Initial Situation

• Client, 53 years old; spouse, 49 years old

• Married with 2 children, 19 and 9 years old

• Runs a very successful, fast growing small business valued at roughly $500 million

• $2,000,000 investment portfolio (non-diversified)

Life Objectives

• Pass maximum amount of accumulated wealth to children and future grandchildren

• Maintain $1,000,000 a year in income to travel and finance personal interests in hobbies

• Slowly turn attention from running business to finding a cure/treatment for a disease that afflicts a family member

Risks/Problem Identified

• Non diversified wealth, 99% of wealth tied up in value of company

• No comprehensive wealth management strategy

• 4 Different Advisory Relationships and 1 “Brokerage” relationships

• Needed help in evaluating potential sale of company

• Not interested in “managing” investments, but wants to maintain control

• Interested to learn about investments, how the capital markets and the world economies interrelate

Wealth Management Process

• Completed financial plan to catalogue current assets and asset characteristics

• Created a time sensitive plan to withdraw funds from the company to begin to diversify his personal holdings. To date, has re-allocated $225 million after tax from the company while still maintaining 100% ownership and no debt

• Created a wealth management strategy that took best advantage of continuous and consistent cash additions to invest in areas of the market that were relatively cheap as compared to others. For example, in mid 2006, began to invest in municipal securities which began to have higher spreads than historical levels

• Interfaced with the corporate CFO to create a cash flow plan that addressed client goals and made certain cash was available for taxes. Instituted cash management plan. Worked very closely with his estate planning attorney to draft an estate plan that met client objectives. Established various limited partnerships, statutory trusts and GRAT’s with Trust Co acting in various capacities

• Set up 401(k) plan for company

• Made introduction to Investment Banking team and interfaced with team to ensure that the client received the best connectivity and advice

• Presented asset allocation alternatives with historic modeling to find appropriate portfolio risk/return characteristics based on personal growth and income objectives. This includes not only today’s assets but also takes into account the consistent flow of assets into the future. In this case 15% Domestic Equity: 12% International Equity: 15% Hedge: 25% Fixed Income: 18% Alternative Assets: 15% Cash Benchmark

*This asset allocation was developed based on this clients’ particular circumstances and is not a recommendation.

• Provided family investment seminars to educate children about wealth management

• Educated spouse on wealth management strategy which includes review of estate plan

• Arranged Portfolio Loan Account to allow client access to borrow funds against their securities account at Libor + 2 to fund business opportunities

Next Steps

We’ll continue to…

• Manage diversified portfolio for stated growth and income objectives

• Money management education for children

• Manage banking relationship

• Provide advice and leadership on clients professionals team

• Work closely with client to help client understand the complex financial markets and the range of financial opportunities available to client

• Work closely with clients advisors to ensure that clients interests remain in the forefront of decision making

Client also moved investments from other banks, as we had double the annual return versus the competitors return since inception.

Other Applicable Services for the Entrepreneur

• Business valuation services

• Comprehensive Employee Stock Ownership Plan (ESOP) Services

• Investment banking

• Cash management

Initial Situation

• Client, 48 years old; spouse, 46 years old

• Married with 2 children, ages 20 and 17

• In process of selling business to a private equity firm for $36 million

• Is expected to receive cash and notes valued at $20 million

• Plans to continue as CEO with 4-year contract

Life Objectives

• Earn a high rate of return relative to the financial markets

• Maintain $450,000 a year in income

• Develop giving plan to donate to favorite charities

• Slowly turn attention from running business to enjoying life

Risks/Problems Identified

• Non-diversified wealth, 99% of wealth tied up in value of company

• No comprehensive wealth management strategy

• No advisory relationship

• Need personal financial advisor to help evaluate deal terms of sale of company

• Not interested in “managing” investments but wants to maintain control

• Wants to have interaction regarding both strategic and tactical planning

Wealth Management Process

• Interfaced with corporate CFO to create a cash flow plan that addressed client goals and made certain cash was available for taxes. Instituted cash management plan. Worked very closely with his estate planning attorney to draft an estate plan that met client objectives. Established various limited partnerships, statutory trusts and GRAT’s with Trust Co. acting in various capacities

• Created format for evaluating terms of deal from client perspective which includes both the legal and tax implications. Answered the self-imposed question, “What is my bottom line once deal is complete?”

