Advising a client on a large liquidity event

Situation

Hao owns a manufacturing company and recently listed it on the New York Stock Exchange. Through this initial public offering (IPO), he expected to receive approximately US$500 million in cash. As he awaited this substantial inflow of funds, Hao felt anxious about selecting the right bank for the deposit and questioned whether he was adequately prepared for the future. Having previously worked with J.P. Morgan to set up a trust, Hao returned to the firm for guidance. 

Our Approach

Hao’s J.P. Morgan team assured him they would support him throughout his wealth journey and help him address and plan for his liquidity needs before he even received the funds. Together, they would develop a custom goals-based plan to address both his short-term liquidity needs and long-term wealth goals.

Given that Hao has family and business interests across the globe, he also wanted to ensure that his bank would be able to transfer funds when needed. The team explained that payments of any size could be efficiently transferred to or from international recipients.

Outcome

Hao decided to place his funds with J.P. Morgan Private Bank. After a successful IPO, Hao was able to distribute the proceeds successfully and invest according to his long-term goals, while maintaining his liquidity needs. With his J.P. Morgan team’s proactive engagement and a judicious plan in place, Hao felt he was on a good path forward.