Team Infrastructure Considerations

By: Arian Zwegers

Managers come in all shapes and sizes and have a variety of histories. Regardless, institutions are looking to work with stable, well structured organizations. Depending on firm structure and history, here are the types of team hurdles managers should be prepared to address:

  1. Key man/woman, or married couples’ business ownership
    and/or portfolio management
  2. Family business ownership
  3. Partnership/Ownership structure
  4. Private equity ownership
  5. Organizational sustainability/Burn rate
  6. Competing interests/Other businesses (i.e. wealth management)
  7. Seed capital controls
  8. Lack of pedigree
  9. Insufficient team
  10. Unaligned incentives/Lack of an incentive structure
  11. Turnover
  12. Regulatory history (firm or individuals)
  13. Legal history (firm or individuals)
  14. Firm three to five-year game plan