Many families wealth starts with an investment in a concentrated family stock position. Why do concentrated family stock positions matter? Often the family is emotionally tied to the concentrated family stock position as the source of the family's wealth. While they are very knowledgeable about the value of the concentrated family stock position, they may view the concentrated stock position as less risky than it is and are reluctant to reduce the exposure. It may also be that a concentrated family stock position provides the family with control and they cannot dilute the exposure without losing voting power.

At Lord North Street we are expert in developing strategies which provide solutions to the problems arising from concentrated family stock positions. Structures can be devised which can hedge a concentrated family stock position or provide some liquidity to create an opportunity for a more balanced portfolio. Concentrated family stock positions must be managed to ensure that wealth once made is well preserved.