We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is Private Asset Management?

Jim B.
By
Updated: May 17, 2024
Views: 3,174
Share

Private asset management is the process by which a financial institution tracks and manages the financial assets of a particularly wealthy individual. Such individuals may have amassed a great deal of assets over the course of a lifetime but lack the wherewithal to manage all of this wealth properly. As such, these individuals may seek out private asset management to make sure that their wealth not only lasts for themselves, but also for their families and descendants. For this reason, private asset managers take care to invest the money wisely and attempt to keep it free from excessive taxation through a variety of methods.

It is common to think of asset management as being something that big businesses, which make transactions involving huge amounts of money seemingly all the time, need to undertake. There are certain individuals who come into the kind of wealth that requires asset management as well. This is because such wealth often comes from multiple sources and can be difficult to manage for anyone but a financial professional. That is one reason why wealthy individuals might seek out private asset management.

The goal of private asset management is to meet the requirements that an individual has of the wealth that he possesses. For example, some people might want to live modestly but save larger amounts for beneficiaries like family members or charities. Others might wish to be more aggressive with the wealth that they've already accumulated. As such, financial institutions that act as private asset managers tailor their services to what their clients need.

Investment opportunities are a major portion of any type of private asset management. Since the individuals in question have significant capital to invest, these opportunities often go beyond simple stocks and bonds. Private asset managers may seek out more complicated investment vehicles like derivatives to try to create the most potential profit for the client. In addition, asset managers must always be cognizant of the level of risk that the client is willing to incur before proceeding with any potential investment.

Much of the focus of private asset management is on providing for the individual after he loses the ability to continue earning large amounts of capital. Retirement income is a must for wealthy individuals, both for themselves and their beneficiaries. Private asset managers often look to estate-planning devices like trusts as a way to shield wealth from excessive taxation. Trusts are a way in which wealth can be protected and yet still grow in the future via wise investment policies.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Jim B.
By Jim B.
Freelance writer - Jim Beviglia has made a name for himself by writing for national publications and creating his own successful blog. His passion led to a popular book series, which has gained the attention of fans worldwide. With a background in journalism, Beviglia brings his love for storytelling to his writing career where he engages readers with his unique insights.

Editors' Picks

Discussion Comments
Jim B.
Jim B.
Freelance writer - Jim Beviglia has made a name for himself by writing for national publications and creating his own...
Learn more
Share
https://www.wisegeek.net/what-is-private-asset-management.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.