America’s wealth looks quite a bit different than it did several decades ago. The top 1% of this country is making so much money that some of those resources are actually beginning to trickle down to the next tier of investors. If you look clear back to the early 1900’s and consider the richest families, they already had their own methods of maintaining, growing and distributing their wealth. Families like the Rockefeller’s and the Carnegie’s employed personal staffs of financial advisers and investors to help them manage their wealth.
Some of today’s wealthiest individuals employ their own investment advisers as well. Family offices is the term that most individual investors use for the people who manage investments, diversify portfolios, make philanthropic suggestions, and even manage unusual collections and plan for permanent family vacation locations.
Prime brokerage services for family offices market themselves as having better execution, better tools and better offerings than discount brokerage services that might be used by smaller investors. By offering their best investment advise, these prime brokerage services for family offices are accustomed to providing the leading investment advice.
One of the things that prime brokers offer to their customers is updated information about upcoming Initial Public Offerings (IPOs). The year 2015 was predicted to be the best year for IPOs since 2000. As a result, prime brokerage services for family offices were especially busy helping their clients make the most of this record breaking IPO year. For example, IPOs are especially helpful to those investors who have the resources to purchase very large amounts of initial stock shares before they are offered to the general public. hedge funds and investment institutional investors willing to buy large quantities of a stock before its debut. Funding and logistics is provided by hedge funds and investment banks, which allows companies to earn the much talked about triple-digit gains
Every investor knows that individuals can not invest in the stock market without brokerage firms. Family offices know that they can not make the most of IPOs and other quick turn around investment opportunities without prime brokerage services. Although not common before the 1990’s, the IPO term is nearly considered everyday language now. Are they part of your vocabulary? More importantly, are they part of your portfolio plan? If not, perhaps it is time for you to take the next step in the financial world.
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