What type of relationship do you have with your bank?
Would you say that you and your financial institution are a partnership?
Are you both benefitting when the other succeeds?
For most of you, unless you work for the bank, the answer is most likely no. This relationship is more of the transactional nature than of the partnership type.
When you talk to your investment advisor or your investment broker these individuals are typically selling an array of products that your financial institution offers. Many of these products may be profitable and safe, but the process of ownership is a completely one-sided relationship. The broker sells you a product, collects a fee and is not responsible for the outcome of their suggestive bet. Don’t you feel like something as precious as your savings deserves more importance from the person making the financial decisions?
Most often in life, and finance, the best outcomes are a result of a strong partnership. Ones where both parties are just as invested in the others well-being as their own. The best marriages survive on this foundation, as do the strongest of businesses that work in harmony with their stakeholders and shareholders.
In our business at Two Sevens Capital we spend lots of time looking at new and exciting potential deals for our clients. These opportunities often take months of sourcing, due diligence, and structuring before they can come to fruition. In some cases, even after all this work, it becomes inevitable that the opportunities do not offer the right experience for our clients, our partners.
These exploratory deals are often ones that look extraordinary on the surface, and excellent when getting into the details. They are deals that would satisfy any investment dealer by seeking a transactional relationship with an investor. But when the business itself is invested in an opportunity, as Two Sevens Capital is, alongside the client, with the same interest and success metrics, it makes every single solution brought forward that much more important. Especially when these solutions last several years. That is why, we scrutinize every opportunity with the utmost importance to ensure that it provides both the right benefit to a client and satisfies a partnership relationship.
In building this business, we have set a goal to create a firm that we would want to be a lifetime client of. That is our hope for all our investor partners and business partners. We recognise that an investor has worked hard for their money, and that we need to match their effort with both the offerings we put forward, and with the partnership we want to last a lifetime.
The next time you look to make a big financial decision or look to invest your hard-earned cash, perhaps consider what the person across the desk stands to lose. The traditional model of investing is not a partnership it is a transactional relationship with nice customer service. True wealth creation can only be achieved through strategic partnerships, ones where both parties stand win and lose with every decision being made.
