Category: family office blog

Five Steps to Organize a Good Family Office Board Meeting
Five Steps to Organize a Good Family Office Board Meeting

Five Steps to Organize a Good Family Office Board Meeting

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In this article, we describe how to structure good family office board meetings – from the initial design of objectives to a follow-up after the meeting.

Step 1: Define the Meeting Purpose and Objectives

Begin by clearly defining the purpose of the meeting. Is it a regular review of investments, a discussion on governance policies, or a deep dive into
specific challenges? Establish clear objectives to ensure the meeting stays focused and productive.

For example, if the meeting focuses on succession planning, outline topics like mentoring programs, leadership transitions, and role assignments for family members.

Step 2: Create a Detailed Agenda

A well-structured agenda is critical for a successful meeting. Include key topics, allocate time for each item, and prioritize discussions that require immediate attention.
Share the agenda with participants ahead of time so they can prepare.

Example agenda items might include financial performance reviews, strategic decisions, updates from external advisors, and open discussions for family input.

Step 3: Involve the Right Participants

Ensure the meeting includes all necessary stakeholders. This typically involves family members, board members, and external advisors such as financial, legal, or
tax experts. Tailor the participant list to the meeting’s objectives to avoid overcrowding while ensuring relevant perspectives are represented.

For instance, a meeting to discuss investment strategies might require the presence of the family office’s portfolio manager alongside the family’s financial advisor.

Step 4: Prepare and Distribute Pre-Meeting Materials

Provide participants with pre-meeting materials, including financial reports, performance summaries, and other relevant documents. This ensures everyone
arrives prepared and reduces the need for lengthy presentations during the meeting.

For example, a quarterly investment review might include portfolio performance summaries, market analysis, and proposed investment opportunities.

Step 5: Facilitate and Follow Up Effectively

Designate a skilled facilitator during the meeting to ensure discussions stay on track and time is managed effectively. Encourage open dialogue while maintaining
professionalism and respect. After the meeting, circulate detailed minutes, highlight key decisions, and outline the next steps.

For example, after approving a new family governance policy, follow up with an implementation plan and assign responsibilities to ensure progress.

Picture Source: Getty Images

Definition: Family Office Board Meetings
Definition: Family Office Board Meetings

Definition: Family Office Board Meetings

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In this article, we describe the important structure of family office board meetings. Many family offices, like Bessemer Trust, offer this service for their clients.

What Are Family Office Board Meetings?

Family office board meetings are structured gatherings of key stakeholders within a family office to discuss strategy, governance, and the management of
family assets. These meetings typically include family members, board members, and external advisors, ensuring that decisions align with the family’s
vision and long-term objectives.

The Purpose of Family Office Board Meetings

The primary purpose of these meetings is to facilitate transparent communication, make informed decisions about investments, succession planning, and risk
management, and maintain alignment with the family’s mission. Board meetings also serve as a forum for addressing emerging challenges and ensuring the
continued professionalism of the family office.

Imaginary Example: The Braun Family Board Meeting

The Braun family runs a multi-generational family office overseeing assets worth $500 million, including real estate, investments, and a private equity fund.
During their quarterly board meeting, key topics discussed include:

  • Performance updates on the real estate portfolio, including a potential acquisition of a commercial property.
  • Review of next-generation education programs, ensuring younger family members are prepared to take active roles.
  • Approval of a sustainability initiative aligning the family’s investments with their environmental values.

Decisions from this meeting set the foundation for both immediate actions and long-term strategies for the family office.

Key Components of a Family Office Board Meeting

Effective family office board meetings typically include the following components:

  • Agenda Setting: A well-prepared agenda ensures that discussions are focused and productive.
  • Performance Reviews: Regular updates on financial and operational performance provide insights for informed decision-making.
  • Governance Updates: Discussions about succession planning, risk management, and governance policies maintain alignment with family goals.
  • Education and Training: Sessions to involve and prepare younger generations for future responsibilities.
  • Expert Input: External advisors often provide specialized knowledge on tax, legal, or market-related matters.

