Private business owners who hold the majority of their wealth in one company are different from other investors. They face unique challenges when making investment decisions, including the fundamental question of whether to retain a concentrated position in their business. In this paper, we share some key questions business owners can ask themselves to help arrive at answers best suited to their own unique needs.
The Build Back Better Act recently introduced in the US House of Representatives includes many tax provisions that would significantly impact US taxpayers. However, any major bill’s road from introduction to enactment is typically long, winding, and unpredictable. This note summarizes four tax planning–related questions we view as prime candidates for consideration by US families with substantial wealth, notwithstanding that uncertainty.
Building a portfolio that incorporates both private equity and venture capital investments is not straightforward. It requires skill and discipline. In this paper, we review recent private investment performance, discuss how these investments have benefited institutional portfolios, and provide some high-level tips on how to build winning portfolios.
When Cambridge Associates began working with private investors and families 40 years ago, we applied the same investment philosophy and many of the same investment principles that have underpinned our approach to managing investment portfolios for some of the world’s leading institutional investors. Key tenets, such as a long-term time horizon, an explicit bias toward…
As we all grapple with the COVID-19 pandemic alongside widespread protests after the deaths of George Floyd and others, many asset owners are trying to determine how they can activate their investment portfolios to advance racial and social equity more broadly. We’ve identified three steps investors should take to help address racial inequities in an investment context.
This paper summarizes the mechanics and treatment of GRATs, their heightened appeal right now, and the key tax, legal, and investment considerations to explore before implementing this strategy.
Families of wealth face three key questions about intergenerational wealth planning: how best to invest to sustain future generations; how best to engage the next generation; and how best to ensure family unity endures. Often each question is addressed independently. We find that a conversation across generations about the impact of a meaningful venture capital allocation can help address all three questions in an integrated manner.
Families with multigenerational wealth may be particularly well positioned to consider allocating 40% or more of their assets to private investments. Assuming these families have the requisite long-term time horizon, patience, and ability to act quickly, they stand to benefit not only from the potential for higher returns but also from the tax-advantaged nature of private investments. Life could get better after 40%!
With a gender lens framework, investors can positively impact gender imbalances via their portfolio management choices; this paper provides tangible investment themes and implementable strategies.
There is perhaps no better time for social equity investing. Many institutional investors have long sought to promote social equity through grant making and other philanthropic endeavors. With the field of impact investing maturing, these institutions are now increasingly seeking investment solutions to accomplish the same goal. In this paper we review the current state of social equity in the United States, highlight eight core social equity issue areas, and discuss the lessons we’ve learned in constructing portfolios with these investments. While investors need to be mindful of risks, we believe that investments can be made to promote a social equity impact agenda across the portfolio.