We met with him in San Francisco, prepared to discuss single stock risk management as he requested. But once we arrived, we knew we needed to look at Stewart’s needs and situation through a wider lens. To gain greater insight into addressing the full scope of the sale, we reviewed Stewart’s near-term and long-term goals, the structure of his company, the history of his business and his current personal holdings.

The strategy
Given the imminent timing of the sale, and the complex tax structures of his existing holdings, our goal was to pull together a specialized team whose combined experience would help us deliver the best possible strategy for Stewart in terms of tax, risk and investment oversight. We introduced Stewart to our Private Wealth Management Advanced Planning Group along with several Estate and Trust attorneys to clarify his objectives and the possible tax consequences of a number of approaches he might consider.

Our team’s guidance was comprehensive. Working with the attorneys, we assessed the structures of his many irrevocable and revocable trusts, charitable remainder trusts, lead trusts and limited partnerships. In addition, Stewart emphasized that he did not want to invest in equities, although he did seek growth opportunities. We showed him several ways he might achieve this goal, but more importantly we wanted him to understand the associated risks of those portfolios.

Our continuing relationship
Post sale, Stewart remained engaged in technology opportunities. Family Enterpise Partners network of entrepreneurs and our deep understanding of each client or center of influence enabled us to introduce him with other like-minded persons who shared his interests. Eventually, the group started a company that went public and later was sold for several billion dollars. We’ve also helped Stewart finance a yacht purchase he researched through client contacts we provided.

Stewart’s needs turned out to be more extensive than just the management of his concentrated stock position. That’s why we go beyond what our clients expect. Our recommendations are based on the macro view, since wealth management isn’t a single transaction, but a holistic progression over time.

The case study presented, based on actual client experiences as told by our Private Wealth Advisors, is provided as an illustration and may not be representative of the experience of other clients. There is no guarantee of the future success of any of the strategies discussed. It is important that you understand the ways in which we conduct business and the applicable laws and regulations that govern us. As a firm providing wealth management services to clients in the U.S., we are registered with the U.S. Securities and Exchange Commission (SEC) as an investment adviser and a broker-dealer, offering both investment advisory and brokerage services. Though there are similarities among these services, the investment advisory programs and brokerage accounts we offer are separate and distinct, differ in material ways and are governed by different laws and separate contracts. It is important that you carefully read the agreements and disclosures that we provide to you about the products or services we offer. While we strive to ensure the nature of our services is clear in the materials we publish, if at any time you seek clarification on the nature of your accounts or the services you receive, please speak with your Private Wealth Advisor. For more information, please visit our website at ubs.com/workingwithus. Borrowing using securities as collateral entails risk and may not be appropriate for your needs. All loans are subject to credit approval. For a full discussion of the risks associated with borrowing using securities as collateral, you should review the Loan Disclosure Statement that is included in your application package. Neither UBS Financial Services Inc. nor UBS Bank USA provides legal or tax advice. You should consult your legal and tax advisors regarding the legal and tax implications of borrowing using securities as collateral for a loan. Neither UBS Financial Services Inc., its Private Wealth Advisors nor other employees provide tax or legal advice. You should consult with your tax and legal advisors regarding your personal circumstances. UBS Financial Services Inc. is a member of SIPC.

© 2018 The key symbol and UBS are among the registered and unregistered trademarks of UBS. Images may depict objects or elements which are protected by third-party copyright, trademarks and other intellectual property rights. All rights reserved. Private Wealth Management is a business unit within UBS Financial Services Inc.

Our conversation revealed that no one advisor relationship had a complete understanding of Zachary’s entire financial picture—no one was monitoring overall asset allocation at the family level, correlation of the managers or asset classes, tracking error of the overall portfolio, or competitive managers’ performance.

The strategy
After reviewing Zachary’s legal structures, we concluded that he was generally well positioned, but his portfolio desperately needed oversight and integration. We worked with his existing attorney.

We then combined all assets into one consolidated format and performed an in-depth review. In order to bring the family inline with their goals, we suggested dismissing some managers and diversifying with several components missing from their portfolio—in particular, commodities and private equity.

We also agreed to review some insurance proposals Zachary received from his insurance advisor. We determined that some of his insurance was unnecessary, and further, through the UBS Insurance Network, were able to quote lower premiums than he was shown.

Our continuing relationship
Zachary no longer maintains multiple advisors. He has deepened his relationship with us. In fact, our team has captured all of his inflow of capital over the last several years. We have subsequently established credit lines for real estate acquisitions, provided valuation expertise in several markets they were interested in, ran educational meetings with the entire family, and opened and continue to manage accounts for his children. Recently, we introduced corporate (institutional) services to Zachary’s CFO to establish programs for existing employees.

The case study presented, based on actual client experiences as told by our Private Wealth Advisors, is provided as an illustration and may not be representative of the experience of other clients. There is no guarantee of the future success of any of the strategies discussed. It is important that you understand the ways in which we conduct business and the applicable laws and regulations that govern us. As a firm providing wealth management services to clients in the U.S., we are registered with the U.S. Securities and Exchange Commission (SEC) as an investment adviser and a broker-dealer, offering both investment advisory and brokerage services. Though there are similarities among these services, the investment advisory programs and brokerage accounts we offer are separate and distinct, differ in material ways and are governed by different laws and separate contracts. It is important that you carefully read the agreements and disclosures that we provide to you about the products or services we offer. While we strive to ensure the nature of our services is clear in the materials we publish, if at any time you seek clarification on the nature of your accounts or the services you receive, please speak with your Private Wealth Advisor. For more information, please visit our website at ubs.com/workingwithus. Borrowing using securities as collateral entails risk and may not be appropriate for your needs. All loans are subject to credit approval. For a full discussion of the risks associated with borrowing using securities as collateral, you should review the Loan Disclosure Statement that is included in your application package. Neither UBS Financial Services Inc. nor UBS Bank USA provides legal or tax advice. You should consult your legal and tax advisors regarding the legal and tax implications of borrowing using securities as collateral for a loan. Neither UBS Financial Services Inc., its Private Wealth Advisors nor other employees provide tax or legal advice. You should consult with your tax and legal advisors regarding your personal circumstances. UBS Financial Services Inc. is a member of SIPC. © 2018 The key symbol and UBS are among the registered and unregistered trademarks of UBS. Images may depict objects or elements which are protected by third-party copyright, trademarks and other intellectual property rights. All rights reserved.

Private Wealth Management is a business unit within UBS Financial Services Inc.