Imaginary Example: The Chen Family Annual Governance Review

The Chen family, with diverse global investments, holds an annual governance-focused board meeting. This year, their agenda includes:

  • Reviewing the family constitution and making updates to reflect changes in family dynamics.
  • Electing a next-generation family member to the board as part of a mentorship program.
  • Hearing from a legal expert on changes in international tax laws affecting the family’s investments.

These discussions strengthen the family office’s governance framework and ensure continued alignment with the family’s shared vision.

Picture source: Dane Deaner

What is a "lifestyle concierge" service of family offices?
What is a “lifestyle concierge” service of family offices?

What is a “lifestyle concierge” service of family offices?

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A “lifestyle concierge” service, as offered by family offices, refers to providing personalised assistance and managing non-financial aspects of a family’s daily life. The objective of this service is to enhance convenience, save time, and support a luxurious and well-organised lifestyle. This service is designed for high-net-worth (HNW) and ultra-high-net-worth (UHNW) families, with the objective of fulfilling their personal, travel, and household needs with the same level of precision and care that is applied to their financial affairs.

The scope of lifestyle concierge services is extensive and can be tailored to the specific needs and preferences of each family member. Such tasks may include the arrangement of luxury travel itineraries, the securing of reservations at exclusive restaurants or events, the management of household staff, and the oversight of the maintenance of multiple residences. The service is intentionally comprehensive in scope and designed to meet the diverse and evolving needs of affluent families.

One of the fundamental advantages of lifestyle concierge services is the consolidation of personal management tasks. For families responsible for managing multiple properties, yachts, private jets, or extensive art collections, the concierge service provides a comprehensive solution that eliminates the stress of logistics and operational details. By delegating these responsibilities to the family office, families can concentrate on their personal and professional endeavours without distraction.

Furthermore, lifestyle concierge services frequently extend into domains of personal growth and well-being. Family offices may coordinate wellness programmes, secure private tutors, or facilitate distinctive experiences such as exclusive art tours, bespoke shopping events, or private cultural performances. The objective is to create value beyond wealth by enhancing the overall quality of life for family members.
Additionally, discretion and confidentiality are of paramount importance. Family offices are uniquely positioned to handle sensitive personal arrangements while maintaining privacy.

Picture source: Unsplash+

What Are Multi-Generational Families – and why does it matter for family offices?

What Are Multi-Generational Families – and why does it matter for family offices?

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In the context of family offices, the term ‘multi-generational family’ describes a household or extended family group spanning two or more generations. These families are often unified by shared wealth, businesses, or other significant financial assets. Such families often comprise grandparents, parents, children, and occasionally even great-grandchildren, all of whom may have an interest in the family’s collective wealth or enterprises. The multi-generational nature of such families introduces a number of complexities in managing their collective wealth, the governance of their affairs, and the planning of their legacy. In order to address these challenges, family offices have become an essential tool.

A defining characteristic of multi-generational families is their long-term approach to wealth management. The focus is frequently extended beyond the immediate generation to encompass the preservation and growth of assets for future descendants. This perspective necessitates implementing strategic planning in domains such as estate management, establishing trusts, and creating governance structures that ensure clarity and harmony among family members. It is challenging to balance the interests and priorities of different generations, but it is crucial for maintaining unity and stability within the family.

