The Family Office, a leading wealth management company in the GCC with offices in Manama, Riyadh and Dubai, emphasized the importance of professional investment management to ensure robust due diligence and provide exclusive access to alternative investments. These investments differ from traditional investment classes due to their illiquid nature and sheer variety, from private equity to private debt, real estate, hedge funds and more.
An Attractive Asset Class:
Alternative investments are indispensable to a diversified portfolio but are inaccessible to most investors without a professional investment manager. Potentially, they provide diversification, higher risk-adjusted returns, lower volatility and access to niche markets and unique investment opportunities that are unavailable in public markets.
Alternative investments have been historically reserved for sophisticated institutional investors and ultra-high-net-worth individuals, but the landscape is changing. According to a 2022 survey, more than 83% of financial professionals believe that all retail investors should have access to alternative asset classes.1
The Role of Professional Investment Managers:
Two key issues with alternative investments have been the high minimum investment amounts and inaccessibility. These assets cannot be bought in the open market, and are typically available only through network-based relationships, restricting access to elite investors.
“Through their extensive networks, professional investment managers access exclusive investment opportunities and often negotiate better terms and reduced fees for their clients,” revealed Wassim Jomaa, Chief Investment Officer of The Family Office.
Professional investment managers help investors navigate the complexity of alternative investments, from identifying investment opportunities, assessing their risk, and managing the investment until exit. Based on the investment objectives, risk tolerance and financial situation of each client, professional investment managers implement a customized investment strategy and communicate with clients regularly about investment performance and changes that may affect their goals.
“Expert investment management is essential as transparency is limited and each alternative asset class requires extensive due diligence. Unlike publicly traded companies, up-to-date information is rarely available on private companies. Moreover, the evaluation of the distinct characteristics and risk profiles of private companies requires specialized knowledge. In this regard, professional investment managers conduct extensive research and analysis to assess financial performance, the quality of management, market trends, regulatory environments, and potential exit strategies. This information is accessed through trusted relationships developed over time with fund managers, law firms, seasoned advisors, industry experts and others, thereby reducing the risk of making uninformed decisions significantly,” says Abdulmohsin Al Omran, founder and CEO of The Family Office.
Working with the Right Partner:
A professional investment manager plays a vital role in identifying potential investments, assessing their risks and benefits, and determining whether they align with the investment goals and risk tolerance of each investor.
As a trusted wealth manager with an extensive track record in alternative investments, The Family Office helps you navigate the complexities of alternative investments and customizes your investment strategy to align it with your needs and goals.
About The Family Office:
The Family Office in Bahrain, Dubai and its Riyadh-based wealth manager, The Family Office International Investment Company, are regulated by the Central Bank of Bahrain, The Dubai Financial Services Authority and the Capital Market Authority of Saudi Arabia, serving hundreds of families, individuals and investors. The firm helps clients achieve their wealth goals through custom-made investment strategies that cater to their unique needs.