Introduction
Dear Readers,
We hope you’re having a great start to your year. And unlike our team, which spent most of our January and February in cold and snowy Berlin, we hope that you had the chance to flee to more pleasant domains, whether that’s a ski resort or South Africa.
In February, we were busy conducting annual reviews with our clients. Besides discussing the current events in the market (such as the turmoil in the gold and silver prices in early February, the changes to US tariffs, or the AI fears in software stocks), we were particularly focused on developing a clear picture of where our clients stand: Understanding their income, their spend, the value of current assets, and of course any changes or plans that might affect their holistic financial plan. That way, we can make sure that our clients are on track - or highlight any necessary changes.
Besides that, we are already busy working with many new clients that have reached out to us over the last weeks - tackling topics that range from holistic wealth planning (How To Spend It drove a lot of interest from readers to know ‘their number’), to alternative investments (hedge funds being top of mind), to tax- and structure-related questions (such as wealth transfer, international tax planning, or optimizing across the private and entity levels).
We continue to be excited for the new year - we hope you are as well!
All the best,
Jan & the Cape May team
What’s new with Cape May?
We are happy to welcome Svea Sturm as Senior Analyst at Cape May!
Svea joins us from Liqid, where she spent the last 2,5 years working on market insights for capital markets and alternative investments for both internal and external stakeholders. Prior to Liqid, Svea studied in the US, completing both her Bachelors and her MBA at VCU in Richmond, Virginia on an athletic scholarship.
But that is not all: Svea is a professional athlete, playing in the German Field Hockey Bundesliga in parallel to her professional career. This athletic career has also translated to a broader passion for many sports, including tennis, soccer and basketball, but more recently, surfing (“humbling and meditative, reminding you there’s something bigger than yourself”).
Svea regularly shares her views and insights about the intersection of finance and sports, as well as the wider entertainment industry, on LinkedIn - such as PE’s love for professional sports or a Spanish soccer club’s path to Wall Street. It was exactly this content that brought our attention to Svea - fellow young professionals, take note. 😉
Make sure to give her a follow on LinkedIn, and don’t hesitate to reach out to her about the latest scoop in sports and entertainment!
How we served our clients this month
As last month, we continue to be focused on annual reviews. On a quarterly (or somes bi-annual basis), we sit down with our clients to review the past year with them, identifying where they were on track relative to their financial plan and where we need to make changes. We review matters specific to their situation, such as cases where we help with liquidity management, structural matters such as a wealth transfer to their children, or desired investment into alternative assets like private equity.
And of course, we also speak about the performance of our clients’ managed accounts. 2025 was a great year for our strategies, but we don’t want to rest on our laurels. Events such as the January turbulence amid the US’ claims to Greenland, the sell-off in gold and silver earlier this month, and of course the (potential) 2028 Global Intelligence Crisis (and the subsequent software stock turmoil) are top of mind, and we are keeping an cautious eye on the markets. We continue to feel good about our defensive positioning across portfolios, including for clients who may seek to take on more risk in the future.
Besides those annual reviews, we still had a chance to help (prospective) clients in a multitude of other ways. To name a few:
Updated personalized financial plans for our clients subsequent to their annual reviews, providing us (and our clients) with a clear financial foundation and highlighting areas of improvement that we can work on together across the year
Designed a long-term financial plan and potential entity structure for an investor and their family under consideration of additional expected inflows as well as strict sustainability preferences
Assessed a client’s financial and structural picture to outline 'quick wins’ from a tax and finance perspective, such as proper allocation of income and expenses, trade-offs between distributions and (shareholder) loans, as well as other deductible expenses
Reviewed a client’s liquid portfolio to identify potential ‘easy diversifiers’ to improve the risk-return-ratio in light of their required long-term target return and resulting income requirements
Hosted a workshop with a client and their parent ahead of an expected inheritance-related inflow, outlining potential risk and opportunities as well as ‘Day 1’ structuring considerations for a transfer to the next generation
Worked with a client on setting up a family holding company to allow for a structured wealth transfer to the next generation without endangering the parents’ long-term income needs
Designed and populated a comprehensive reporting sheet for a client’s direct and fund investment portfolio, highlighting risks and opportunities for exit tax optimization ahead of a desired move from Germany to another jurisdiction
Provided a client with an independent commercial review of a venture capital fund investment opportunity, highlighting potential follow-up questions and alignment with their financial plan and investment goals
Collected capital call and distribution notices as well as fund reportings for a client’s fund portfolio for their 2024 annual return, allowing them instead to spend time on their new venture
Introduced a client to private and family office investors across our network for fundraising talks for their current financing round
As you can see, we pride ourselves in supporting our clients in a truly holistic fashion. Judging by last year’s (and of course the long-term) performance of our clients’ managed accounts, that alone is worth our fee, but that’s not enough for us, nor should it be for any advisor/bank out there that you work with. More than one client highlighted during their annual review that they have yet to meet an advisor who can provide our level of service to clients with a level of wealth such as theirs - a fact that makes us incredibly proud. 🙂
If that resonates with you, or if you know someone who could benefit from our holistic approach, don’t hesitate to reach out.
Cape May in the News
Jan made an appearance on the Marktgeflüster podcast, touching on topics such as an influencer’s SPAC transaction, the (ongoing) rise of Trade Republic, European tech sovereignty, as well as a few market news.
If you have a podcast, a blog, or another type of publication that you think would benefit from our views and network, don’t hesitate to reach out.
Cape May Wealth Weekly
This month, we covered a number of topics:
In The State of Lending (which, as one reader pointed out, should actually be The State of Borrowing), we discuss debt options available to affluent investors, such as margin loans or borrowing against fund portfolios.
In Fall of the Empire, we share our view on how investors can hedge against the (alleged) decline of the West, such as diversifying across jurisdictions and asset classes, as well as thoughts on potential hedges.
In Gold: A Primer, we give our overview of why how investors should think about gold (and other commodities) in their portfolio - but also make sure to highlight areas where the myth of gold might not match the reality.
In Investing for Early-Stage Entrepreneurs, we highlight our tips and tricks on how individuals that have just began their start-up journey should think about investing.
As always, if you have feedback or a specific topic you’d like to see addressed, let us know.
Final Remarks (and Asks)
On March 11, Cape May and Emergence Ventures are hosting an event in Berlin about the Case for Funds of Funds: Outlining why we think that FoFs are often misunderstood and somewhat underrated, and how Emergence is trying to think VC FoFs differently from other GPs that might be more focused on ‘brand name’ funds. If you are based in Berlin and interested in investing in VC fund of funds, let us know.
We are seeing a larger number of investment opportunities in the ‘tech-enabled roll-up’ space across funds and direct investing opportunities. If you are interested in investing such companies or funds, let me know and I’d be happy to send you a few opportunities that we have come across from our client base.
Thanks for taking the time to read this monthly review - and see you soon again in your inbox for next week’s newsletter!
Cape May Wealth Advisors is a Berlin-based wealth management firm focused on helping affluent entrepreneurs find financial independence. If you are interested in learning more about how we can help you, reach out to us via email, and make sure to subscribe to our newsletter.
