FOUR|PARK MANAGEMENT, LLC An Introduction and Guided Discussion - PowerPoint PPT Presentation

FOUR|PARK MANAGEMENT, LLC An Introduction and Guided Discussion

EXECUTIVE SUMMARY VAST EXPERIENCE STEWARDS AND SHEPHARDS DYNAMIC STRUCTURE We We co collab aborat rate wi with our ur clie lients, s, We are We are steward ewards, servi ving ng hi high ne net Our ur stru ruct cture re is is int ntentiona nally de designe ned to to pr provide de opt ptions ns and scal calab ability. drawing on dr on ex experi erien ence ce inv nvolving ng wo worth families and ins nstitut utions ns Each of our principals is an essential component of executing a hundr dreds ds of of high hi net ne wo worth se seekin ing to to real re alize identi tified comprehensive strategy related to our client’s objectives, seamlessly fam amilies es. Our principal’s fina nanc ncial and pers ersonal al object ectives es. integrating specialties such as investment analysis and execution, legal, tax, experience spans decades, Our firm is here to provide hands- accounting and compliance services and other functions naturally includes hundreds of transactions on guidance, providing a connected to the core focus of our work. and over $60 billion of at-risk particular emphasis on alternative capital in more than 50 countries. investments and impact investing However, we do not require our clients to overburden themselves with We work seamlessly and goals. Our principals work to overly complicated or opaque workflows or team organizational charts. effectively together with our tangibly increase portfolio value Each engagement involves a process wherein our client and firm leadership global affiliates and partners. A by augmenting or taking over work together to decide which principal should be the single point of significant global network grants specific functions and roles of a contact and responsible party for all related work. That advisor then has our firm unique access to options family office. We work with our the ability to access and coordinate a global network of expertise and that allow us to more effectively clients to identify objectives and experience while at the same time transparently and clearly illustrating diversify and mitigate risk and curate solutions to meet specific costs incurred, parties involved and similar matters, overseeing without reduce conflicts of interest or goals – financial or operational. over-burdening or complicating the goals of our clients. other friction that can frustrate our collective intentions. We desire to have the client as a core player in our collective designing of the appropriate advisory team and service providers. This simply enhances COORDINATED CONFLICT-FREE SERVICES transparency and creates a more seamless and comfortable environment in which we all can work collaboratively with cost efficiency and clarity of We We ar are bo both fid iduc uciaries and nd advi visors. Our organizational structure reflects target outcomes. that philosophy. Our client solutions are customized to provide either: 1) Fiduciary or more regulated roles; or 2) Service-based and purely consultative roles. Our core objective is to deliver the most appropriate service for our clients’ needs. Our investment strategy, in line with our core objective, is to focus TRUST | TRANSPARENCY | TOTAL COMMITMENT on assets with long term capital protection & value appreciation. These are our driving principals, which build mutual trust and long-term alignment. 2

Addressing shared concerns.

COMMON OBJECTIVES AND COMMON ISSUES OVERVIEW The global high net worth families and middle-market institutions with whom we work have certain core and common objectives that are clear. Notwithstanding that clarity, they are often forced to rely on solutions providers who are in most cases structurally and fundamentally misaligned with their objectives. Our clients are chronically overserved by those who are – many times unintentionally – organized in a way that manages more to fees than performance, and plays against commonly understood objectives. COMMON AND SHARED OBJECTIVES PRESERVATION OF CAPITAL 1 Long term capital protection, accretive return and Fundamental Misalignments: advantageous tax application to create and leave wealth for Traditional advisory resources, whether succession wealth management, legal, consulting or similar professionals approach their ALTERNATIVE INVESTMENTS 2 work in a way that – even when they Reallocation to more direct alternative, private equity and have the best of intentions – naturally industry-specific investments in real estate and other assets gravitates to more expansive and fee- intensive solutions. We seek to help MIGRATION OF CAPITAL 3 our clients create teams and solutions Seamlessly allocating capital efficiently and advantageously across borders and into stable and opportunistic markets that both limit the dilution of a client’s invested, and provide intended results and quantifiable value CONTROL AND EFFICIENCY 4 Achieving a diversity of investment goals and obtaining top- tier service through a digestible system that includes aligning myriad investment, tax, legal and other areas of expertise 4

STANDARD SOLUTIONS: MISALIGNMENTS OVERVIEW Global high net worth families and middle-market institutions seek to allocate or migrate capital, or reallocate their investments, into asset classes and markets with which they are comfortable, that have reasonable fee structures and always limit conflicts of interest. Two common solutions to which they gravitate to accomplish their comprehensive goals, and the issues that can infect those solutions, are highlighted below. GLOBAL WEALTH ADVISORS Inefficient Solutions: Global wealth advisors or advisory firms are generally recognized as safe and reliable solutions that can incorporate multiple strategies and skill sets, and Although standard and accepted address a broad spectrum of issues. Indeed, many families or investors will solutions to common advisory needs conduct global searches seeking to identify the right platform into which they are most certainly available, they should allocate their capital and trust. These firms, however, have certain well- settled conflicts and inefficiencies that actually frustrate purpose. generally feature structures that when viewed objectively lack the core and IN-HOUSE FAMILY OFFICES AND ADVISORS fundamental services, philosophies or As a common alternative, families and institutional investors will often seek to capabilities necessary to truly achieve maintain control of their capital and overall costs by “disintermediating” the what can be highly nuanced client system, eliminating the control of the external advisor, and in-sourcing and developing the team and talent necessary to carry out their objectives. As with objectives that must be treated with a a global, one-stop solution, many family office and other advisory unit high level of care and attention. Our structures can suffer severe limitations in terms of expertise or depth of work is not a commodity. experience, while at the same time putting the bulk of the cost burden in the hands of the family without any economies of scale. Nor are our clients. 5

STANDARD SOLUTIONS: COMPREHENSIVE WEALTH ADVISORY OVERVIEW When viewed in more detail, it becomes clearer why a global or Standard Wealth A Advisory F y Firm comprehensive wealth advisory solution can indeed provide a comprehensive service suite, but also embed and enmesh within the Delivers a Three-Tiered and Integrated Excess Capital Spent on Lower-Tier relationship costs and fee structures that are not intended, while at the Solution Solution Providers same time walling off sufficient access to top-tier talent and guidance. INHERENT CONFLICTS 1 Large-scale, globally-integrated platforms wrap what should be agnostic services around a suite of owned investment products Core Advisory Team 90% of Value to Client 10% of Cost Layer LIMITED ACCESS AND VALUE 2 Cost structures are bloated and opaque in many cases, without the bulk of fees being allocated to the “top of the house” Primary Service Providers strategic advisors High Cost, Third-Party Unknown Value and Uncontrolled Cost Layer Personnel and Expertise Accountability INCENTIVE MISALIGNMENT 3 3 in global and integrated firms are incented to and compensated General Personnel and Providers for placing wealth into in-house, fee-heavy products that generally do not meet all expectations or goals of the investor Lower Cost, Third-Party Unknown Value and Personnel and Uncontrolled Cost Layer Accountability Administration 6