Professional Advisors Network for NOVA

What the shift toward private markets means for your philanthropic clients

by Keith Brennan, Business Development Director, SEI Private Wealth Management

It’s not your imagination! More and more of your clients are investing in private markets instead of simply limiting their strategies to stocks listed on the exchanges. Indeed, the number of publicly-traded companies has declined significantly since the mid-1990s. Although many clients are investing in “alternative” vehicles to participate in private markets, a large portion of some clients’ wealth is represented by closely-held stock in businesses they’ve started or in which they are investors.

As trends in equity ownership have shifted toward private investment, trends in charitable giving have shifted, too, toward increased popularity of giving closely-held business interests to charitable organizations such as a donor-advised or other type of fund at the community foundation. Here are three factors to keep in mind as you counsel philanthropic clients who own shares in a closely-held business:

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