News Feed Item
What Family Offices Can Learn from Institutional Investors
|By ACN Newswire
|May 18, 2014 03:58 AM EDT
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
Press Manager, marcus evans, Summits Division
Tel: + 357 22 849 313
Email: [email protected]
Copyright 2014 ACN Newswire. All rights reserved.
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure.
In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
Jul. 26, 2016 09:00 PM EDT Reads: 2,013
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud.
Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
Jul. 26, 2016 08:30 PM EDT Reads: 2,130
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity.
In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Jul. 26, 2016 08:00 PM EDT Reads: 274
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
Jul. 26, 2016 07:15 PM EDT Reads: 1,925
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., and Logan Best, Infrastructure & Network Engineer at Webair, focused on real world deployments of DDoS mitigation strategies in every layer of the network. He gave an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He also outlined what we have found in our experience managing and running thousands of Linux and Unix ...
Jul. 26, 2016 07:00 PM EDT Reads: 1,795
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t.
Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Jul. 26, 2016 06:30 PM EDT Reads: 787
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 26, 2016 06:30 PM EDT Reads: 2,112
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Jul. 26, 2016 05:45 PM EDT Reads: 1,822
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time.
Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Jul. 26, 2016 05:30 PM EDT Reads: 395
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 26, 2016 05:00 PM EDT Reads: 1,474
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
Jul. 26, 2016 05:00 PM EDT Reads: 1,166
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently.
In his session at @ThingsExpo, ...
Jul. 26, 2016 04:30 PM EDT Reads: 1,011
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications.
In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day.
He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Jul. 26, 2016 04:30 PM EDT Reads: 1,080
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data.
In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jul. 26, 2016 04:00 PM EDT Reads: 1,027
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases.
In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Jul. 26, 2016 03:45 PM EDT Reads: 1,716