Case Studies
Optimal Capital distinguishes itself by thoroughly understanding our clients and
having the experience, expertise and relationships necessary to craft fully integrated
solutions that exceed expectations.
Here are several illustrations of how our financial planning, investment advisory and
family office services have been employed to accomplish varying client objectives.
(Client anonymity has been protected).
Case Study 1- Liquidity Event
Case Study 2- Non-profit Endowment Fund
Case Study 3- Generational Wealth Transfer
Case Study 4- Institutional Partnership
-Liquidity EventSale of Family Business
Client Circumstances
A successful family owned business with multiple owners was sold to a public company.
Restricted stock was received in consideration for the sale. This liquidity event triggered the
need to transition from operating a growing company to securing the family wealth and
implementing multiple investment strategies for each family group.
Optimal Capital Solution
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Created a customized collar to protect the value of the illiquid concentrated holding
through a competitive bidding process between multiple investment banks. Continued
deferral of tax on the company sale.
Monetized the hedged asset to liquefy the sale proceeds.
Established Investment Policy Statements for each family member and trust to delineate
objectives, tax status and risk tolerance.
Designed customized asset allocations to maximize return relative to risk and cash flow
needs.
Worked with family attorney and tax advisor to develop comprehensive Estate Plan;
perpetuating family values, directing philanthropy and avoiding taxes.
Non-profit Endowment Fund
Client Circumstances
An endowment fund had experienced significant growth in assets due to efforts of development
personnel. Over time, assets were scattered across multiple institutions, which caused difficulty
monitoring and managing the investments in an efficient cohesive strategy.
Optimal Capital Solution
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Analyzed and reviewed asset allocation to provide a comprehensive look at the risk/reward
characteristics of the endowment portfolio.
Updated the Investment Policy Statement to accurately reflect the Investment Board
mandate.
Aggregated the past performance reporting from various custodians into a consolidated
report.
Developed a spending policy satisfying the organizations commitments while assuring funds
are sustained in perpetuity.
Re-allocated assets more efficiently to protect the portfolio better in down markets, reduce
volatility and produce more consistent compounding of returns.
Generational Wealth Transfer
Client Circumstances
A client family had substantial assets transitioning to future generations. The executor, also a
beneficiary, had responsibility for disbursing the estate and managing the remaining trusts.
Beneficiaries were residing in multiple states.
Optimal Capital Solution
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Reviewed trust, estate and financial documentation in a coordinated fashion with the
family’s legal and tax advisors.
Consolidated assets spread between multiple custodians, and produced a completely
aggregated picture of the family wealth.
Hosted a family retreat to develop mission statement and promote familial bonds. Developed
a plan for disbursement of the estate.
Created investment policy statements, and financial/ estate plans for each beneficiary family,
customized according to the attitudes toward risk, cash flow needs and tax status of each.
Allocated each beneficiary’s assets to efficiently accomplish the objectives reflected in the
policy and plan.
Institutional Partnership
Client Circumstances
A private financial institution wanted to build a wealth management division, but was concerned
about risking capital and the length of time necessary to achieve profitability. They struggled with
navigating the burdens of registration and regulatory oversight, and were unsure which strategy
uniquely positioned their institution.
Optimal Capital Solution
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Consulted with senior management and board to determine what structure would best
serve their customer base.
Developed outsourced strategy that eliminated the need for capital and minimized business
risk.
Delivered turnkey solutions for operations, wealth management and marketing.
Promoted symbiotic cross selling between lending, deposit, and wealth management
divisions.
Provided a world class total wealth management solution that, increased customer
satisfaction and retention, produced immediate profitability, and increased the enterprise
value of the organization.
Important Disclosures
This material is for educational and informational purposes only and is distributed by Optimal Capital Advisors, LLC, which is registered with the U.S.
Securities and Exchange Commission (“SEC”). The registration described herein no way implies that the SEC has endorsed the above-referenced entity
to provide any of the services discussed herein.
Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be
assumed that future performance of any specific investment, investment strategy (including the investments and/or investment strategies
recommended by Optimal Capital Advisors, LLC) or product will be profitable or equal the corresponding indicated performance level(s), or be suitable
for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or
positions. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for,
personalized investment advice from Optimal Capital Advisors, LLC. Please remember to contact Optimal Capital Advisors, LLC if there are any changes
in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or
services. Please also advise us if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of
our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
Historical performance results for investment indices and/or categories have been provided for general comparison purposes only, and generally do
not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the
incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that your account holdings do or will
correspond directly to any comparative indices.
NOTES TO HYPOTHETICAL INFORMATION
This material contains certain hypothetical performance and portfolio information. No representation is made about the overall hypothetical portfolios
or their suitability or potential benefits for any client or investor and no advice or recommendation is given with respect to such hypothetical portfolios
and are included for illustration purposes only. The hypothetical portfolios do not represent actual client or investor accounts. Hypothetical
information, including hypothetical performance results, have many inherent limitations. They are generally prepared with the benefit of hindsight,
may no involve financial risk or reflect actual trading or asset allocations for any portfolio and therefore do not reflect the impact that economic and
market factors may have had on the manager’s or advisor’s investment decisions for that portfolio. In fact, there are frequently sharp differences
between hypothetical results and the actual record subsequently achieved. No representation is made that such portfolio’s performance would have
been the same as such hypothetical results had the portfolio been in existence during such time. Another limitation is that investment decisions
reflected in the hypothetical information were not made using that portfolio assets or asset allocation strategy under actual market conditions and
therefore cannot completely account for the impact of financial risk on the manner in which the portfolio would have been managed and the assets
allocated.