The situation

After the settlement of her parent’s estate, Sarah* had become responsible for a substantial investment portfolio. It wasn’t a sudden shift. As her parents had aged, she had already begun making investment decisions with them and knew their portfolio well. Along the way, she had become a pretty savvy investor.

Her parents’ approach had been relatively traditional, and she knew that there were opportunities for a greater—and more diverse—mix of investments. “It was important to me that I honor my parent’s intentions,” she recalled later. “But I also had the responsibility to maintain and grow the account for the next generation. I knew we were likely to get better results with a more diversified approach.”

Our approach

Sarah had ideas, but she also a lot of questions. “I remember a meeting a few years earlier,” she continued. “The J.P. Morgan team had given us a really interesting presentation about alternative investments. It wasn’t right for my father, but I wanted to know more.”

Sarah and her J.P. Morgan advisor, John, reviewed the current portfolio, and talked about options for adding investments that would complement the existing portfolio. After discussing strategies to hedge some of the more concentrated stock positions and diversify the tax-free bond allocation, John asked her about adding exposure to private companies.

“Sarah had done her research,” John remembered. “She knew that private equity investments had the potential to help her better meet her goals. But she didn’t think she could dedicate enough capital to build a diversified allocation. Or make a large commitment to a relatively long-term, less-liquid investment. I told her that we had a way she could do it that would fit her portfolio and her objectives.”

Through our premier alternative investment platform, the Private Bank offers investors like Sarah access to unique private company investment opportunities. All sourced and vigorously vetted by the 70 specialists on our due diligence team.

“We are able to combine a pool of private investments—for example in technology, healthcare, real estate and even private credit—and create a single, diversified investment,” John continued. For Sarah, it was a compelling solution. “I can get meaningful exposure to thoroughly researched private companies at a level I’m comfortable with and that fits into my overall strategy,” she responded. “It would be almost impossible for me to do that by making multiple direct investments. And it significantly simplifies the IRS paperwork. If you know how complicated that can be, you understand what a benefit it is.”

Now, Sarah looks forward to talking to her advisor about what’s new in the J.P. Morgan private investment pipeline. “She’s become a really knowledgeable investor,” John added. “And it’s been great to see her become such a dedicated steward of her family’s wealth.”