HOW IS PRIVATE-WEALTH MANAGEMENT RELATED TO OTHER FACETS OF THE FINANCE INDUSTRY?
Private-wealth management may require direct involvement with private equity and hedge funds because individuals with high net-worth may benefit from holding a position in a private equity fund or hedge fund as a portion of their investment portfolio. Additionally, because of the close relation between these Wall Street institutions and investment banking in general, knowledge of investment banking practice is also important for the private-wealth manager. In order to conduct private-wealth management for an investor, cooperation with asset-managers of different types working for the same investor may be required. For example, a stock broker may have access to institutional offerings, such as insurance, mutual funds and other institution-specific investment vehicles, which can fill a role in the portfolio an investor has under private-wealth management.
