More capital can create more opportunity. It can also create more complexity.
PortfolioLab builds customized portfolios for high-net-worth investors using public-market investments, fixed income, structured investments, private-market opportunities, and sophisticated portfolio strategies when appropriate.
The objective is not to make the portfolio more complicated. It is to use a broader investment toolkit when that additional flexibility can serve a specific purpose.
High-net-worth investment management can go beyond a traditional model portfolio.
PortfolioLab begins with the same fundamental principles we apply across client portfolios: understand the investor, evaluate risk, determine the role of each investment, and build the portfolio around the client's actual financial circumstances.
For investors with greater assets, longer investment horizons, complex tax considerations, concentrated positions, or substantial liquidity, the available opportunity set can become broader.
In addition to traditional investments such as stocks, bonds, ETFs, cash, and structured notes, qualifying clients may also have access to private equity opportunities, shares of private companies before a potential public offering, and more sophisticated options strategies.
Stocks, bonds, ETFs, cash, and other traditional investments.
Strategies designed around specific income, growth, or downside-risk objectives.
Private equity, pre-IPO investments, and advanced options strategies when appropriate.
The core portfolio still comes first.
Access to alternative investments does not mean every high-net-worth portfolio should be filled with alternatives. Publicly traded securities can continue to provide liquidity, transparency, diversification, income, and long-term growth potential.
We first determine what the core portfolio should accomplish. Additional strategies are considered only after understanding how they fit within that broader portfolio.
Individual Equities
Direct ownership of selected public companies can provide targeted exposure and greater control over security selection.
Bonds & Fixed Income
Individual bonds and other fixed-income securities can be incorporated for income, liquidity, capital preservation, and portfolio diversification.
ETFs & Diversified Investments
Exchange-traded funds and other pooled investments may be used where broad or targeted market exposure is appropriate.
Structured Notes
Structured investments may provide customized payoff profiles designed around income, market participation, buffers, or other defined objectives.
Learn about structured notes →Cash & Liquidity
Cash and short-term investments can serve an intentional role for liquidity, future investment opportunities, and portfolio implementation.
Portfolio Risk Management
The portfolio is evaluated for concentration, downside exposure, liquidity, volatility, overlapping holdings, and other portfolio-level risks.
Some investment opportunities never trade on a public exchange.
High-net-worth investors may have access to certain privately offered investments that are unavailable through a traditional public brokerage account.
These opportunities can provide exposure to businesses, strategies, and stages of corporate development that differ materially from publicly traded investments. They also introduce additional risks, particularly around liquidity, valuation, disclosure, fees, and the ability to exit the investment.
Invest beyond publicly traded companies.
Private equity involves investments in businesses that are not publicly traded, often through private funds, direct investments, co-investments, or other privately negotiated structures.
Depending on the opportunity, a private-equity investment may seek to participate in business growth, operational improvements, acquisitions, recapitalizations, or an eventual sale or public offering.
Own shares before a company becomes public.
Certain private companies may have shares available through private transactions before an initial public offering or other liquidity event.
When available and appropriate, PortfolioLab can help eligible clients evaluate opportunities to gain exposure to private companies before their shares trade on a public exchange.
Private-company investing requires a different type of analysis.
Public companies typically provide standardized financial reporting and their shares trade in active markets. Private companies can be very different.
Financial information may be less extensive, transactions may occur infrequently, valuations can be difficult to establish, and shares may be subject to contractual or regulatory transfer restrictions.
Business Quality
What does the company do, how defensible is its position, and what could drive or impair future growth?
Valuation
What valuation is being implied by the transaction, and how does that compare with the company's financial performance and relevant public or private comparables?
Share Class
Different classes of private-company securities can have different voting rights, economic rights, preferences, and liquidation provisions.
Liquidity
How long might the investment need to be held, and is there any realistic secondary market if liquidity is needed early?
Capital Structure
Preferred shares, employee equity, options, debt, additional financing rounds, and other securities can affect the economics of common shareholders.
Exit Assumptions
The investment should not depend solely on the assumption that a company will complete an IPO within a particular period.
A private company may remain private for years, be acquired, raise additional capital at a different valuation, experience financial difficulty, or never complete a public offering. Private shares may also be difficult or impossible to resell.
Significant wealth can sometimes mean significant concentration.
Founders, executives, business owners, and long-term investors can accumulate substantial wealth in a single company. Selling the position immediately may create tax, investment, or personal considerations, while retaining the entire position can create significant portfolio concentration.
Depending on the circumstances, PortfolioLab can evaluate strategies designed to manage the risk of a concentrated position while considering liquidity needs, taxes, diversification, and the client's long-term objectives.
Access to private investments can depend on investor qualifications.
Certain private investment opportunities are limited by federal securities laws, offering terms, fund requirements, investment minimums, or other eligibility standards.
Two classifications frequently encountered in private markets are accredited investor and qualified purchaser. These are separate regulatory standards and should not be treated as interchangeable.
Common in private securities offerings.
