Dr Ariel Sergio Davidoff considers the benefits of private label funds as a solution for wealthy entrepreneurs
Today’s successful entrepreneurs either accumulated considerable cash before the advent of the current financial crisis or have the option of selling stakes in their business to a third party, providing them with the possibility of becoming cash-rich from one day to the next. This reality, set against today’s background of low liquidity and generally deflating asset prices, can result in excellent business opportunities for these entrepreneurs.
Successful entrepreneurs are known for pursuing their strong visions and overcoming many obstacles on the way to achieving them. Many entrepreneurs face similar issues, such as how to organise their succession planning in a suitable, structured manner, while still allowing them to access their assets, thus enabling them to continue to pursue their entrepreneurial activities.
A structure often chosen by successful entrepreneurs and one that is well-suited to these criteria is the private label fund. There are numerous jurisdictions that offer a relatively benign environment in which to implement such funds.
