1986 saw the foundation of London & Capital, established by its two founding partners and created to provide a framework for wealthy families that were time poor, drawn from the entrepreneurial, newer makers of money.
Iain Tait (pictured), Partner and Head of the Private Investment Office at London & Capital explains that these families were already well banked and well advised from a tax and accountancy perspective but needed a framework for their liquid wealth that wasn’t going back into the family business or needed for other objectives.
The original partners quickly began to offer an international service, focusing on the UK, US and across Europe and London & Capital has now grown to a business that looks after USD4 billion for first or second generation wealth generators drawn from several hundred families.
Tait joined London & Capital ten years ago and the evolution to offering the Private Investment Office service grew out of the firm’s realisation that there was a new level of service required for families that are London or UK-based, often resident non-domiciled, with larger assets, who needed a more bespoke and detailed service.
Tait calls this group ‘the forgotten rich’ with family assets of between GBP10 million to GBP200 million, putting them above standard wealth management and yet below family offices. “We felt that it was a level of family wealth that was not being particularly well looked after,” Tait says. “We realised there was a gap in the market which was not well serviced by our competitors.”
London & Capital’s Private Investment Office clients get pure investment support, without necessarily the full concierge services. They look after some 70 families and the largest ten have a dedicated investment committee and board with London & Capital representatives, regular minuted meetings, external advisors, consolidated reporting and full visibility on the level of risk within a portfolio.
“We think that the market has forgotten about this particular segment – there is a focus on the super wealthy within family offices and the mass affluent that are looked after very well,” Tait says.
His clients tend to be newer wealth and people in their 50s and 60s who are thinking about their legacy and are more comfortable of letting go. “We try and find this moment where they are happy to let outside expertise into their world,” Tait says.
The other area that has proved successful for them is looking after their fellow money managers who have made money in the investment space. “We are proud to be the investment manager of choice for those in the investment management business,” says Tait.
He notes that clients are getting younger and the transfer of wealth within a family is happening at a younger age. “You need to cater for the next generation who are interested in how their wealth is managed – the whole approach is more hands on, up to date and the clients are comfortable with technology and don’t tend to switch off so much,” he says.
“We need to be fleet of foot and nimble. We are constantly upgrading our reporting and cyber security.”