From entrepreneur to financial investor
As an entrepreneur, Peter* is used to risks. But after selling his company, he is suddenly facing other challenges. His job now is to manage his financial assets. In the process, he discovers many common places to being a business owner.
Just like many other entrepreneurs, Peter was so focussed on growing his company and neglected the management of his private wealth. Although Peter already relied on the services of an asset manager for a bit over CHF 1 million of his wealth, wealth management was not relevant for Peter and his wife up to the moment he sold his company for CHF 8 million.
Not surprisingly, after the company was sold Peter was contacted by a long list of banks and wealth managers and invited to a variety of events. There he found out about all sorts of offers. The difficult part now was differentiating between empty promises and truly good offers. It was around this time that he read an article about ZWEI Wealth.
ZWEI Wealth developed a set of investment rules with Peter and his wife. Just like an entrepreneur, it was important to clearly define their goals and select a suitable strategy. From all of these considerations, an architecture emerged essentially comprising of three portfolios: a portfolio to ensure the liquidity needs, an entrepreneurial portfolio with equity investments and an impact portfolio. A request for proposal on the ZWEI tender platform helped identify a suitable wealth manager for each portfolio.
Today, Peter delegates the management of all his portfolios. He concluded that he would much rather focus on setting the strategic course than deal with the day-to-day management. Each quarter, Peter meets with the responsible managers and once a year the investment committee meets with him and his wife.
« I think it’s really important to have ZWEI Wealth on my side. Now I can act freely and decide professionally. »
Facts & Figures
- Assets of CHF 9m
- Developed comprehensive investment rules
- Peter obtained a clear understanding of his role and a quarterly reporting structure was established
- Received offers from 32 wealth managers and banks
- Selected three new wealth managers
- Once a year an investment committee meets with Peter and his wife
- Annual management costs are 58% below the market average
* Name changed
This is a case study of a real-life client case.