Private Risk Capital Development Advisors, LLC (PrivateRisk) is an independent global consulting firm specializing in the design, formation, and long-term administration of Private Placement Life Insurance (PPLI) and Private Placement Annuity based solutions. We come together as a team of independent experts specializing in tax, insurance and asset protection law, private equity formation, actuarial science, accounting, risk management and regulatory oversight. Collectively, we have helped clients protect billion dollars of wealth in the US and around the world through private-placement insurance-based structures.
Our clients include family offices, hedge fund owners, tech start-ups, private equity funds, entrepreneurs, publicly traded REIT’s, regional and national real estate operators, professional athletes, musicians, artists, hospitals and medical centers, and other wealth holders in the US and across the globe. Our advanced PPLI and PPA plans have been hailed as “uniquely innovative” in the ways they help build and protect wealth, while all the while being rigorously steeped in their adherence to the United States Internal Revenue Code (“IRC”), the National Association of Insurance Commissioners (“NAIC”), and rulings from the United States Treasury Department. Our plans incorporate flexibility and insurance protection with a focus on a level of efficiency and cost savings that cannot otherwise be achieved through traditional planning alone.
THE EVOLUTION OF LIFE INSURANCE POLICY DESIGN
Over the last 200+ years the life insurance industry has slowly evolved. Many of the most impactful and creative changes have occurred in designing solutions for ultra-high net worth clients. Even so, most practitioners in the space replicate what they have learned from others.
And then there are those who have succeeded in creating something unique.
Today, PrivateRisk develops customized PPLI and PPA policies for families of extraordinary wealth and has also developed methodologies that enable affluent families to enjoy similar benefits. This uniquely positions us to serve a wide range of clients seeking customized Private Placement Life insurance and Private Placement Annuity policies.
While we work closely with our client’s advisors in integrating our solutions, we fundamentally differ from financial planning, brokerage and insurance sales organizations in the way we work and how we are compensated.
We do not compete with our clients’ trusted advisors. We are consultants and developers of custom-tailored solutions, often working hand in-hand with our clients and their existing team of professionals to construct the optimal outcome for each given situation.
Rather than competing over a client’s resources, we elect to not invest or custody their funds. Our focus is consultative in order to protect and amplify the capabilities of our clients and their wealth management team. As the old adage from BASF goes, “we don’t make the colors, we make the colors brighter”.
SELF DEPENDENCE IS OUR STRENGTH
We are not beholden to any insurance companies and are not insurance brokers. This allows us to avoid the bias and inherent contradiction of competing compensation methodologies.
We do not manage assets, and do not accept commission from brokers on investments sold to clients’ PPLI policies.
We have made it a priority to help conceive, develop, form, reinsure, integrate and oversee our clients’ PPLI solutions through constant innovation of our bespoke policy designs. Our clients’ success is further advanced by our independent team of nationally and internationally respected professionals, each holding a deep acumen in their speciality with decades of hands-on experience.
As a fee-based firm, we avoid the inherent bias and fealty owed to insurance brokerage firms, Insurance Marketing Organizations, and PPLI fund-families. PrivateRisk maintains creative autonomy and control of its own plan designs and the services it recommends. Controlling our own destiny means that we are better able to imagine and create original and impactful strategies that best serves our clients’ purpose, rather than meeting the sales requirements of an insurance broker or PPLI fund manufacturer.
PURPOSEFUL PLAN DESIGN
Each aspect and component of the bespoke PPLI structure we design is carefully considered. Nothing is arbitrary. We are not myopic in our vision.
When PrivateRisk tackles a new challenge, such as a client’s urgent need of capital, or meeting their charitable objectives through use of S-Corporation stock when past advisors didn’t think it possible, or obtaining insurance protection for the uninsurable – we often succeed because of our intensive experiential knowledge in all aspects of advanced PPLI planning.
Success occurs through teamwork and vision of subject matter experts holding diverse backgrounds. The end result is a comprehensive solution bearing all the hallmarks professionalism.
QUALITY IS KEY
Clients often tell us that their current planning or strategy is “good”, but they are search of something “better”. Our response? Simply “better” results are insufficient. Our objective is to achieve outstanding results for each and every client. Our presupposition is that if a client could obtain similar or simply better outcomes using traditional planning, they would.
By example, Steven Horowitz, JD, MBA, our general counsel and co-founder, possesses an acute sense of doing things the ‘right’ way. His standards, developed over many years as a practicing tax attorney, law professor, and as a think-tank leader publishing over 100 technical articles in professional journals, is to achieve perfection in each case design and the supporting documentation. From the top down, cutting corners is out of the question.
In order to optimize case design and functionality, years have been devoted by our team members to understand the implications of the United States Internal Revenue Code (IRC). Months are invested in calculating the repercussions and opportunities that can be gleaned from the case law and Internal Revenue Service pronouncements as they evolve. Weeks are spent carefully curating insurance and reinsurance underwriting, analyzing premium financing options and supporting documents to achieve truly bespoke design, and days go into integrating each client’s private placement solution in concert with their trusted advisors.
Given our founder’s exigency for perfection, and because the requests we have for assistance would leave us heavily oversubscribed without substantial barriers to entry, we get to select which candidates we undertake as clients.
A RESOURCE TO COUNSEL
Wealth holders often face complex planning challenges. We are often the first professionals they contact for assistance. We typically formulate and test multiple alternatives in our calculus to develop the solution that works best for each client. We are honored to be sought out for our expertise by leading professional advisors around the world.