Family offices are of pivotal importance in supporting multi-generational families. They provide bespoke solutions for the administration of shared assets, the supervision of investments and the implementation of tax-efficient strategies that are aligned with the family’s objectives. Furthermore, family offices frequently assist in designing and enforcing governance frameworks, such as family constitutions or councils, to facilitate decision-making and resolve conflicts. These frameworks are especially crucial for managing disagreements arising from differing priorities or values between older and younger generations.
Philanthropy is another domain where multi-generational families frequently engage deeply. Family offices often coordinate charitable activities, ensuring that giving aligns with the family’s shared values while involving members of all generations. This approach not only strengthens the family’s cohesion but also

What Is a UHNW (Ultra-High-Net-Worth)? Our definition

What Is a UHNW (Ultra-High-Net-Worth)? Our definition

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The term UHNW, or Ultra-High-Net-Worth, is used to describe individuals or families with investable assets exceeding $30 million. This classification is employed within the financial and wealth management industries to differentiate the wealthiest clients from other categories, such as High-Net-Worth (HNW) individuals, whose assets commence at $1 million. The UHNW designation serves to highlight the distinctive financial circumstances and requirements of these individuals, who typically possess substantial and diversified portfolios. Many UHNW’s can be found on the Forbes list.

It is not uncommon for UHNW individuals to hold their wealth in forms that extend beyond cash or liquid assets. Such individuals may also possess a variety of assets, including ownership of private companies, significant real estate holdings, art collections, hedge fund investments, private equity stakes, and even assets in emerging technologies or cryptocurrencies. The management of such a diverse array of holdings necessitates the input of specialised expertise, sophisticated financial planning and, in many cases, the input of a dedicated team to oversee the various aspects of wealth management.

This level of wealth presents a duality of opportunity and challenge. For instance, UHNW individuals often engage in global operations, with assets and business interests dispersed across multiple jurisdictions. Consequently, the optimisation of taxation becomes a significant issue, necessitating a comprehensive grasp of international tax legislation and agreements. Succession planning is another crucial area of concern for many UHNW families, as they seek to preserve their wealth across generations. This necessitates the implementation of detailed estate planning, the establishment of appropriate trust structures, and the creation of effective governance frameworks to ensure long-term stability.

Family offices are particularly relevant to UHNW individuals and families. These private entities provide a centralized approach to wealth management, offering services such as investment oversight, tax coordination, philanthropic planning, and lifestyle management. In contrast to standard financial advisors, family offices are able to tailor every aspect of their service to the specific needs and values of the family, creating bespoke strategies that reflect the unique circumstances and objectives of the family in question.

What are 5 ways to get a family office invest in your artwork?
What are 5 ways to get a family office invest in your artwork?

What are 5 ways to get a family office invest in your artwork?

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For artists and galleries, securing investment from a family office can be a significant achievement. Family offices often seek unique and valuable artwork for their collections. Here are five strategies to attract investment from a family office for your artwork.

1. Understand the Investment Preferences of Family Offices

Overview: Family offices may have specific preferences or themes guiding their art investments. An example is the art investment thesis of the Dr. Giesen Family Office.

Strategy: Research the art investment trends among family offices. Tailor your approach to align with their interests, whether they favor contemporary, classical, emerging artists, or specific art movements.

2. Build a Strong Portfolio

Overview: A compelling portfolio that showcases the depth and breadth of your work is essential.

Strategy: Develop a professional portfolio that highlights your best work, artistic journey, and unique style. Include press mentions, exhibitions, and any awards or recognitions.

3. Network in Art and Investment Circles

Overview: Networking is key in the art investment world. Building connections can open doors to family office investors.

Strategy: Attend art fairs, exhibitions, and investment events. Engage with art advisors and consultants who may have direct connections with family offices.

4. Demonstrate Investment Value

Overview: Investors, including family offices, seek artworks that have potential to appreciate in value.

Strategy: Present a compelling case for the investment potential of your art. Include market trends, comparison with similar artists, and any factors that may increase the artwork’s value over time.

5. Leverage Online Platforms and Social Media

Overview: The digital world offers powerful tools to showcase your art to potential investors.

Strategy: Utilize online galleries, art platforms, and social media to reach a broader audience. Create high-quality digital content that highlights your artwork’s unique aspects.

Conclusion

Attracting investment from a family office for your artwork involves understanding their investment preferences, building a strong portfolio, networking effectively, demonstrating the value of your art, and leveraging digital platforms. By adopting these strategies, artists can increase their chances of securing family office investments.

