Commentary-Special Assets-Print


Roger Kummert, Commerce Trust Company Real Estate and Special Assets Manager, covers the reasons why having a professional manager for illiquid assets is a valuable commodity in the high stakes world of material resources. Roger’s team handles real estate holdings, which can include commercial properties, farm acreage, and parcels with timber, precious minerals, or oil and gas assets, as well as closely held business interests. Q. WHAT ARE SPECIAL ASSETS AND WHAT MAKES THEM SPECIAL? A. Special assets are typically private business interests, properties or natural resources that can be difficult to convert directly to more liquid investments, like cash. In fact, I prefer to use the term illiquid assets rather than special assets. Q. WHAT DO SPECIAL ASSET MANAGERS LIKE YOURSELF DO FOR PEOPLE? A. When called upon, we put professional resources in place to manage all kinds of ongoing enterprises, including oversight of family owned businesses, which can be structured as corporations, limited partnerships or limited liability corporations. We also have professional asset managers who take care of real estate assets such as farm acreage, residential real estate, office buildings and timber properties, as well as mineral assets, including oil and gas. It’s amazing the diversity we get. Q. WHEN DO PEOPLE ASK TO ENGAGE YOUR SERVICES? A. This usually happens when an ongoing enterprise is in transition, whether that is prompted by a change in ownership, a death in the family, or some other major event that causes a disruption in normal operations. In the case of a closely held firm, for example, an appointed family member or trustee involved in a transition may be inexperienced in business operations and find themselves overwhelmed when held responsible for day-to-day business activities. They may not possess the industry knowledge to keep the business operating smoothly and we can help with that circumstance if called upon. It pays off for people to recognize where their strengths are and when it’s time to turn to a business advisor with broader expertise when appropriate. We’ve acquired a broad range of experience in many industries over the last several decades and this uniquely positions us to be of help during these business transitions. Q. HOW MUCH SPECIAL ASSETS BUSINESS DOES COMMERCE TRUST COMPANY HANDLE? A. In total, we are responsible for about $2 billion in illiquid assets. People tell us they come to Commerce because the professional expertise to purchase, profitably manage or sell these types of assets is hard to find under one full-service money management roof. Managing Real Estate, Farm Operations and Other Closely Held Interests or Special Assets Is No Task for the Inexperienced By Roger Kummert

Wealth | Investments | Planning Commerce Trust Company

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