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Build Your Business Helping Clients Unlock the Value of Illiquid Assets

Issue 3 - December 2008

As corporate executives and business owners know, wealth comes in two forms: liquid and illiquid. However, unlocking the value of illiquid wealth can be a challenge—for clients and investment professionals alike.

Pershing’s Corporate Executive Services can help. Through an array of specialized services and structured transactions, our dedicated team of experts can work with you to help your high-net-worth clients take full advantage of illiquid assets, such as restricted and control stock, concentrated positions, and stock options. Our solutions include:

  • Restricted and Control Stock Sales: Liquidating these positions can be a difficult and time-consuming process. The Corporate Executive Services team can handle all required filings with the appropriate exchanges, obtain opinion of counsel, and facilitate the execution of the transfer—freeing you to focus on managing and growing your business. We can also assist you with the preparation of all required paperwork to satisfy the reporting requirements.
  • Stock Options: If your client wishes to exercise stock options without self-funding the transaction, Pershing can facilitate a number of alternatives, as well as assist in verifying eligibility, processing payment disbursement, and arranging for the timely delivery of the shares.
  • Employee Stock Ownership Plans: The Bank of New York Mellon Shareowner Services provides a full range of administration services for equity compensation programs and stock purchase plans for executives and employees. If your client wants to establish a plan, the professionals at The Bank of New York Mellon can handle the design and implementation, as well as administration of the plan on an ongoing basis.
  • 10b5-1 Trading Plan Solution: Pershing’s Rule 10b5-1 trading plan solution provides a great opportunity for investment professionals looking to expand their offerings to high-net-worth clients. Accessible through NetExchange Pro®, this service allows for creating, tracking, and monitoring a plan. The process is streamlined and automated—enabling you to deliver enhanced service in less time.
  • Hedging and Monetization Strategies: Corporate executives, entrepreneurs who have sold their companies for stock, and others looking to diversify or liquidate concentrated positions can benefit from hedging and monetization solutions offered by The Bank of New York’s Equity Derivative Team. These include zero premium collars, which enable clients to secure the value of their holdings while retaining ownership of the underlying shares, as well as variable prepaid forwards, which reduce exposure to depreciation in the stock price while allowing the client to benefit from stock price appreciation up to the preset threshold.

The demand for innovative liquidity solutions has never been greater. To learn more about Pershing’s Corporate Executive Services—and how we can help you make inroads into this market—please contact your home office.

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