Case Study: Stewardship of Capital


A multi-generational family sold their 50+ year family business, resulting in significant liquid capital. Ownership of the family holding company was shared between generations and it would be necessary to generate income to address the lifestyle needs of the family members.  There was some discord between members of the second generation regarding legacy and philosophy.

To assist them in addressing this disagreement, it was determined that a robust governance structure should be established. Prime Quadrant worked with the family, both collectively and individually, to understand both shared family objectives and differences.  The governance structure was developed to address the ownership roles within the family holding company and included a definition of roles and responsibilities, communication policies and conflict resolution remedies.

Prime Quadrant also assisted the family with alignment of the goals and objectives for their shared portfolio, balancing lifestyle income needs with the desire for a legacy across many generations.  An investment policy was developed to allocate capital across all asset classes and better address the family's need for consistent cash flow.

* This case study is not a statement of a client’s experience with our firm (not a client testimonial), but rather is derived from our firm’s experience and is offered for educational and illustrative purposes only.  We do not know whether clients on whom these case studies are based approve or disapprove of our services.