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									Wealthy Families Turning To Direct Investing
Charles Paikert, Editor in New York - Family Wealth Report

Spooked by the stock market, wealthy families are increasingly feeling more comfortable about investing
directly in businesses that they are already familiar with, say wealth management executives.

“We’re seeing much more direct investing and private equity deals by wealthy families,” said Norman
Jones, chief executive of WealthTouch, an outsource provider for reporting platforms targeted at ultra-high
net worth clients. “They’re going back to the industries where they’ve made their money and investing
directly in companies. It’s a great investment opportunity because valuations are down and the companies
need cash.”

Wealth managers say ultra-high net worth clients who have been disappointed with their portfolio since
September 2008 also want more control of their assets.

“They want to know what they’re investing in,” said Dune Thorne, managing director for Silver Bridge
Advisors in Boston. “They don’t want any more surprises. There’s been so much uncertainty in the markets
that they’re going back to what they know and are comfortable with. They believe, as do we, that good
companies and businesses will do well for the next ten years.”

“Wealthy families who have delegated their asset allocation to others have been disappointed,” said Jeffrey
Lauterbach, a consultant to wealthy families who is based in Chadds Ford, Pennsylvania. “They are seeing
they must be more directly involved in investing their money.”

Wealthy families are also joining forces to invest directly, said Mr Jones.

“Many single family offices and multi-family offices are starting to look like small private equity firms, and
are almost always partnering with other family offices on deals,” Mr Jones said. “They like hunting in a pack
as they can share due diligence and leverage others’ industry expertise.”

February 18, 2010

This article is reproduced with the permission of Clearview Financial Media Ltd, publishers of Family
Wealth Report.

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