• Worked with professional team to change structure of deal to benefit the client

• Worked with estate planning attorney to create a GRAT prior to letter of intent being offered

• Created a wealth management strategy that included a comprehensive financial plan

• Presented asset allocation alternatives with historic modeling to find appropriate portfolio risk/return characteristics based on personal growth and income objectives. This includes planning for upcoming tax payments, and additional outflows due to charitable giving, vacation home remodel and private real estate purchase. In this case: 24% Domestic Equity: 15% International Equity: 14% Fixed Income: 28% Alternative Assets: 19% Cash Benchmark

*This asset allocation was developed based on this clients’ particular circumstances and is not a recommendation.

• Created a fee-based investment plan utilizing individual investment managers for the equities, created a corporate and government bond portfolio and a well-diversified alternative investments portfolio

• Extensively review estate plan and worked with client to help determine the correct amount of life insurance to purchase to satisfy objectives. Worked with an Estate Attorney to create Irrevocable Life Insurance Trust to hold policy

• Arranged Portfolio Loan Account to allow client access to borrow funds against their securities account at Libor + 2 to be used as a cash flow tool

Next Steps

• Continue to manage diversified portfolio for stated growth and income objectives

• Continue to provide leadership and work closely with clients advisors to ensure that client’s interests remain in the forefront of decision making

• Continue to work closely with client to help client understand the complex financial markets and the range of financial opportunities available to client

• Review on a monthly basis market and economic changes that affect the clients investments by phone

• Meet quarterly with client and spouse to review investment portfolio, paying special attention to maintaining agreed upon tactical and strategic asset allocation

Initial Situation

• Client, 45 years old; spouse, 42 years old

• Married with 3 children ages 8, 10 and 14

• In process of selling business to a publicly traded company for $99 million

• Is expected to receive cash valued at $35 million

• Plans to continue as CEO with 1-year contract

Life Objectives

• Earn a high rate of return relative to the financial markets

• Generate $250,000 a year in income to supplement salary

• Create a foundation for giving and educational opportunity for kids

• Spend more time creating music and playing in his band

Risks/Problems Identified

• Has no investment experience

• Wants an advisor to assist team in evaluating deal terms

• Wants a comprehensive wealth management strategy & plan – strategic and tactical

• Would prefer to pay as little tax on the transaction as possible

• Wants to understand investment advice but does not want to manage

• Interested in investing in local startup companies to help the ecosystem

Wealth Management Process

• Spent many hours educating both spouses on charitable giving, investing and taxation (to name a few topics)

• During the educational process, learned about their risk tolerance, their fears regarding money, income needs, both short term and long-term plans and what they liked to do for fun

• Developed a Financial Plan that allowed the client to work through various “What If?” scenarios

• Created a process and analyzed the deal structure making recommendations that would benefit the clients

• Introduced them both to a tax attorney that discussed with them the option of creating a Nevada trust to eliminate state tax on the transaction

• Worked closely with attorney to implement Nevada Trust, created an Asset Allocation model across 4 separate entities to accomplish their goals. Nevada Trust also offered asset protection

• Sourced a Las Vegas based CPA to manage client tax returns and assist with managing the charitable entity

• Post deal signing, structures were funded, and the investment plan was implemented

• Clients wanted to spend some of the funds that were received which we accomplished in a tax-efficient manner

• Created asset allocation alternatives with historic modeling to find appropriate portfolio

• Risk/return characteristics based on personal growth and income objectives. This includes planning for upcoming tax payments, outflows due to charitable giving and building a new home. In this case 35% Domestic Equity: 10% International Equity: 20% Fixed Income: 20% Alternative Assets: 15% Cash Benchmark

*This asset allocation was developed based on this clients’ particular circumstances and is not a recommendation.

• Created a fee-based investment plan for the equities, created a corporate and municipal bond portfolio, and a well-diversified private equity portfolio

• Worked closely with their insurance agent to properly fund Irrevocable Life Insurance Trusts

• Arranged a security-based loan allowing clients access to borrow funds against their securities account at Libor + 2 to be used as a cash flow tool

Next Steps

• Continue to manage diversified portfolio for stated growth and income objectives

• Continue to provide leadership and work closely with clients advisors to ensure that client’s interests remain in the forefront of decision making

• Continue to work closely with client to help client understand the complex financial markets and the range of financial opportunities available to client

• Review on a monthly basis market and economic changes that affect the clients investments over the phone

• Meet quarterly with client and spouse to review investment portfolio, paying special attention to maintaining agreed-upon tactical and strategic asset allocation