Case Study: Providing the Solution for Today’s Wealth Advisor
April 8, 2019
PPB Capital Partners brings premier alternative investment solutions to the private wealth community nationwide. We understand that the process of investing in alternative investments is challenging. We handle all the heavy lifting so you do not have to worry about these logistical challenges. By outsourcing fund administration and daily management of your fund to PPB, you can focus on your core advisory competencies. As a fiduciary, PPB has a responsibility to your client just as you do. Your client’s investment is our main focus. Here is a common scenario of how PPB provides the solution for independent wealth advisor.
Situation: Wealth management team recently left large broker-dealer to form an independent wealth management firm. Advisor wanted access to a private equity fund who had a $10M minimum.
Challenges the Advisor faced:
- Advisor wanted to replicate the back office services that the large broker dealer previously provided.
- Advisor lacked experience in developing, launching and managing a private feeder fund internally.
- Advisor was unable to maintain operational and compliance standards of a limited partnership structure.
- Advisors needed to broaden investor base in order to achieve economies of scale.
PPB’s Solution:
- Designed and built a feeder fund and accepted a $15M of capital commitments at first close.
- Replicated the structure and terms of the underlying fund to ensure the integrity of the investment.
- Managed all daily operational responsibilities of the structure.
- Scale secured a quality network of counterparties to offer the RIA highly efficient pricing.
- Added investors through seven additional RIA firms, reduced operating costs by 3.5X and aggregated $70M of total capital commitments at the final close.
