ALLOCATE FAMILY CAPITAL
One investment. The whole balance sheet.
How NEXA would connect an investment opportunity to family liquidity, concentration and future commitments.
AN ILLUSTRATIVE BRIEF
Start with the question.
A family office is considering an illiquid investment while existing funds may call capital and the family has upcoming cash needs. An attractive standalone return is only one part of the decision.
What we would bring togetherPortfolio exposures, investment terms, unfunded commitments, expected distributions, spending needs and the family’s priorities.
HOW NEXA WOULD APPROACH IT
Build the case.
Connect each decision.
- 01
Define what the capital must do.
Clarify the investment horizon, liquidity reserve, loss tolerance and obligations that must be funded. Keep the priorities of different family members and entities visible.
- 02
Map the existing exposure.
Look through holdings where evidence permits to identify overlapping assets, sectors, currencies and counterparties. Distinguish readily available cash from assets that may take time or a discount to sell.
- 03
Connect commitments to liquidity.
Place the proposed investment beside existing capital calls, spending and expected distributions. Test delayed distributions and market declines occurring together, rather than assuming each risk arrives separately.
- 04
Compare allocation choices.
Examine a smaller commitment, staged funding, a more liquid alternative or deferral. Surface how each choice changes concentration and flexibility, with tax and legal questions directed to the relevant advisers.
CONNECTING THE DOTS
What changes downstream?
- 01Delayed distributions
- 02Overlapping capital calls
- 03Lower liquidity reserve
- 04Potential asset sales
- 05Commitment size and timing
Two investments can look diversified by sector and still depend on the same source of liquidity. NEXA would connect their funding schedules to reveal when the family could need cash at the same time.
WHAT YOUR TEAM COULD REVIEW
A connected set
of work products.
- An allocation analysis showing portfolio fit and concentration.
- Liquidity scenarios connecting commitments, distributions and spending.
- A decision brief comparing the alternatives and the conditions that change them.
TAKE THE CONVERSATION FURTHER
Explore your family-office workflow.
Talk with our team about the allocation question, available portfolio information and how an evaluation could fit your existing advisers and review process.
Schedule a call with our teamIllustrative workflow, not a completed client engagement. Scope and work products depend on the evidence and agreed evaluation. Your team owns the decision.