Far too often, family offices who are choosing to go down the path of direct investing are unable to articulate an investment strategy beyond that of “we only do good deals.”
Unique insights to drive your family and family office forward, authored by Family Capital Strategy
Investment Governance Articles
Treating a business like an heirloom is a risky proposition. Businesses exist in a dynamic marketplace. While a family may wish to honor its legacy for generations to come through owning and operating the same business – it must also carefully consider whether they are the right owner to steward the business into the future.
There is a tremendous amount of wealth and growth capital being allocated by family offices. We have found the following framework to be helpful in understanding their investment approach.
Family enterprises are basically collections of paradoxes. While paradoxes are often treated in an adversarial manner, it is important to recognize the falseness of such a dichotomy, and work towards creative resolutions.
Selecting the right investment partner for a family office is a question that most offices will choose to answer as they structure their investments.
The 10 best reads to build a family investment office. What can families learn from world class investment managers to improve their investment acumen?
If the family is serious about continuing to grow its wealth across generations, it is highly unlikely that a broadly diversified portfolio alone will achieve that target.
To hit their long-term return targets, families must architect a unique investment approach. Otherwise, the wealth just dwindles away as the family grows and the wealth gets divided. In fairly short order, without additional replenishment, a sizable fortune can be reduced.
There is much speculation about how society will change following the ultimate resolution of the COVID-19 crisis. Call me a skeptic, but I am not convinced that is how humans actually change their behavior.
Instead, I would argue that this virus is hopefully the final nail in the coffin in this era of human history and how we govern and manage society.
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