Accredited-investor status can be based on financial thresholds, certain professional credentials, or other qualifying categories under federal securities rules.
A higher private-fund eligibility standard.
Qualified-purchaser status is a separate Investment Company Act classification commonly encountered with certain privately offered investment funds.
Access to an investment is not an investment thesis.
The fact that an opportunity is private, exclusive, sophisticated, or available only to certain investors does not make it a good investment.
Private and complex investments require additional analysis because the risks, costs, valuation methods, liquidity provisions, and potential conflicts can differ substantially from publicly traded securities.
Not every dollar in the portfolio needs the same liquidity.
High-net-worth portfolio construction may involve dividing capital according to when it could realistically be needed. Assets intended for near-term spending or opportunities should generally be treated differently from capital that can remain invested for many years.
Capital intended for near-term needs and opportunities.
Equities, bonds, ETFs, and other publicly traded investments.
Investments that may have defined maturities or more limited secondary-market liquidity.
Capital that may need to remain invested for an extended and uncertain period.
Complexity should be intentional.
A high-net-worth portfolio should not become complex simply because sophisticated products are available.
Each investment should have a clearly identifiable role within the portfolio, and the benefit of adding that investment should be weighed against its costs, risks, liquidity, and effect on the portfolio as a whole.
Growth
Public equities, private companies, and other investments may be used to pursue long-term appreciation.
Income
Bonds, structured investments, dividends, and certain options strategies may contribute to portfolio income.
Capital Preservation
Liquidity, high-quality fixed income, and other defensive allocations may help manage portfolio risk.
Downside Management
Portfolio construction, structured investments, diversification, or options may be considered when addressing downside exposure.
Opportunity
Maintaining flexibility can allow capital to be deployed when attractive public or private opportunities develop.
Diversification
Different assets, strategies, and liquidity profiles can be evaluated in the context of the client's overall wealth.
Build the portfolio first. Add complexity only when it earns its place.
Understand
We begin with the client's objectives, existing investments, liquidity, tax circumstances, risk tolerance, and broader financial situation.
Construct
We determine the appropriate foundation of equities, fixed income, cash, structured investments, and other liquid assets.
Expand
Private investments or sophisticated strategies are considered when they address a specific portfolio objective.
Evaluate
Each opportunity is considered in relation to valuation, risk, liquidity, fees, concentration, and expected portfolio role.
Monitor
The portfolio is reviewed as markets, valuations, investments, liquidity needs, and client circumstances evolve.
Common questions about high-net-worth investment management.
Does PortfolioLab invest only in alternative investments for high-net-worth clients?
No. Public equities, bonds, ETFs, cash, and other traditional investments can remain the foundation of a high-net-worth portfolio. Alternative and complex strategies are considered when they serve an identifiable portfolio objective.
Can PortfolioLab provide access to private equity investments?
PortfolioLab may help eligible clients evaluate and access certain private-market opportunities when available and appropriate. Availability, investor eligibility, minimum investments, custody arrangements, and other terms vary by opportunity.
Can PortfolioLab invest in pre-IPO companies?
Certain qualifying clients may have opportunities to invest in shares of private companies before a potential public offering or other liquidity event. These investments can be highly illiquid, and there is no assurance that a company will ultimately complete an IPO.
What options strategies can PortfolioLab use?
Depending on the client's circumstances and account eligibility, options strategies may include covered calls, cash-secured puts, protective puts, collars, defined-risk spreads, and other portfolio hedging or positioning strategies.
Do I need to be an accredited investor?
Certain private offerings require investors to satisfy accredited-investor or other eligibility requirements. Requirements depend on the particular investment and offering.
What is the difference between an accredited investor and a qualified purchaser?
They are separate investor classifications established under different federal securities laws. Accredited-investor status is commonly encountered in private securities offerings, while qualified-purchaser status is frequently relevant to certain private investment funds.
Read our full comparison →Are private investments less risky than public stocks?
Not necessarily. Private investments can involve substantial risk, including loss of principal, illiquidity, valuation uncertainty, limited disclosure, transfer restrictions, business risk, and long investment horizons.
Understanding private and complex investments.
Your portfolio shouldn't become generic as your wealth becomes more complex.
PortfolioLab builds customized investment portfolios that can incorporate traditional investments, structured strategies, private-market opportunities, and sophisticated portfolio tools based on the client's objectives and circumstances.
Request a Portfolio ReviewThis material is provided for general educational and informational purposes only and should not be construed as individualized investment, tax, or legal advice or as an offer to buy or sell any security. Investment availability depends on the particular opportunity, client eligibility, custody arrangements, offering terms, and other factors. Private investments may involve significant risks, including loss of principal, illiquidity, limited disclosure, valuation uncertainty, transfer restrictions, long holding periods, fees, and conflicts of interest. A private company may never complete an initial public offering or other liquidity event. Options involve risk and are not appropriate for every investor. Options strategies may involve loss of premium, assignment, leverage, substantial losses, or other risks depending on the strategy. Investors should review all applicable offering documents and options disclosures before investing. Investing involves risk, including the possible loss of principal.