Client Overview

A seasoned investment management executive approached Provenio Capital to optimize and expand their family’s investment portfolio. With a net worth exceeding $100 million and a complex international situation, the client sought a tailored strategy to enhance diversification, simplify oversight, and address multigenerational planning. Over the years, Provenio has worked closely with the client to build a robust alternatives portfolio, customize asset allocation, and streamline their financial landscape through collaboration with a family office services partner.

Client Goals

1. Expand Alternatives Portfolio: Increase exposure to high-quality alternative investments for enhanced returns, diversification, and income generation.

2. Optimize Asset Allocation: Develop a customized asset allocation strategy across personal, generational, and tax-deferred accounts.

3. Simplify International Oversight: Streamline management and reporting of complex global financial structures.

4. Integrate Family Office Services: Enhance the families' operational efficiency by integrating trust company services and establishing a dedicated family office partner.

5. Establish a Seamless Wealth Transfer Strategy: Ensure multigenerational wealth preservation with tax-efficient estate planning.

6.  Improve Tax Efficiency: Address tax challenges across multiple jurisdictions and build out a plan to generate tax-efficient income streams.

Challenges Identified

• Fragmented Portfolio: Limited exposure to high-quality alternative investments.

• Complex International Holdings: Required specialized reporting and compliance solutions.

• Coordination Across Multiple Entities: Managing various advisors, family trusts, and tax structures efficiently.

• Tax-Efficient Structuring: Need for a cohesive strategy to optimize tax-deferred accounts and generational wealth planning.

Provenio’s Approach

Provenio Capital implemented a phased and customized strategy to address the client’s unique needs:

1. Building a Robust Alternatives Portfolio: Designed a dynamic, goals-based asset allocation strategy that evolved alongside the client’s priorities and market conditions. Gradually allocated 25–30% of the portfolio to high-quality alternatives, including venture capital, private credit, real assets, and real estate, rebalancing as the family’s net worth has evolved overtime. 

2. Simplifying International Complexity: Connected the client with a premier family office services provider and trust company to streamline intricate international financial and tax structures. Implemented a unified reporting system, consolidating all global and domestic accounts for a real-time, comprehensive view of the client’s total portfolio—enhancing clarity, control, and strategic decision-making.

3. Multigenerational and Tax-Deferred Planning: Built out tailored investment strategies for generational trusts and tax-deferred accounts, aligning with the family’s long-term goals, and coordinated with estate attorneys and trust company to guide wealth transfer and tax efficiency. As part of this strategy, an Investment Policy Statement was designed for the children’s trusts, prioritizing high-growth, long-term investment opportunities in pursuit of building lasting wealth.

4. Tax Efficiency Optimization: Implemented strategic asset placement to maximize tax efficiency across jurisdictions, such as leveraging Private Placement Variable Annuity (PPVA) for philanthropic giving, and pairing the correct investment and tax characteristics to the most suitable entities.

5. Proactive Retirement Income Planning: Designed a long-term strategy for financial security and sustainable income throughout retirement. Integrated structured distributions from alternative investments to align with the client’s lifestyle needs, with a focus on tax-efficient income. 

Moving Forward

Provenio continues to work closely with the client to:

• Monitor and adjust the alternatives portfolio as new opportunities arise.

• Refine international tax strategies to address evolving regulations and compliance needs.

• Expand generational planning to include philanthropic initiatives and additional trusts.

Disclosures: The case studies presented on this site depict the strategies employed by Provenio, are based on a point in time and are representative samples of an actual client implementation whose circumstances are different from yours and are thus being presented for illustrative and informational purposes only, and accordingly should not be relied upon in making any investment decision, as past performance should not be taken as an indication or guarantee of future performance. The numbers presented are not actual client numbers but are based on an actual client's situation. By receipt of this case study, you hereby acknowledge that no recommendation, representation, express or implied, is made regarding future performance or that Provenio’s investment or risk management process will be successful, follow this process or match the results depicted in the case studies on this site. Recommendations made throughout the case studies are based on the original implementation strategy and should not be considered a recommendation to any recipient.