Alternative Investment Awards 2016

awards alternative investment wealth & finance2016 76 Partners, LLC Company: Presidium Partners, LLC Name: Steve Farrell Email: [email protected] Web: Address: 2400 Camino Ramon, Ste. 178, San Ramon, CA 94583 Telephone: 925-790-0300 AI16069 Presidium Presidium Partners is a wealth manager to high net worth individuals and family foundations. We profile the firm and speak to Managing Partners Steve Farrell and Frank Newsom. Traditional investments--public equities and bonds--have become increasingly fragile and unstable in recent years, so as fiduciaries and stewards of their clients’ assets, Presidium has turned to direct lending and private capital to mitigate risk and increase returns for client port- folios. Investing in private funds and single transactions on behalf of clients requires an expertise and level of due diligence that far surpasses that required of the traditional wealth manager. Managing partners Steve Farrell and Frank Newsom, graduates of Harvard Business School and The Wharton School respectively, are ideally equipped and committed to unearthing the gems that will protect their clients in the event of a public market dislocation. As Farrell states when asked about the firm’s due diligence efforts; “Finding suitable investments in this space takes time. We look at 100 opportunities to find one that makes sense.” Newsom goes on to say when asked about what they look for when reviewing private investment opportunities. “The private capital we utilize has the enviable traits of returning double digit returns, paid either monthly or quarterly, with standard deviations in the low single digits. We also invest only in funds that have solid collateral coverage with first-lien positions to protect in- vestor assets. Because above all, we want to first protect client capital.” Over the years, Presidium has found eclectic funds in niches such as life settlements, tax deed lending, medical receivables, small business lending, venture debt with warrant coverage and oil and gas royalties. In the direct space, they are currently involved in land transactions and legal advances. Farrell goes on to state that “In addition to asset protection, we also are mindful of liquidity needs. So we generally seek to cap our investment horizon (lock up) at under two years to maintain liquidity. Only in rare circumstances when an investment has unique merit will we consider going further out.” The first major tests for their private capital portfolios occurred in August 2015 and Q1 2016, when the equity markets swooned 10+%. In both cases, Presidium Partners’ private capital investments continued to perform with no additional volatility. This was good news to their clients who have come to expect unique solutions from Farrell and Newsom in addressing the risks in today’s markets. Newsom closed the discussion by stating, “We are pleased to receive this award from Wealth & Finance International as it recognizes our efforts made in this space. We believe in time that more wealth managers will recognize the need to diversify into private capital to protect and grow their clients’ capital.” Most Sophisticated Multi-Family Office – California & Best Private Capital Investment Team - California