Often owners cannot or will not skillfully administer their illiquid assets. In such cases advisors can ride to the rescue simply by saying “would it be helpful if I connected you to firms providing services 1-8”? The reaction from owners is always the same: a sigh of relief, a smile and a heartfelt “thank you, that is exactly what we need!” This is why advisors offering to help win so many referrals.
Dozens of firms offer specialized illiquid asset services and each one wants to be hired by your clients. Not all are good (so vendor due diligence is key) but the competent ones can be a godsend. The advisor’s job is to connect clients to the best of these vendors.
Conclusion
To sum up, it takes specialized skills to preserve the value of illiquid assets, skills their owners often lack. Advisors willing to connect clients to help can meet their clients’ pressing needs and win referrals.
Brad Davidson is a principal with Securities Pricing and Research Inc. (SPARDATA) of Baltimore and is managing partner of its consulting unit Unique Asset Partners LLC.