The recent wave of mergers and acquisitions within the multi-family office field led to an opinion that the industry will soon divide into a few wealth management giants and numerous small advisories.
According to multiple reports, family offices are taking a more hands-on approach during the pandemic times by directly investing in companies that seek capital.
According to a recent global report, family offices are actively funding innovative businesses. As a result, there is a visible boost in the venture capital segment and good returns for the FOs.
Succession planning is a valid concern for all affluent families across the map. However, due to various geographical and cultural factors, the Middle Eastern family businesses need to approach the issue slightly differently.
On August 10, 2020, Keystone Capital Partners announced the establishment of its investment platform led by hedge fund expert Fred Zaino.
As compared to tradition family offices, the modern ones, focus on making the best use of capital by finding deal flow in emerging markets such as Blockchain or Cannabis. Modern family offices focus on transparency and provide access to in-depth information, which was never available for traditional models. It is mostly because the former focuses on wisely using the money within a client’s lifetime, while the latter had the goal of preserving the wealth for future generations.
The family office is often difficult to understand and analyze because it is known to be secretive in its conduct in the private wealth landscape. Because of this, the traditional techniques of targeting potential clients do not work as well as they once did.
The world’s rich, reminded of their own mortality, are setting up family offices in greater numbers and plumping for Singapore as a base, according to Monetary Authority of Singapore Deputy Director Spencer Hsu.
A report called ‘Mapping the Location and Assets of the Family Office Ecosystem’ was released by FINTRX. The latter provides data and information on high-net worth individuals and the report provides insight on where these wealthy individuals are investing their funds.
However, real estate investors may find the report hard to digest. They need to be thoroughly assessed, along with their pros and cons as compared to real estate.
Family offices spend years focusing on wealth management and creating investment strategies. However, this isn’t time to kick back and relax until everything goes back to normal. Consider this as the perfect opportunity to make those desperately needed evaluations and changes offered.