Tuesday, December 15, 2015

Burgeoning fortunes: Seeking sound financial advice from family offices

Family offices serve as curators of the wealth of high-net-worth individuals (HNWI), their families, and their heirs. Services they typically offer include wealth planning, tax and legal services, asset management and consolidation, asset performance monitoring, trusteeship, risk management, and even charity services. Depending on the client’s personal preferences, additional services may also be offered, such as arranging business trips, providing insurance solutions, building an investment portfolio (usually in private equity), or managing real estate.

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Ultimately, it is the client who decides exactly how the family office will serve him and his family. The family office works on a variety of roles which give them flexibility in accordance with clients’ desires. They can invest the money themselves or manage their clients’ relationship with banks, investment companies, and other financial institutions. They can manage all of the family’s assets or only a portion of them. They can also be responsible for current or future disbursement of payments to family members.

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A family office can take on high-level investment strategies on behalf of their clients. They can be given the power to design the family’s corporate (holding) and private investment structures as well as assist in setting up wealth protection or other wealth planning blueprints.

Amit Raizada is a known figure within the national financial landscape and has enjoyed remarkable success. He is the founder of Spectrum Business Ventures Inc. (SBV), a company that offers unique business opportunities for family offices, high-net-worth individuals, and institutional investors. For more information, visit this website.

Monday, November 2, 2015

Stronger capital structure: The need for a leveraged recapitalization

In a leveraged recapitalization, a company changes its capital structure by replacing equity (stocks) with increased debt. The transaction becomes “leveraged” because the company issues bonds to pay dividends and provide cash to shareholders without requiring a total sale of the company.

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Companies that implement leveraged recapitalization benefit from some kind of tax shield and cash discipline as this would effect a significant reduction in active cash flow. Moreover, it makes the firm less vulnerable to a hostile takeover.

Leveraged recapitalization can serve as a turning point in the business process, in which internal change is an inevitable result. This includes the establishment of a new objective, changes in compensation systems, and reorganization of manufacturing and capital budgeting processes. The system effectively illustrates how financing decisions can impact organizational structure, management decision making, and business value.

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To speed up approval from the board for leveraged recapitalization, owners often offer investors the option to trade their holdings for a different class of securities of the firm. The only downside of this system is that the company might lose its strategic focus as stronger emphasis on bonds normally addresses “current” challenges and generates income from short-term projects.

Amit Raizada, CEO and founder of Spectrum Business Ventures, designs and builds business plans and growth strategies. His company’s holdings include assets and investments from a wide range of industries. For more about the company, follow this link.

Tuesday, July 14, 2015

Eliminating the sustainability conundrum of high net-worth individuals

Social impact, credit rating, and investment performance are critical factors in determining the sustainability of high net-worth individuals’ (HNWIs) asset preservation potential. Just like any other wealth-building vehicles, HNWI investments are subject to market fluctuations and specific risks. However, with proper financial planning and strategies, undesirable results can be mitigated, if not eradicated.

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Sustainability is what HNWIs need to remain in their status. Doing so is not easy and requires strong commitment, perseverance, and research. Included in the equation is a good credit rating and security against identity theft. Wealthy people, naturally, are the most common targets of high-profile fraud, whether in a conventional setup or online.

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High net-worth investors might also need to consider their social impact as a critical factor in preserving their wealth and keeping losses at bay. It also has the potential to identify investment opportunities on which to place their money. Those that are directly affected by their profile in their respective fields are particularly good resources to tap into (celebrities investing in social media is a good example). All they need is a person to turn to for advice on opportunities and execution.

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The ultra-high net-worth community—composed of elites whose investible assets reach or exceed $40 million—are the primary driver for growth within the high net-worth wealth segment of the economy.  

Amit Raizada has spent his career dedicated to providing solid investment strategies for diverse high net-worth clients, and has enjoyed a remarkable level of success. Visit this website for more on his career accomplishments.

Wednesday, May 27, 2015

Beyond creating value: What sets family offices apart from other governance structures

Family offices were established to help ultra-high net worth investors manage their assets more effectively through customized solutions and well-studied investment trends. Family offices manage just about everything for affluent families: estate planning, tax planning, investment management, philanthropy, luxury collections, and even their vacation.

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Family offices became popular in the 1800s, with tycoons such as the Rockefellers needing to outsource the management of their growing portfolio. The offices offer almost the same services as top-tier private banks and wealth managers but are generally more flexible and focused.

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Family offices not just provide customized financial advisory, but also foster family harmony by creating better communication among members. They help the business serve as a platform in keeping the family together and strengthening agreed-upon goals for the future. In other words, the family culture is the business culture. Family offices protect family values and traditions while helping clients keep up with changing market trends.

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Family offices manage assets with a broader range of complexity, encompassing areas such as conglomerate initiatives, investments in businesses managed by others, and partnerships or passively managed assets. Such intricacy and density of responsibilities help owners and the management make sound decisions and strive for quality.

A family office founded by Amit Raizada, Spectrum Business Ventures manages a highly diversified portfolio of investments across the country. Visit this website to know how the company could help you manage your assets.

Tuesday, February 3, 2015

Key advantages in multifamily real estate development

Typically found in more densely populated urban areas, multifamily real estate comprises an assortment of housing options, which involve many households living together in units within the same property. A perennial staple of city living, the multifamily home has resonated with investors like Amit Raizada and Spectrum Business Ventures for a number of excellent investment reasons.

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Prospective investors in rental real estate are often greeted with the promise of constant cash flow and relative market stability in owning a rental property, all of which guarantee a hedge against upkeep and renovation expenses and a rapid return of investment. For smaller investors, a single-family home, with its higher rate of appreciation and lower initial investment, seems ideal.

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However, the property can only maintain cash flow if it is occupied. Single-family homes, though more popular with mature demographics such as growing families, have a key disadvantage in that they lose their cash flow buffer when they are vacant.

Multifamily homes, even when partially occupied, provide some cash flow, which can cover expenses in part. Although many multifamily buildings are more popular with single adults and smaller families, many others, particularly larger developments, have sufficient public space to attract larger family occupants.

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Multifamily properties, in spite of their higher overall capital investment, also have a few other advantages in terms of value. Under-rented properties (and those with improvements made to them) rise in value steadily, making up for their initial disadvantage in gradual appreciation to single-family buildings.  

For more on the investments under Amit Raizada’s company, visit this website.