Services & Accounts

Investing in alternative assets typically requires the services and attendant costs of a variety of service providers. Each additional cost may reduce the  cash on cash returns. As experienced, cost-conscious investors, CPC knows that many services can be minimized, particularly toward the end of the life of an alternative asset investment. For example, the already limited expected cash returns from Zombie Funds may be further compromised by the aggregate costs associated with holding them until cash liquidity comes around; so, many times a fire sale liquidation of a Zombie Fund is the best avenue when holding costs are properly forecasted. In addition to the costs associated with servicing and managing alternative assets, taxes incurred can also have a material impact on cash on cash returns. Taxes may result from the types of alternative assets held or manner in which they are held. CPC works to curtail excessive, unnecessary or avoidable investment management fees and expenses by implementing more efficient processes, and we identify avenues for holding and identifying alternative assets in order to achieve tax efficiency. Our ACT Efficiency Services is a process for rationalizing costs to maximize the risk adjusted rate of return based on an Analysis of Costs and Tax Efficiency, with each of CPC’s Strategies and for each of our eligible family clients. In sum, CPC intends to control costs, so that costs do not control our net after-tax returns.

CPC follows a disciplined and quantitative approach for realizing private equity investments to cash and completing the private equity life cycle for each of its Investment Strategies.  With an objective of maximizing the cash multiple of return on a private equity investment, our approach aims to realize to cash those securities which are distributed by a private equity fund as well as private equity fund interests that have reached the tail end of the J-curve. The effective management of selling exchange listed distributed securities at the tail end of the private equity J-curve may significantly alter actual returns realized from the original private equity investments. In addition, illiquid private equity fund investments may sometimes best be realized by selling the interests in the secondary market for cash to unlock a present value and wind up the investment once and for all. Review our Absolute Realization to Cash Strategy for more information on the objective and our experience.

Data since our founding in August 1986.

Investments in private equity funds are traditionally illiquid and require an investor to hold the investments for a significant period of time – often a decade or more. A secondary market has developed over the years, but remains inefficient and sellers are often subject to significant discounts to NAV and buyers look only to purchase very large positions. One of CPC’s initiatives is an innovative interval liquidity feature that would be rolled out across the multiple CPC investment strategies including the Excelsior Liquid Alternatives Strategy™.  The feature, which CPC anticipates having available in 2017, would allow CPC’s family office members to convert, on a quarterly or other interval basis, a portion of their illiquid long-term holdings into more liquid interests which could then be converted to cash.  By unlocking the value of traditional private equity interests, this feature will greatly increase the liquidity profile for our family office members and allow them to more comfortably deploy capital into the private equity area.

Beginning in Fall 2016, CPC expects to allow family office members to implement a Constitution strategy with retirement dollars. Several options may be available. If interested, contact us for a referral to one of our preferred retirement custodian trust companies; they can answer questions about either establishing a self-directed IRA or putting your existing retirement funds to work.

Innovation is a core investment philosophy of CPC. One of our key efforts for our family office members is to incorporate CPC’s strategies into an SEC registered fund structure. This structure would benefit from CPC’s long performance history but also from enhanced liquidity options and the protections provided through an SEC registration. Those features are expected to create a more meaningful market and create more value for our family office members. The initiative may include CPC’s direct sponsorship or partnering with a third party adviser. CPC anticipates launching this fund structure during fall 2017.

CPC embraces the need for relevant, timely information to complete the federal and state income tax returns we are required to prepare. Members of our family office may also sometimes have questions about CPC provided statements and forms. Although CPC tax guides do not substitute for the guidance and service a personal tax professional provides, easily downloaded tax documentation, along with information relevant to CPC statements and forms, will be posted in a timely manner on the CPC Account Access portal. Our intention is to help members of our family office to better understand and to make it as simple as possible for advisors to prepare required income tax returns. Please talk to an individual tax advisor, refer to IRS publications, or contact a CPC representative for any needed further clarification.

CPC offers you 24-hour instant access to your CPC fund accounts for family office members. Register for account access to view net asset values, statements, tax forms, fund documentation, or a history of all transactions. You can also register to receive statements electronically, assured that all information is protected by CPC’s use of encryption technology.