinkedIn: www.linkedin.com/groups?mostPopular=&gid=3937929&trk=myg_ugrp_ovr
- YouTube: www.youtube.com/MarcusEvansInvest
- Twitter: www.twitter.com/meSummitsInvest
- SlideShare: www.slideshare.net/MarcusEvansInvest

Please note that the Summit is a closed business event and the number of participants strictly limited.

About marcus evans Summits

marcus evans Summits are high level business forums for the world's leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings. For more information, please visit www.marcusevans.com.

- Twitter: www.twitter.com/meSummitsGlobal
- YouTube: www.youtube.com/user/MarcusEvansGroup
- SlideShare: www.slideshare.net/MarcusEvansSummits

Source: marcus evans Summits

Contact:
Sarin Kouyoumdjian-Gurunlian
Press Manager, marcus evans, Summits Division
Tel: + 357 22 849 313
Email: [email protected]




Copyright 2014 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Any startup has to have a clear go –to-market strategy from the beginning. Similarly, any data science project has to have a go to production strategy from its first days, so it could go beyond proof-of-concept. Machine learning and artificial intelligence in production would result in hundreds of training pipelines and machine learning models that are continuously revised by teams of data scientists and seamlessly connected with web applications for tenants and users.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I will be talking about ChatOps and ChatOps as a way to solve some problems in the DevOps space," explained Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are an IT services solution provider and we sell software to support those solutions. Our focus and key areas are around security, enterprise monitoring, and continuous delivery optimization," noted John Balsavage, President of A&I Solutions, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
"We want to show that our solution is far less expensive with a much better total cost of ownership so we announced several key features. One is called geo-distributed erasure coding, another is support for KVM and we introduced a new capability called Multi-Part," explained Tim Desai, Senior Product Marketing Manager at Hitachi Data Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-securit...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, will examine the regulations and provide insight on how it affects technology, challenges the established rules and will usher in new levels of diligence...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...