How do you define a rewarding direct investment experience?
- Growth in your investment portfolio?
- Engagement with your family and community?
- Flexibility to do what you enjoy most?
Our experiences in both stable and volatile economic conditions have made one thing clear to us: Families should build Direct Investment Programs and not just collect a portfolio of direct investments.
Over the past decade, we’ve become keenly aware of what drives a family’s direct investment behavior during both strong and weak economic conditions. We learned how important the path of a family’s direct investment experience is throughout the search, ownership and exit process. For example, we learned that many families struggle to say no to deals that do not align with their interests when a family friend is involved. We learned that the opportunity cost of capital being permanently lost or stuck is real.
Most importantly, we learned that direct investing can drive a wedge between family members that is often difficult to heal. We’ve seen firsthand how multiple risks and errors can compound into a breakdown of a once successful direct investment portfolio. These experiences have taught us that successful direct investing goes far beyond the portfolio.
Our greatest takeaway? The holistic and disciplined alignment of a program’s purpose, people, processes, portfolio and performance is essential to create a rewarding direct investment experience.
Our professional experiences led us to create the V3 5-Part Direct Investment Program Road Map. This framework helps families potentially move from a portfolio mindset to a Program mindset. Understanding the ultimate purpose of investing, where each family member and stakeholder fits in, and how future generations will adapt and thrive makes for a potentially smoother and more rewarding experience.
Our hope is that you consider using our framework to build a successful Direct Investment Program and avoid the dangers that lurk just under the surface of the high-potential direct investment opportunities you pursue.
We are here to help you and your family plan, build, evaluate, monitor, and strengthen your Direct Investment Program. Our strategic approach was developed to help reinforce the glue that binds your family together and to support you build potential generational wealth with your Direct Investment Program.
The allure of potential outsized direct investment returns is real, but so are the risks. We encourage you to consider the benefits of a program over a portfolio mindset.
Todd Kellerman & Tim Wray
The direct investment process is infinitely complex. The mutual families we serve can easily pay excessive financial and emotional tuition trying to create rewarding direct investment experiences for their families. There are endless choices from investment opportunities to management teams, deal terms and technologies to service providers, and more. Identifying the right people and firms is paramount to avoid pitfalls, reduce the learning curve and ultimately build a scalable Direct Investment Program. We pride ourselves on the professional network that we work with in delivering value to our clients.
To the experts we work with, we appreciate and respect the value you bring every day. We look forward to creating more value together for our mutual clients.
Todd Kellerman & Tim Wray