Ideas from UHNW Market

I met this morning with the head of a national ultra high net worth service firm in Chicago - which is really the core of their national practice. They serve clients with over $500mm and have as clients over 75% of the Midwest's billionaire families and individuals.

Their core business is estate planning strategies, family office services and setting up family investment partnerships. Business is very good and growing rapidly. They are well established and benefit from significant barriers to entry for competitors.

He made a couple of interesting observations:

- The main concern of his clients is instilling good values into their children. This is however, he said, next to impossible once a liquidity event occur. The only strategy that seems to work is addressing these issues when there is still an active family business.

This topic is a good one for HNW and wealth management marketing in general.

- One of the most successful marketing and client development tools they have developed is bringing together key executives from family offices for twice a year day or two day events. They have cut back on presentations at these events and instead work to encourage personal interactions and networking between the attendees. They have created a highly confidential environment where people can share freely.

Finally, he noted that one of the keys to their success is their background in closely-held businesses. This has grounded them in the core skills needed. He also said that, generally, the young, ultra HNW clients are almost impossible to work with. They are just "smarter then everyone else" so will not take guidance. Ah youth!