Our process includes a Family Constitution, a Family Investment Philosophy and an Investment Policy.
The i3 formal process begins with a series of face-to-face meetings. We construct a Family Profile which includes a Family Constitution, a Family Investment Philosophy and an Investment Policy.
A Global Balance Sheet and Global Cash Flow Summary are created for review. The documents provide a comprehensive financial inventory and ten-year forecast for projected income generation for family members or related beneficiaries.
After establishing the family’s asset base and Global Cash Flow, we establish the family’s needs through a Family Needs Assessment. The family’s financial needs are then overlaid on the family’s Global Cash Flow Summary.
Last, an Asset Performance Management Summary is prepared and includes a detailed assessment and historical performance review of private assets owned by the family and recommendations for new strategies. This report provides a schedule of private assets and identifies where opportunity may exist to generate income for the family.
After documenting the family’s profile, gathering details on the family’s assets, constructing the family’s global cash flow and inputting the family’s needs, we integrate Resources and Reporting using i3’s access to information, infrastructure and investment.
The process of working within a dual, complex family dynamic — one including a legacy family business and assets requiring distribution — can create multiple additional challenges if handled poorly.
i3 played a key role as the Family CFO and Mediator for a family group* with a variety of needs: one member desired an exit strategy; another hoped to create new wealth from an underutilized asset. Others had no interest in participating in wealth growth through the family business, but requested equal disbursement of wealth. There was a history of a litigious relationship between multiple members.
Following in-depth interviews and needs assessment, i3 created a solution equitable to and accepted by all participants.
*The confidentiality of our clients is of the utmost importance. All Case Studies are reviewed and approved by the subject client.