We help investment managers maximize personal wealth by protecting fee revenue streams and compounding investments in a tax-efficient manner.
Why You Should Care
Few ever come close to managing all of the risks that they are personally exposed to. To do so would be prohibitively expensive and probably require a crystal ball. If an event does occur, the hope is that cash reserves are enough to cover the associate cost – but as time has proven on many occasions, it often is not: Resources
This approach of pay-as-you-go is often called “Self-Insurance”.
“Captives are utilized by more than 95% of the Fortune 1000. In aggregate, ~10,000 captives exist in the world today.”
When structured properly to conform to regulatory, tax and accounting issues, it is called Captive Insurance – and there are roughly 10,000 “captives” in the world, covering 95% of Fortune 1000 companies.
Captive Insurance is a tool providing a myriad of solutions – not only as a more efficient means of managing a range of insurance needs, from mundane property and casualty to much larger potential existential exposures – but also to help investment managers create a cushion against “run-on-the-fund” risk (even if it is performance-related).
Additionally, in many situations Captive Insurance can be used as a vehicle enabling fund managers to more efficiently compound wealth, or make a charitable donation while still maintaining control over the gifted assets.