Family Office Advisor – A View of the Industry

What I wanted to do is provide you with a view of the forest as a family office advisor. There is a financial times article that came out recently that had some numbers in it about the industry that I did not really agree with. At lots of conferences I hear people say things I do not really agree with about the industry. I have met in person face to face with over a thousand family offices now, I know over 50 billion dollar families. So we have a lot of perspective of the forest of what is going on within the industry.

I wanted to share some of the advice with you here so you can hear from somebody directly who has focused his whole life on the industry. First of all, there are over 10,000 offices globally. I heard a well-respected organization say recently that there are only one hundred in Asia and I know that there are well over one hundred in Singapore alone. Hong Kong is a big competitor and are many being started in China as well. Part of it depends on your definition of a single family office, but there are many throughout the world. I would estimate there to be over 10,000 globally and the industry is really thriving. quicken family office

What I want to focus on now a few quick bullet points and a 10,000 foot perspective of what is going on within this space.

  • Globally the industry is thriving, but some people in local geographies feel like it is moving very slowly for them. I was recently in Toronto to speak at an event and people were saying that in Canada they feel like thendustry is pretty new there, but people have been saying that for ten years.
  • There are only two to three formal family offices publicly known in Prague, but there are quite a few that are not publicly known. It is moving slowly in countries like the Czech Republic, Turkey, and even in Brazi.it is moving slowly for the amount of wealth that is there. It is thriving, but in certain geographies it is a slow process.
  • There is a big private banking vs family office turf war going on. Places like Singapore and Hong Kong there are big battles. Private banks try to keep the assets within their reach. As a result, private banks have been launching family office platforms for their private banks.
  • Talent is very scares in the industry. Family office executive search needs are growing, as well as family office recruiting and recruitment needs.
  • Single family offices are doing more co-investing and direct investing. They are really taking matters into their own hands after 2008 to 2011 economic crash.
  • In the future what we are going to see are more industry expansion globally, more single family offices, direct investing and co-investing investment clubs, and more formalization of the industry. There will be whole training programs, associations, and books on single family offices.
  • As the industry matures globally, what we are going to see is a much greater pool of talent and professionals working in the space. If you are a financial advisor, that is good news. But if you are an ultra wealth professional looking for solution within the industry, you might have to wait until one is available locally for you. If you are looking for resources in the space there is more available every single day.

That’s a quick overview of family office advisory insights from my perspective from working with many different families. There is a great need to provide more transparency and knowledge in the industry. I see my role as connecting people together and to connect people with the knowledge they need to survive within the industy. To succeed in the space it is paramount that you seek out as much knowledge and certifications within the industry as possible

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