Picture Source: Debby Hudson

What are 5 reasons why single family offices move to Luxembourg?
What are 5 reasons why single family offices move to Luxembourg?

What are 5 reasons why single family offices move to Luxembourg?

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Luxembourg has emerged as a preferred destination for single family offices. This small European country offers a unique combination of financial, legal, and lifestyle benefits that are attractive to high-net-worth families. Here are five key reasons driving this trend.

1. Favorable Regulatory Environment

Overview: Luxembourg offers a well-regulated and secure financial environment, which is a major draw for family offices.

Details: The country’s financial regulations are designed to protect investors while offering flexibility in wealth management and investment strategies.

2. Political and Economic Stability

Overview: Stability is a critical factor for wealth preservation, and Luxembourg provides a politically and economically stable environment.

Details: Its stable government, strong economy, and low debt levels make it a safe haven for family assets.

3. Tax Efficiency

Overview: Luxembourg’s tax regime is favorable for investment and wealth management, making it an attractive destination for family offices.

Details: The country offers advantageous tax treatments for investments and a favorable regime for holding companies.

4. Strategic Location and International Connectivity

Overview: Located in the heart of Europe, Luxembourg is well-positioned for international families looking to manage assets across multiple jurisdictions. The hub also offers a “Luxembourg Association of Family Office“, giving strong network effects.

Details: Its central location provides easy access to major European markets and financial centers.

5. Sophisticated Financial Services Sector

Overview: Luxembourg boasts a sophisticated financial services sector with a wealth of expertise in private banking and wealth management.  One of the largest, most sophisticated banks is the Banque et Caisse d’Epargne de l’Etat (Spuerkeess).

Details: Family offices can benefit from the high level of professional services and financial expertise available in the country.

Conclusion

Luxembourg presents a compelling combination of regulatory benefits, economic stability, tax efficiency, strategic location, and financial expertise, making it an ideal location for single family offices looking for a European base.

Picture Source: Cedric Letsch

What are the 5 most important family office hubs globally?
What are the 5 most important family office hubs globally?

What are the 5 most important family office hubs globally?

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Family offices are integral to global wealth management, offering bespoke services to high-net-worth families. Certain cities around the world have become key hubs for these family offices, thanks to their favorable business climates, financial expertise, and quality of life. This article highlights the top five global hubs for family offices.

1. New York City, United States

Overview: As a financial capital, New York City hosts numerous family offices. Its status as a global finance leader makes it a top choice for family wealth management. An example here is the Dell Single Family Office.

Advantages: Access to top financial institutions, a diverse talent pool, and significant networking opportunities in finance and business.

2. London, United Kingdom

Overview: London’s historical and cultural significance, combined with its financial services expertise, makes it a preferred location for family offices. An exemplary, major single family office from London is the Corniche Group.

Advantages: A global financial center, London offers robust legal and fiscal frameworks, diverse investment opportunities, and a central location for international families.

3. Zurich, Switzerland

Overview: Known for its stability, privacy, and strong financial sector, Zurich is a leading hub for family offices in Europe. An important example here is the Jacobs Holding.

Advantages: Political and economic stability, stringent privacy laws, and expertise in wealth management and private banking.

4. Hong Kong

Overview: As a gateway to Asia, Hong Kong is a strategic location for family offices looking to invest in the Asian markets.

Advantages: Proximity to emerging Asian markets, a favorable tax environment, and a blend of Eastern and Western business practices.

5. Singapore

Overview: Singapore’s favorable regulatory environment and strategic location in Southeast Asia make it an attractive hub for family offices.

Advantages: Political stability, a business-friendly environment, strong regulatory frameworks, and access to the growing markets of the ASEAN region.

Conclusion

These global hubs offer unique advantages for family offices, from access to major financial markets and investment opportunities to political stability and favorable regulatory environments. Their prominence underscores the increasingly global nature of family wealth management.

