Establishing Family Office
Sector
Private Equity
Title
Partner
Location
USA
The Situation
The client worked at a large private equity fund that was underperforming with little hope of realizing the value of his carried interest. He had the opportunity to leave traditional investing to establish and lead the investment activities of a wealthy family with more than $1.0bn in assets. Charlie was asked to assess the opportunity as well as serve as a third party to structure and evaluate the compensation arrangements.
The Process
Charlie and the client discussed in detail the ramifications of such a change on the client's future employability in private equity, the pros / cons of the initiative, and potential challenges the client needed to stay ahead of. Furthermore, Charlie offered detailed feedback on the legal and compensation agreements that formed the foundation of the family office's partnership with the client.
The Result
The client successfully reached an agreement to establish the family office and to lead the management of a significant portion of their wealth. The client secured compensation commensurate with senior private equity investment professionals with full alignment of interest and upside to create his own generational wealth.