Concentrated Stock Strategies for Wealth Creators
From pre-IPO positions to liquidity events, we help wealth creators make informed decisions with confidence.
Who We Serve
We help founders, executives, early employees, investors, and families navigate liquidity, tax, and diversification decisions with strategies tailored to their unique circumstances.
Founders
& CEOs
Preparing for an IPO, acquisition, secondary sale, or other liquidity event.
Executives &
Key Employees
Managing stock compensation, restricted shares, and concentrated positions accumulated over time.
Private Equity
& Venture Investors
Managing concentrated positions resulting from successful private investments and distributions.
Families & Multi-Generational Wealth Holders
Addressing inherited stock positions, legacy holdings, and long-term wealth transfer objectives.
Investors with Highly
Appreciated Assets
Evaluating tax-aware diversification strategies for low-basis stock and concentrated portfolios.
Pre-IPO
Shareholders
Developing tax, liquidity, and diversification strategies before a public offering or other transaction.
A Customized Approach to Concentrated Stock Planning
A Customized Approach to Concentrated
Stock Planning
Every concentrated stock position is different. We build customized strategies aligned with your goals, tax considerations, liquidity needs, and long-term vision.
Step 1.
Understand Your Objectives
- Liquidity needs
- Tax considerations
- Estate planning goals
- Philanthropic intentions
- Risk tolerance
Step 2.
Evaluate Opportunities & Constraints
- Cost basis analysis
- Rule 144 and insider restrictions
- Vesting schedules
- Company-specific considerations
- Existing planning structures
Step 3.
Build & Integrate a Coordinated Strategy
- Wealth strategy
- Tax planning
- Estate planning
- Banking and lending
- Investment management
Step 4.
Implement &
Monitor
- Strategy execution
- Advisor coordination
- Ongoing portfolio monitoring
- Liquidity event planning
- Plan adjustments over time
Our Family Governance & Education Team
Our team is a mix of facilitators and financial educators with backgrounds in coaching, philanthropy, education, and family therapy. We work together to consistently bring creativity, sustainability, and best-in-class delivery while maintaining our availability to serve our clients’ most pressing needs, both proactively and as they arise.
Meet With Our Team
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Frequently Asked Questions
What is a concentrated stock?
A concentrated stock position generally refers to a single stock representing more than 10%–20% of a portfolio’s value, although the specific threshold may vary depending on the investor’s circumstances and objectives.
When should I start planning for an IPO or liquidity event?
The earlier the planning process begins, the more opportunities may be available to optimize tax strategies, manage liquidity, and align your concentrated stock position with your broader wealth goals. Ideally, planning should begin well before an IPO, acquisition, tender offer, or other transaction.
Can I diversify a concentrated stock position without triggering a large tax bill?
Depending on your circumstances, there may be strategies available to help reduce concentration risk while managing tax consequences. These can include tax-efficient diversification strategies, exchange funds, charitable planning, options-based strategies, and phased liquidation plans.
What percentage of my portfolio should be in a single stock?
There is no one-size-fits-all answer. However, many investors begin evaluating diversification strategies when a single position exceeds 10%–20% of their investable assets. The appropriate allocation depends on factors such as liquidity needs, risk tolerance, tax considerations, and overall wealth.
What should I do with low-basis stock?
Low-basis stock often requires careful planning because selling shares can trigger significant capital gains taxes. A comprehensive strategy may evaluate diversification, charitable giving, estate planning, and tax-management opportunities before any action is taken.
How can charitable giving help with a concentrated stock position?
Donating appreciated stock to certain charitable vehicles may help reduce or eliminate capital gains taxes on donated shares while supporting philanthropic goals. Common strategies include donor-advised funds and charitable trusts.
Do I need a strategy if my company stock is still private?
Yes. Pre-IPO and pre-transaction planning can help position you for future liquidity events by evaluating tax considerations, estate planning opportunities, exercise strategies, and diversification goals before a transaction occurs.
How does Cresset help clients manage concentrated stock positions?
Cresset brings together investment management, wealth strategy, tax planning, estate planning, banking and lending, and philanthropic planning to develop customized strategies tailored to each client’s goals and circumstances.
