How we work with clients

Helping a UK entrepreneur with management of investment portfolio and wealth planning

Sarah, a successful UK entrepreneur generated her wealth from the sale of her business, is a sophisticated investor with a strong portfolio of Private Equity and Venture Capital investments worth close to £100m.

Sarah asked Stonehage Fleming’s Family Office team to support her with the day-to-day administration of her investment portfolio, accompanied with support on her strategic inheritance planning, and educating her children on their own financial matters.

SARAH’S GOALS

• Facilitate the smooth transfer of Family Office day-to-day activities from a long-term single Family Office team to Stonehage Fleming.
• Determine a long-term plan regarding her UK Inheritance Tax liability and lifetime gifting to her children.
• Ensure children are included in key planning meetings, particularly in relation to the Family Investment Company (“FIC”), to build an awareness and understanding of the factors influencing decision making.

OUR RECOMMENDATIONS

• Family Office team began establishing relationships with all of the relevant parties at Sarah’s Private Equity and Venture Capital investment managers and administrators to ensure a smooth transition of the day to day responsibilities.
• Assumed responsibility for a variety of reporting which includes monthly summaries of the net capital call/distributions that month, ‘live’ summaries of the funds’ most recent quarterly valuations and working with a third party accountant to produce monthly cash flow forecast summaries.
• Initiated collaboration with an investment advisor who recommends new Private Equity opportunities either for Sarah personally, or for the FIC.
• Began facilitating all key strategic and planning meetings, working with Sarah and her team of trusted advisors to proactively plan ahead and to reactively respond to unforeseen events.

OUTCOMES (TO DATE)

• Sarah has comfort in the knowledge her team of advisors are working together to protect and enhance the family wealth and that she has a clear picture of her financial affairs for ongoing decision making.
• Independent oversight of the FIC which assists Sarah to meet her fiduciary responsibilities.
• The Family Office team continue to build relationships with Sarah’s children, ensuring with ongoing engagement they will be better prepared to manage the wealth they inherit.
• As the relationship has grown we have assumed further responsibilities including our trust company, Exmoor Fiduciary Limited, being appointed as director of the FIC (alongside Sarah).
• Exmoor has also been appointed executor of Sarah’s Will and been granted Lasting Power of Attorney for Property and Finance matters.

Disclaimer: Please note, all case studies have been carefully anonymised. Although scenarios are based on real life events they have been fictionalised and are an amalgamation of client experiences. All names, locations and occupations have been replaced with pseudonyms.