Does Investing always have to be dull – particularly in these Covid 19 home bound times? And can the more interesting ‘investment’s’ actually work? Two questions we find High Net Worth individuals (HNW) and mid sized Family Office often ask themselves.
The reason we hear, is that often in some shape or form the investment monies are still the directly earnt funds of the HNW or family office. In generating those funds the respective members have typically, we find, worked really hard to build a business and enjoyed a great lifestyle that the benefit of their efforts deserve. And in achieving this they have taken risk but had fun. Consequently we regularly find that these groups still want to maintain an association with life’s pleasures as they see them despite not having the ongoing levels of their previous business lead income.
Typical investments, as we know, are quite dry and combined with that often exceptionally down at heel in the current landscape.
It is perhaps where a passion might come into the investment mix, adding not just a basis for investing in higher returns, but also, potentially, the added benefits that might be derived from being active in the field.
Now with all of these ‘passion investments’ there is risk: Obviously investing in a standard (even super luxurious) sports car, painting or yacht is unlikely to drive returns, more likely a depreciation of value
The Alternative
Change the scenario though and invest in exceptionally rare pieces, if one can afford it directly, and let time and enjoyment takes its course.
Perhaps better and for the majority of even this group is to ‘invest’ through well run proven structured products. In this situation the assets back the ‘investment’, and the assets themselves are either very rare and therefore ‘almost’ certain to appreciate or better still super premium but can be purchased at lower than proven market value. In these situations the returns can be very real.
Investing In your Passion
Added to this the benefit of being, by the very nature of being a passion and enjoyment based ‘investment’, in an informal ‘club’ of like minded people may allow for additional benefits. These might typically be outside of any formal agreement but exist by virtue.
Afterall who could refuse an opportunity to partake in some way with your ‘invested passions’ for example only: a glass of champagne and lunch on a super yacht in Monaco, or a tour of a selection prestigious and rare cars, a visit to a private gallery of outstanding art?
Clearly these ‘investments’ require the expertise of an experienced team who know both the true value of the asset and how to sell them through established partners and routes. It also requires the trust relationship to be based upon solid foundations, such as those working under the rules and regulations of the UK Financial Conduct Authority. Berkeley House Capital limited is one such business.
An opportunity to engage your passion and for higher returns from Alternative Assets seems to us a great way to go.
If you are a Wealth Manager, IFA, Family Office or Finance Professional and would like to know more about our investment products and/or services, send us and email to arrange a convenient time to discuss.
If you would like to discuss any aspect of this note please feel free to email: charlotte@berkeleyhousecapital.co.uk and one of the team will be very happy to arrange call with you.
www.berkeleyhousecapital.co.uk
12 Hay Hill, Mayfair,
London. W1J 8NR
United Kingdom
+44 (0) 207 863 7507
1. Berkeley House Capital is an Appointed Representative of Alternative Asset Management Ltd which is authorised and regulated by the Financial Conduct Authority (No. 450404). Not all of our activities are regulated by the FCA, further details are available from us on request.
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