Family Office Services

Investment Management & Oversite

At Persimmon Capital, we seek to preserve and maximize after-tax wealth by employing sophisticated wealth strategies and accessing differentiated manager expertise.  As a comprehensive fiduciary, we do not receive any compensation from managers or third-party providers, allowing us to provide fully objective advice when selecting the most appropriate individual managers for your tailored plan.

 Institutional Risk Management of Patient Capital:

Comprehensive Portfolio Construction

 Asset Allocation & Portfolio Creation:

Risk Capacity versus Risk Tolerance. Utilization of diverse investment strategies, both passive and active, liquid and illiquid.

 Global Access to Top Investment Management:

 

 Alternative Investments:

With over 30 years of experience servicing families seeking capital preservation as a primary objective, Persimmon Capital has been a leader in alternative investment allocations. Our focus encompasses a range of hedge fund strategies as well as manager due diligence, selection and portfolio management. Investment vehicles include:

  • Single Hedge Funds or Fund Access Vehicles with investments in multi-manager strategies
  • Private Equity and Private Debt investments both in the primary or secondary markets
  • Direct and Manager Driven investments in private real estate assets focusing on opportunistic and value-add investments
  • Source direct investments in operating companies based on client demand by working with a deep network of M&A advisors, investment bankers and valuation professionals to

 Asset Location:

Asset location, or the type of account one uses to invest in certain assets, can make a significant difference in after-tax returns, or the money one actually spends.  Taxes typically cost clients approximately 1.50% per year in performance.  At Persimmon Capital, we focus on implementing a deeply focused asset location strategy to take advantage of tax-deferred or tax-free account registrations to appropriately locate tax inefficient assets in the most tax advantageous accounts.  Four main criteria apply on whether an asset location strategy is right for you.  

  • You or a trust you control pays a high marginal tax rate.  The higher the rates the larger potential for tax savings using asset location strategies
  • You expect lower income tax rates in the future
  • You own or would like to own tax-inefficient assets based on asymmetric returns. These assets are prime candidates to be invested through more tax-efficient account structures
  • You expect to be invested over a full market cycle, or 10 years. The longer the asset location is employed, the greater potential accumulated benefits in tax-deferred or tax-free accounts

 Manager Fee Evaluation & Negotiation:

At Persimmon, we work diligently to negotiate better terms on our clients’ behalf. Simply put, we have your back, by seeking that investment managers and service providers employed adhere to our firmwide philosophy of ‘Radical Transparency’ by avoiding waste. Whether it be over-charging fees or ignoring commissions charged, we work to eliminate the fee drags that often accompany the management of affluent wealth.

 Values Based Investing:

Socially responsible investing means different things to different individuals and families. At Persimmon we work with your family to define what values-based investing means to you. Values-based investing can be incorporated at the portfolio level or in specific asset class sleeves and we help facilitate these investments in both public and private markets.

 

 

Family Advisory Services

 Family Legacy, Values & Mission:

Our team of experienced professionals help you and your family identify your values which provides a medium to draft and preserve your legacy in written or digital form. This documented legacy provides the unifying mission for the collective family and gives intentionality to managing generational wealth.

 Family Governance & Counsel:

By crafting a documented legacy and mission statement, Persimmon is empowered to construct appropriate family governance structures and education programs for your family to ensure that your defined mission and values are being consistently communicated in each decision and discussion within the family. Thoughtful planning and increasing knowledge around managing wealth ensures sustainability across generations.

 Multigenerational Family Meetings:

Our advisory team provides the assistance your family needs to facilitate a family meeting format by humanizing and personalizing the important conversations around wealth that support your family’s culture and values. By creating an open and interactive environment for dialogue between family members across various generations, Persimmon seeks to enhance listening and communication skills, supporting the engagement within your family around the responsibilities and opportunities that comes with managing significant wealth.

 Wealth Transfer Planning

 

 Fiduciary Advisory Services

 

 

 

Wealth Advisory Services

 Cash Flow & Distribution Planning

 

 Proactive Tax Planning

 

 Estate Plan Design

 

 Succession Planning

 

 Closely Held Business Planning

 

 Values Driven Philanthropic Planning

 

 Pre-Sale Business Planning

Stage One: Work with business owner to orchestrate and quarterback the initial meeting with the inclusion of all family advisors to begin structuring a coordinated, interdisciplinary team made up of Business & Estate Attorneys, M&A professionals, Investment Bankers, Tax Attorneys & Accountants, and any additional members identified. This ensures the maximum value of the business is realized for the family by involving the team in the sales process early and often to maximize the after-tax value. Succession and pre-sale planning comes with risks. It is imperative to provide as much lead time between the proposal and implementation ahead of the sale in order to combat any possible audit concerns from the IRS around certain wealth structures.

Stage Two: Pre-sale planning is unique to every business and entrepreneur. Our focus is to work deeply into the dynamics of the owner and their family. While many business and wealth advisory firms jump into deal structure first, it is our Persimmon’s primary focus to understand the dynamics and values of the family to be more thoughtful around the broad financial goals of the family beyond the sale of the business. This process starts with a detailed review of all existing corporate documents (operating, shareholder, and key employee agreements, etc.) along with any existing wealth plans and structures.

Stage Three: Focuses the team on drafting initial wealth planning proposal framed by the owner’s values, mission, and legacy goals discussed in Stage Two. In large part, the pre-sale planning conversation centers on stock or asset transfers to entities that are designed to achieve the ultimate wants and needs of the family while maximizing the after-tax value of the business.

  • The interdisciplinary advisory team will meet for a second time during this stage to discuss and debate the best planning tools available to the owner and family for the achievement of their desired outcomes.
  • Team takes into account current income tax and estate planning law to examine the business structure, maximize gifting to family members, transferring stock to philanthropic endeavors ahead of written agreement of sale, and possible large, single purchases with sales proceeds.
  • Advisory team works to establish a baseline after-tax value for the business in order to build certainty around post-sale cash flow for the family and its members to ensure adequate capital for any short-term and long-term lifestyle expenses.

Stage Four: The interdisciplinary advisory team comes together for a third meeting/discussion to finalize a tailored proposal based on the desires and needs uncovered in Stages Two and Three, with the subsequent implementation of the proposed wealth design based on the owner and family approval. Examples of certain design tools are:

  • Creation of asset protection structures
  • Private family trust companies
  • Family LLCs or LPs
  • Grantor or non-grantor dynasty trusts
  • Private Foundations, donor advised funds, and/or charitable remainder trusts.

Stage Five: In the final stage, we ensure the implementation is followed through in a thorough and timely manner with proper administration. It is critical to install governance and administration policies to safeguard the wealth planning design to ensure the entire plan is fully implemented. This is the most crucial step to ensure success of the plan and wealth stewardship of the owner and his/her family. Ongoing and consistent coordination of the interdisciplinary advisory team will make sure all tax, estate and wealth planning designs are adhered to or altered based on changes in political and economic environments.