Finances are more complicated. An entrepreneur may have sold a business and received stock as part of the purchase price, which creates capital gains and other tax situations that must be addressed. Corporate executives often receive stock options as part of their compensation, complicating their tax situations. Because of their business expertise, entrepreneurs require a trusted advisor, not some one who dictates courses of action. The institutional side is dominated by transactions.
Personal relationships are secondary to product performance.
On the private side, the relationship with the client is paramount. The manager must become a trusted advisor for the individual or family through a rapport built over time. While performance is always an important factor, an individual client is less likely than an institutional client to pull his business after one or two bad quarters. People do business with people they like. Taxes are a key factor when dealing with private clients, especially capital gains, gift, and estate taxes.