An Entrepreneur's Capacity for Risk

 

Popular wisdom frequently portrays entrepreneurs as extreme risk-takers whose success is the product of bold decisions and exceptional confidence levels. But while this may be true of business decisions, we often find it can be the complete opposite when it comes to managing your personal wealth.

In fact, outside of their business, entrepreneurs can be reluctant to take any risk at all. This is especially the case if you have had a liquidity event from selling all or part of your business.

In our experience, there are many reasons why this may be the case. You built your business by relying on your own hard work and judgement, and by having the resilience to let go of your mistakes and focus only on what motivates you.

As an entrepreneur, you may also prefer to stand out from the crowd rather than follow the beat of someone else’s drum. To achieve this, you need to innovate, and this means putting something on the line, whether it is your capital or your reputation. While the risks of losing either are always mitigated in one way or another, you’ve grown accustomed to it.

By contrast, your approach to your personal wealth may be the complete opposite. For wealth managers like us, the challenge lies in helping you to overcome the contradiction between your desire to take on big risks with your business and your fear of loss with your personal wealth.

At London & Capital, we believe it is important to get to know you and your approach to risk before making any investment recommendations. Managing an investment portfolio is not the same as running a business, therefore the risks associated with it will be different.

Only when we understand your financial goals, as well as the challenges you face, will we recommend a portfolio that has been designed to achieve your objectives.

Iain Tait

Partner & Head of the Private Investment Office

Iain became a Partner of London & Capital in 2008 and heads the firm's Private Investment Office, which he founded in 2013. The Private Investment Office provides wealth management services for some of the firm’s largest clients.

Prior to joining London & Capital, Iain ran his own wealth management business for five years, in association with Zurich Financial Services Limited, where he built and maintained a significant high net worth client base. Before that, he was a partner at Freeman, Farmer and Anderson Company at only 27.

He has been awarded the Investment Management Certificate, a Diploma in Financial Planning and a BA Hons degree from The University of Manchester. He has been named in CityWealth’s ‘Top Private Bankers & Investment Managers’ leaders list for the past 3 years and was named in PAM ‘Top 40 under 40’ in 2013.

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To speak to Iain or a member of the Private Investment Office, please call 020 7396 3388 or email invest@londonandcapital.com


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