At Kandor Global, International Clients Seek Solutions Tailored to Their Specific Needs
The firm – a finalist in the category of RIA of the Year, Less Than $1 Billion AUM – helps many of its clients meet the challenges that come with being global citizens.
In the run-up to naming the winners of the inaugural RIA Intel Awards on September 14, 2022, RIA Intel will publish short features highlighting the accomplishments of this year’s nominees and Rising Stars.
Founder and CEO Guillermo Vernet launched Kandor Global — which today has a roughly $500 million in AUM — in 2020. We spoke to him about the challenges and opportunities that come with working in the international wealth management space with high-net worth clients. Responses have been edited for length and clarity.
What are your thoughts about the international wealth management space and Kandor Global’s role there?
At an international level, clients are transitioning from a brokerage solution to a holistic advisory solution. Until recently, international clients needed a way to save in hard currency outside their home country. They found a solution through financial instruments, primarily bonds. Now, with easily accessible information, they’ve become more sophisticated, and they’re seeking solutions tailored to their specific needs and expanding from a need to save their money to a desire for performance. Using a fiduciary investment advisor is a relatively new concept to international clients who were used to the brokerage or banking solution, but not only does Kandor Global advise clients on their investments, we also help them efficiently structure their family holdings and facilitate their succession.
Another important trend to note is the increase in clients becoming global citizens, with family living in various locations, including the U.S. Our experience in these scenarios has not only shown us how overwhelming it can be for our clients to manage, but it has also strengthened our focus on estate, tax, and migration planning in both our clients’ home countries and in the U.S.
What are some of the biggest challenges you’re currently facing, and what unexpected opportunities have you have come across in the past year?
Considering market conditions, clients expect good net performance after inflation on a risk-adjusted basis. As a result, their goals have turned to investments in global and diversified portfolios, including investing a relevant share in private markets. Approximately 70 percent of our clients have invested and become limited partners in private investment funds, and we help guide and educate them on all aspects of the private markets, although we exclude direct deals since we don’t believe you can achieve diversification this way.
What’s the most important lesson that you’ve learned over the course of your career?
Building a solid wealth management business takes time, and there are no shortcuts. It’s like training to run a marathon — success doesn’t happen overnight. You need to establish a strong foundation of trust with your clients; you need to ensure that your clients and your team are valued; and most importantly, you need to keep your head in the game and adapt to new situations. This requires perseverance and a service mindset. You have to hold on to the passion in your service to help you overcome difficult and changing times.
The inaugural RIA Intel Awards are a celebration of financial advisors, wealth management firms, and industry leaders. Winners will be announced on RIAIntel.com on September 14, 2022 and will be honored in-person at upcoming RIA Institute Forums.