Capital Management

Wealth Management

Capital Management




Capital management refers to the use of customized investment approaches to provide investment management services. These services are generally utilized by corporate and public pension funds, endowments, foundations, and high net worth individuals.


There are several methods of managing capital.  Generally, the goal of capital management is to expand capital and income at a rate in excess of inflation, while at the same time preserving principal. In addition, effectively managing risk helps to avoid financial distress and maintain financial performance within the guidelines that is acceptable to investors.


The proper blend of bonds, cash equivalents, and a range of diversified equities will generally make up a customized plan. Therefore, an investor evaluation process is undertaken to determine not only the clients’ goals, but their investment objectives, risk tolerance, tax status and rate, projected future cash flows, philanthropic and other goals, and current and future income requirements. Without this knowledge and understanding, a customized asset allocation for a client would not be possible.


Capital management entails a research prior to making or acting on any investment decisions. It is important to analyze the economic, political, and technical factors that could affect investment performance. This includes an understanding of world markets, detecting shifts in consumer preferences, government spending, and capital spending, and recognizing changes in investor preferences.


Many capital management firms act not only as advisors, but also as a financial partner to their clients. Some additional services offered by capital management firms can include succession management, sales and marketing support, business strategy, analysis and execution, recruitment, start up and lift out assistance, and collaboration opportunities.


When choosing a capital management firm, it is imperative that the advisors have the proper character, background, and experience to work seamlessly with their clients and maintain a successful partnership.


The terms “capital management”, “wealth management”, “financial planning” and others can mean different things to different professionals and experts. Investors should first determine their needs and then work to select a professional who fits those needs.