Last year the founder and MD of a prominent UK-based wealth management firm died suddenly. It brought forward succession plans that had already been worked out for some time. London & Capital's team reflect on the lessons learned from this sad episode and how they intend to drive the organisation forward.

Late in 2019 the international wealth management sector was saddened by the death of Daniel Freedman, founder of the prominent firm London & Capital. As a result, the business had to bring forward a succession plan which, even in less unhappy circumstances, could have been full of pitfalls. In this article, the leadership team share the lessons they learned with our readers. As always, the editors are pleased to share such views but do not necessarily endorse all statements from outside contributors. Readers should email tom.burroughes@wealthbriefing.com and jackie.bennion@clearviewpublishing.com

Near the end of 2019, London & Capital lost its founder and managing director, Daniel Freedman. As the driving force behind the company and a large personality in the industry, Daniel leaves behind a considerable legacy and his absence will be felt by us and our clients for years to come.

For Daniel, succession planning was not only an important aspect of the advice he gave to his clients, but was central to how he managed London & Capital. His succession planning began in earnest about five years ago with the recruitment of a chief operating officer to allow him to begin to step back from the day-to-day management of the business and focus on his clients. In early 2019, Daniel and the other managing partners outlined a detailed succession plan as part of a wider strategy to grow the business. This plan fits into a broader initiative to ensure compliance with the Financial Conduct Authority’s Senior Managers and Certification Regime.

Transition to a new leadership team
Daniel’s death was sudden and unexpected, but the plan he helped to put in place means that the disruption to the day-to-day running of the business has been kept to a minimum over recent months. Although implemented sooner than anyone intended, the arrangement has meant that our leadership transferred smoothly to a team of three senior partners.

This plan saw Guy McGlashan become chief executive officer in December 2019 (subject to FCA approval) and assume Daniel’s responsibilities in partnership with Iain Tait, head of London & Capital’s Private Investment Office, and Pau Morilla-Giner, chief investment officer – both of whom have expanded their roles and responsibilities.

An important part of running a business
Daniel’s sudden death serves as a reminder to all of us that it is important not to put off succession planning until some point in the future, because there is always that small chance that it will be absent when those around you need it most. 

Making crucial decisions about senior appointments while under pressure can result in rushed choices, while the time taken to select candidates could be better spent running the business. Most importantly, planning for the future leadership of the company is in the best interests of clients.

Planning ahead for a change in leadership also ensures that a company’s ethos is preserved, and experiences are shared with those who will take the business forward in the future.

New leadership, same culture
At London & Capital, the new-look executive team will ensure that our entrepreneurial culture will endure, encouraging all staff to contribute towards the success of the business and find innovative investment solutions for their clients. They will maintain the company’s supportive and collaborative environment in which teams share ideas and work together to make intelligent investment choices.

Guy McGlashan has been with London & Capital since joining in 2015 as COO. As CEO, Guy will take the company forward in accordance with its formal succession plan to ensure its continued growth and success. He will draw on his experience in senior roles at Coutts and Kleinwort Benson to oversee the firm’s growth strategy and implementation of the major projects that will accompany the firm’s expansion plans.

Iain Tait is the main client-facing member of the leadership team, having been involved in both running the company and overseeing the private wealth investment operations for more than a decade. He founded London & Capital’s Private Investment Office in 2013 and is responsible for some of the firm’s largest and most complex international families, based in London and across Europe.

Iain brings a wealth of experience to the leadership team, having run his own wealth management business for five years before joining the business. He has also worked for Freeman, Farmer and Anderson Company, where he became a partner aged just 27.

Pau Morilla-Giner rounds out the leadership team as chief investment officer. Pau joined the firm in 2008 and became the company’s youngest-ever partner and CIO when he replaced Ashok Shah in the role in 2012. 

Pau is responsible for London & Capital’s global investment strategy; he heads up the investment team and oversees more than $ 4 billion in AUM across equities, bonds, commodities and alternative investments, drawing on his previous experience at JP Morgan Asset Management, Omega Capital and Pragma Wealth Management. He is a regular spokesperson for the company, appearing on Bloomberg, CNBC, Sky News and Reuters.

The executive team will seek to build on the values of London & Capital that Daniel upheld since he helped establish the company in 1986, and which have seen it at the forefront of industry developments such as alternative investment strategies and exchange-traded funds.

Remember Daniel while looking to the future
Losing Daniel has been an emotional experience for everyone, but thanks to the plans that he helped to put in place, our future looks bright. As well as targeting £5 billion ($6.52 billion) of assets under management (up from over £3 billion currently), we have bold ambitions. We not only want to expand our existing teams, but we also want to enter new areas of specialist high net worth advice that will reach new clients and provide people with the best financial advice available in the UK.

It is a real tribute to Daniel and his leadership that he built and empowered a highly capable senior management team that will continue to take the business forward. With Guy, Iain and Pau working together at the helm, the company is in good hands, but he will forever be missed.