Mr. Pakciarz set out to introduce a new model of financial advice to wealthy families in Latin America: American-style independent wealth management that goes beyond investing a part of a family’s money. He aims to coordinate various investment portfolios, businesses, and other assets into a holistic wealth- and financial-planning strategy.
A member of a long-time client family called financial adviser Ignacio Pakciarz a few months ago with an unusual request. She wanted to know if her family, which was worth more than $100 million, would consider investing in a risky biotech startup. “Usually we have one point person with a large family, and in this case, she wasn’t that person, so it was a bit peculiar,” says Mr. Pakciarz
Ricardo Outi has moved to BigSur Partners as head of real estate for the Miami-based multi-family office. Mr Outi previously worked for the wealth management arm of Citigroup, the US bank. Neil Schwam has also joined BigSur, as chief operating officer. He moved from Stratus Capital, a European investment boutique.
John Roësset, a well-known banker with over 20 years experience in the financial services industry, has joined the BigSur Partners team as a Senior Investment Adviser focused on Central America. BigSur Partners strengthens its team in Miami with this appointment.
In 2012, Latin American auction sales saw massive growth- increasing by 25% to $84.8 million. There is broad consensus amongst art experts that the Latin American market will experience growth. ArtTactic, the leading art market analysis and research firm, published in its 2013 outlook that 67% of art buyers expect the Latin American art market to expand in 2013.
After the financial crisis of 2008 and 2009, many of our clients said they felt a disconnect between themselves and the capital markets and wanted to participate more in the real economy. We encouraged our clients with portfolios in the $10 million to $150 million range do just that by helping them purchase shares of commercial real estate held by limited liability companies.
After the 2008-‘09 financial crisis, we have been in a long and slow moving economic and market cycle, where immense amounts of money creation from global central banks have flown to the more liquid areas of the capital markets. This long and slow dynamic has been characterized as the “turtle cycle,” with a recovery that inches forward, pushed by consistent flows of created capital. As the Fed ends quantitative easing in October, we think the European Central Bank will start quantitative easing very soon, prolonging this “turtle cycle” for at least another two or three more years.
Wealthy investors are turning to a rebounding real estate market as fixed-income yields remain historically low and equities surge. About 77 percent of investors with at least $1 million in assets own real estate, according to a survey released today by the New York-based investment bank’s wealth-management unit. Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaires surveyed saying they plan to buy this year.
Ignacio Pakciarz, chief executive of BigSur Partners, also recommends investments in regional banks, arguing that they will see “very strong” dividend growth over the next few years, a key driver of stock performance.
A multimillionaire in his mid-40s was living in Latin America and wanted to immigrate to the U.S. with his wife and three teenagers. He turned to his investment adviser for help in securing a visa. Rafael Iribarren, managing partner of BigSur Wealth Management LLC in Miami, had never helped a client through the immigration process before, so he wasn’t sure precisely of his role. But Mr. Iribarren, who is from Argentina and immigrated to the U.S. 15 years ago, set out to see how he could help.
If not administered and managed correctly, family wealth is squandered in three generations. The success, happiness and peace of future generations depend on the ability of wealth managers, either of their own wealth or that of others. “The reality is that wealth is consumed in three generations. One of our functions is to eliminate or mitigate the possibility that the legacy is destroyed,” says Ignacio Pakciarz, CEO of BigSur, in an interview with Funds Society.
BigSur Partners, a multifamily office based in Miami headed by Ignacio Pakciarz and Rafael Iribarren, has completed its eighth Commercial Real Estate transaction in five years. This is the fifth acquisition in the Class A office market. The first acquisition took place in 2009, selling it a year and a half later, and earning an IRR of 30% for its investors.
Gabriel Politzer brings over 30 years of expertise at leading financial institutions, including JPMorgan, UBS and ING. Politzer has extensive experience in trading and investing in several asset classes, and has also served as an advisor to several senior government officials, including ministers of finance and Central Bank governors. He served as Chief Strategy Officer of Patagon, an equity brokerage and online banking firm in the U.S., Europe and Latin America, which was sold to Grupo Santander for $750mm in 2001.
During the financial crisis, BigSur Wealth Management’s clients grew weary of trying to grow their wealth in a highly volatile and poorly performing market. As a result, the Miami-based firm and its clients–mostly wealthy families from Latin America–began exploring opportunities to invest in an asset class with low correlations to the stock and bond markets: commercial real estate.