Managing oil and gas mineral assets in trusts was once overlooked. However, these assets are now gaining traction as a key part of high-net-worth portfolios.
Though their popularity within trusts has increased, many firms still hesitate to take them on. These assets are complex, variable, and easy to mismanage. But for firms willing to embrace the challenge, they offer a rare opportunity to deliver differentiated value and deepen client relationships.
A new whitepaper from SS&C MineralWare, Beyond Traditional Wealth: A Guide to Managing Oil & Gas Interests in Trusts, explores how forward-thinking firms use integrated technology and strategic expertise to transform mineral management from a perceived liability into a competitive advantage, thereby differentiating their offerings in the market.
The Overlooked Asset Class
Market volatility and concerns about inflation have accelerated interest in tangible assets. Mineral rights, in particular, offer a stable income potential and enduring emotional ties that can last for generations. For example, a single well on Grandpa’s land can continue to send checks to his great-grandchildren, playing a critical role in a family’s plans to preserve long-term, multigenerational wealth.
Despite their significance, mineral assets are often overlooked, and some trust companies still view mineral holdings as a liability rather than a legacy. Firms with this mindset will lose out to those companies that see the opportunities that mineral assets actually present.
The challenges with this class of unique assets are real, however. Valuations shift with commodity prices. Lease agreements vary. Regulatory requirements differ by jurisdiction. Additionally, the lessee’s business, financial, or operational issues could affect production performance. Managing mineral rights within a trust is not for the faint of heart but, when part of a well-diversified portfolio, they can be a powerful source of family wealth.
A Technology Partner as a Game Changer
The reality is that most firms haven’t engaged with mineral rights simply because it’s easier to say no than build internal capabilities. Or, if firms have decided to manage them internally, they may not have dedicated the necessary resources to proper management. That mindset leaves real value untapped, and billions in mineral wealth are being underserved by firms too cautious to modernize.
To build capacity to handle unique assets, forward-thinking firms partner with a technology provider who has the experience and expertise to handle advanced reporting and analytics. Leveraging the latest technology is crucial to enhancing efficiency, transparency, and risk management across unique assets.
SS&C Black Diamond® Wealth Solutions’ unparalleled expertise, coupled with SS&C MineralWare, empowers family offices, institutions, trusts, and banks to serve clients with unique assets such as minerals, royalties, and non-operated working interests. This integration delivers powerful reporting, intuitive dashboards, and specialized tools, enabling firms to manage and grow these unique client holdings.
With careful planning, accurate and supportable valuations, and strategic use of technology, firms can offer more services to their existing clients, grow their book of business, and reach new heights together.
In a competitive market, standing out means saying yes to what others avoid. Beyond Traditional Wealth: A Guide to Managing Oil & Gas Interests in Trusts outlines how firms can build confidence, scale intelligently, and provide high-value service to clients with oil and gas assets. To learn how MineralWare can support your business, request a personalized demo, call 817-735-8195, or email info@sscblackdiamond.com today.
