Invest with your clients, says adviser
Family offices need to think of creative ways to compensate managers, said David Bauer, CFO of Lubar & Co.
In an increasingly competitive market for talent, family offices need to think of creative ways to compensate managers, said David Bauer, chief financial officer of Milwaukee-based Lubar & Co.
“How do you incent managers in a family office?” Mr. Bauer asked, addressing the annual Family Office Forum here in Chicago this morning. “That’s a real big question.”
Mr. Bauer said his company’s solution was to allow managers to invest in the same fund as family members.
What’s more, the managers’ returns from the fund were “enhanced through leverage,” Mr. Bauer said.
The objective, he added, was to have the managers’ financial interests aligned with the success of the family’s investments.
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