EquityZen Senior Business Development Associate Brianne Lynch in RIA Intel

Where Advisors Are Turning to Manage Concentrated Holdings and Invest in Pre-IPO Companies

These platforms may be quite handy during a booming bull market.

The S&P 500 Index — which has roughly doubled in value since the start of 2017 — surged another 21 percent through the first eight months of 2021 and many individual stocks have tripled or quadrupled in that time. Those gains have been mirrored or bested by shares of privately held companies achieving ever-higher valuations through serial capital raising.

For workers who have seen their net worth surge along with their employer’s stock, the gains have been a blessing and a curse. It’s great the shares are worth more. But too much net worth tied up in one company can be a challenging risk to manage, even with a financial advisor. Concentrated private holdings can be even more challenging.

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