Through our close-knit relationships across our firm, our full range of expertise is at your fingertips. Helping you deliver first class service to your clients that transcends across their personal and business worlds. Jenny Sargeant, partner lead of our specialist private banking team sits down with passion asset financing partners James Earl and Ella Leonard.
In a nutshell what's your area of expertise?
James Earl (JE): My background is working primarily in the sports sector and from working closely with the owners and investors of sports assets I have segwayed into transactions across the board involving other passion assets including cars, jets, art, watches, wine to name a few.
Ella Leonard (EL): I started life as a general corporate lawyer and was lucky enough to spend four years in Bahrain becoming an investment funds specialist during that time and working with Middle Eastern clients. My niche is helping clients invest into, and finance, passion assets frequently using Islamic finance products.
When do you come across private banks or their clients in your practice?
JE: Everywhere. Primarily my client base is UHNW wealth all of whom are clients of private banks who help them find and execute opportunities. I am currently working on a private equity fund being set up for UHNWs (from a sports and entertainment background but with a deep involvement in the sports sector) to invest into a Formula 1 racing team.
EL: Yes everywhere – we are a private capital-based firm and so a large number of our clients are UHNW and HNW clients, their family offices and corporate structures. I am almost always working with a private bank or with their clients. From the lens of my particular specialisms, I am often assisting clients in choosing the right private banking relationships for their opportunity and am with them as their investment structure matures, working very closely with their advisors at their chosen private bank.
Can you give an example of where you best add value?
EL: Listening very well and communicating before my client asks the question rather than being reactive. I am their single point of contact who knows what is going on across a wide range of advisors. My wealth of experience allows me to hold a client’s hand through investment set up and growth processes, knowing where the pitfalls are and how to plan ahead using great project management skills to ensure the client’s experience is seamless and supported.
JE: All passion assets exist within an exclusive network or “community”, and we create access points for new investors. We spend time getting to know what clients are looking for (sector, investment type etc.), connect our clients to opportunities and then execute those for them bearing in mind the benefit for clients of building long term relationships within the community/sector.
Do you have a mantra or saying that best describes how you work?
JE: It’s possible for everyone to do well out of a deal.
EL: I ask, “How would the client feel about this?” It’s about being ahead rather than behind the game for the client.
What do you enjoy most about what you do?
EL: When there is a really thorny, potentially intractable issue and by talking it through, thinking broadly and involving specialist colleagues you end up with a solution that is better than the original “ask”.
JE: Every day is a school day – you never know who the next phone call will be from or the deal it will be about. I never worry about AI taking away the role of a trusted advisor as you cannot always (or ever) predict what humans will do next and we need to understand our clients who will often have very specific concerns or principles which are of the utmost importance to them, and which we will need to deliver on.
What do you think is key to assisting UHNW families in your area of expertise?
JE: Listening. Taking the time to listen carefully to what UHNW clients want and what is important to them now, tomorrow and for the next generation so you can then start to add value and get them to where they want to go rather than just selling at them.
EL: I completely agree and it’s also about not making any assumptions – it’s easy to make suggestions based on your own personal experience but often that will be completely different to a UHNW’s reality. You have to “learn your client”.
How can we best bring together “business” and “personal” requirements for our private clients to deliver first class service for them?
EL: Investing in longevity of relationships by absorbing things which might at first seem irrelevant to your specialisation but allow you to broaden your perspective across a client’s wider world. For them everything is joined up and it is only you that’s putting things in boxes. It’s important to ensure that all advisors are pulling in the same direction for the client even if they have different perspectives and priorities.
How do you help private banks deliver first class service to their clients?
JE: Recognising that there is more than one relationship at play when we are working on a transaction with a private bank. By understanding the different elements at play we can make sure the different lines are respected.
What would be the “one thing to watch out for” coming ahead in your area?
JE: Trail blazing mindset is key to passion assets as it’s about spotting trends and opportunities and being ready to execute quickly. As sectors become more mainstream and saturated the biggest challenge is staying ahead of the curve and staying original with our offer. We are seeing a move from passion assets to passion “experiences” e.g. high-end hotels, very high-end bespoke trips and these present opportunities for investment. Whilst physical assets represent a store of wealth and evoke passion, post Covid there has been a shift of priority from the physical to the experiential. Investment structures are being crafted around businesses tapping into these cutting-edge experiences.
EL: Being at the investment coalface what I see first hand, despite political and taxation uncertainty and negative press, is the UK remaining an attractive investment jurisdiction for UHNW and HNWs, their family offices and corporate structures as well as sovereign wealth funds. What is changing is how Islamic finance is used – we are seeing increasing sophistication both at private client and institutional level. Rather than being applied across a whole transaction Islamic finance is being tailored to an element of a transaction producing a more bespoke debt and equity structure to fund those investments.
Our connections across our firm are here to provide you with all the expertise you need so if you want to continue any of these conversations or have any passion asset financing queries, please feel free to get in touch with James or Ella.
For more information about Passion Asset Financing please click here.
For any Private Banking related queries please contact Jenny Sargeant.