Picture source: Matteo Catanese

What are 5 reasons why single family offices are great investors for your startup?
Five reasons why single family offices are good investors for your startup

Five reasons why single family offices are good investors for your startup

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Single family offices are becoming increasingly popular as investors in the startup ecosystem. Their unique approach to investment offers several advantages for emerging businesses. Here are five reasons why they could be ideal partners for your startup.

1. Long-Term Investment Perspective

Overview: Unlike traditional venture capital firms, single family offices often have the luxury of taking a long-term view on investments.

Benefits: This approach allows for more patient capital that is less focused on quick returns and more on sustainable growth, providing startups with a stable financial runway.

2. Access to Extensive Networks

Overview: Family offices typically have access to a wide network of industry professionals, advisors, and other entrepreneurs.

Benefits: Startups can leverage these networks for strategic partnerships, mentorship, and market access, enhancing their growth prospects and market visibility.

3. More Than Just Money

Overview: Family offices often provide more than just financial support; they bring in a wealth of experience and knowledge. Most family offices still have their family business in the background, which could also yield first customers.

Benefits: They can offer valuable insights, mentorship, and strategic guidance, helping startups navigate the complexities of their growth journey.

4. Flexibility in Investment Terms

Overview: Family offices tend to be more flexible regarding investment terms and structures compared to traditional venture capital firms. This can be also helpful for untraditional ventures, that have for instance a longer growth horizon or slower growth speed.

Benefits: This flexibility can be crucial for startups seeking bespoke arrangements that align with their specific needs and growth plans.

5. Alignment of Values and Vision

Overview: Single family offices often invest in areas that resonate with their personal values and long-term vision.

Benefits: Startups that align with these values may find a deeper, more meaningful partnership, leading to a strong, aligned collaboration.

Conclusion

Partnering with a single family office can offer startups a unique blend of financial support, strategic guidance, and flexible investment terms, all underpinned by a commitment to long-term value creation. Understanding these benefits is key to forging successful partnerships with family office investors.

Picture source: Israel Andrade

What are 5 Ways to Get in Touch with Single Family Offices?
What are 5 Ways to Get in Touch with Single Family Offices?

What are 5 Ways to Get in Touch with Single Family Offices?

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Reaching out to single family offices can be a nuanced process, requiring both tact and strategy. Whether for investment opportunities, partnerships, or offering services, here are five effective ways to establish a connection.

1. Networking Events and Conferences

Description: Industry-specific events provide a platform for professionals to network, including those from single family offices. One example for them are the SuperReturn investor events, where many LPs and GPs meet.

Approach: Attend finance, investment, and wealth management conferences. Participate actively in discussions and use these opportunities to meet family office representatives.

2. Professional Networking Platforms

Description: Online professional networking platforms like LinkedIn are powerful tools for connecting with industry professionals.

Approach: Create a compelling profile, join relevant groups, and engage in discussions. Reach out to family office professionals with personalized messages.

3. Industry Associations and Clubs

Description: Many family offices are part of industry associations and private clubs that facilitate networking and information exchange.

Approach: Join these associations, participate in their events, and engage with members. Build relationships that can lead to introductions.

4. Referrals from Mutual Connections

Description: Referrals are a powerful tool in the business world, and this holds true when trying to connect with family offices.

Approach: Leverage your existing network to find mutual connections who can introduce you to family office executives.

5. Targeted Outreach through Research

Description: Conducting thorough research can lead to tailored outreach strategies that resonate with specific family offices.

Approach: Identify family offices whose interests align with your offerings. Use publicly available information to understand their focus areas and tailor your outreach accordingly.

Conclusion

Connecting with single family offices requires a blend of strategic networking, leveraging technology, and utilizing personal connections. Understanding the unique nature of each family office and approaching them with a tailored strategy is key to establishing a successful connection.

Picture Source: Linda Gerbec