Family offices and investment for wealthy families.

Family offices and investment for wealthy families.

A family office is a private organisation that offers advisory and wealth management services to one or more wealthy families (multi-family offices). Its main aim is to preserve and pass on family wealth over the long term.

The two common models for family offices are the Mono Family Office, dedicated to a single family, and the Multi Family Office, which serves several families.

In this way, a Family Officer organises and provides a range of advice and services over the long term to ensure the harmony and economic interests of the families. What’s more, this must always be done with a trans-generational vision.

Today, many entrepreneurs turn to these houses to present their projects, and so convince them to invest on behalf of the families they represent.

Here’s some information on the relationships that GOWeeZ is particularly fond of with these potential investors.

The multi family office

In complete independence, this company will have the delicate task of providing advice tailored to the family assets entrusted to it.

This means that several client families will not receive the same advice from a family officer.

The team generally comprises a maximum of ten professionals (lawyers, tax specialists, asset managers, property experts, etc.).

These services are similar to those provided by a single family office (asset management, estate planning, luxury concierge services, etc.) but are shared between several client families.

A multi-family office is a structure that offers wealth management services to several wealthy families. This enables them to benefit from tailor-made wealth management services while pooling costs.

To qualify for management by a family office, a family’s financial assets must exceed around €10 million. These assets may be established wealth or assets from the sale of a company.

The family officer is remunerated by fees paid by his family clients. They guarantee their independence.

GOWeeZ, article intérêt de travailler avec des family offices

 

What services does the multi-family office offer?

A family office plays a crucial role in advising and supporting wealthy families in a number of key areas.

Firstly, the family office helps to establish solid family governance, defining clear rules and structures for decision-making.

This includes setting up family councils, establishing family charters and facilitating regular family meetings.

These measures ensure transparent and harmonious communication, preventing conflict and ensuring that all family members are aligned on long-term objectives.

A family office offers a full range of services to meet the complex needs of wealthy families. Whether in terms of wealth management or investment.

Consulting and investment

Firstly, the family office provides expert, independent advice to help families make informed decisions about their investments.

Taking into account the family’s financial objectives, risk tolerances and long-term aspirations, it develops investment strategies tailored to the family.

Strategic asset allocation

One of the first steps in wealth management is strategic asset allocation. The family office assesses the different types of assets available. We are talking here about shares, bonds, hedge funds and other investment vehicles. The aim is to create a diversified and balanced portfolio. An approach that aims to maximise returns while minimising risk.

Asset Management 

The family office actively supervises the family’s portfolio, in this case asset management.

This includes selecting fund managers, monitoring investment performance and adjusting strategies in line with market conditions and the family’s defined objectives.

Private Equity 

Private equity represents an attractive investment opportunity for many families. We’ll explain why later in this article.

Family officers identify and evaluate private equity investment opportunities.

Whether in innovative start-ups or established businesses. They guide the family through the entire investment process, from initial due diligence to ongoing management of the holdings.

Real Estate

Property is often a key component of family portfolios. The family office advises on the acquisition, management and disposal of property, whether for private residences, commercial properties or investments in property funds. It ensures that property investments are aligned with the family’s overall objectives.

Investment monitoring

Rigorous monitoring of investments is essential to ensure their ongoing performance. The family office regularly monitors the portfolios of the families it manages. It analyses performance and makes any necessary adjustments in line with the family’s interests. This constant monitoring makes it possible to react quickly to market changes and protect the family’s interests.

Customised global asset consolidation

A family office offers tailor-made global wealth consolidation. This involves a unified overview of all the family’s assets, enabling integrated and consistent management. Through detailed reporting and in-depth analysis, the family office ensures that all the family’s assets are managed in a coordinated and efficient manner.

The duty to train and support heirs.

This is an important issue for trans-generational assets.

It is essential to prepare the younger generations for their future responsibilities.

The family office can offer educational programmes on wealth management, investments or governance principles.

As well as financial education, it also offers personalised support, helping heirs to develop their skills and find their place within the family structure.

This education can be a positive stimulus to philanthropy and the creation of a foundation.

The family office plays a key role in managing the family’s philanthropic activities. It helps to create and administer family foundations, ensuring that charitable initiatives are aligned with the family’s values and objectives.

Optimisation and Concierge services are also offered by the multi-family office:

Family offices play a central role in the complex, multi-dimensional management of wealthy families’ assets. Some family offices differentiate themselves by offering a wide range of specialised services.

Wealth, tax and property engineering

Family offices excel in wealth engineering. They develop sophisticated strategies to structure and protect family assets.

This includes estate planning, the creation of trusts and foundations and the development of optimised holding structures. The aim is to meet the specific objectives of each family.

In terms of tax engineering, the family office can also propose solutions to minimise tax charges. Naturally, it takes account of current regulations.

This includes international tax planning and setting up tax-efficient structures.

Real estate engineering encompasses the efficient management of real estate assets. This includes the acquisition, management and sale of properties or commercial leases, while optimising the associated tax aspects.

Connection and supervision of external experts

The family office acts as a central coordinator. It supervises and collaborates with a network of outside experts. These include lawyers, tax specialists, asset managers and financial advisers.

This supervision guarantees a coherent, integrated approach to family wealth management, ensuring that all the pieces of the jigsaw work together harmoniously.

Family protection

Protecting the family is a major priority. The family office implements strategies to protect family members against financial, legal and personal risks.

This includes appropriate insurance, security measures and crisis management plans to deal with possible emergencies.

Optimising remuneration

A family office offers income optimisation services. It helps family members structure their income to maximise tax and financial benefits.

This can include deferred compensation strategies and the use of tax-efficient investment vehicles. Income distribution planning is also an area of expertise.

Below is a non-exhaustive but nonetheless comprehensive list of what a family office can do.

 

Family office and entrepreneurship

The link is simple, because generally these are serial entrepreneurs who have sold their company (New Money). They continue to embark on new entrepreneurial adventures.

Indeed, the latest OpinionWay barometer for the Association of Family Offices (AFFO) reveals that private equity accounts for 23% of the allocation of family fortunes under management.

However, the main concerns of these families remain wealth transfer, family protection, governance and philanthropy.

Private equity remains the most popular asset class among investments proposed by family offices.

In fact, according to this study, 77% of family offices show a strong interest in start-ups. They remain confident in this type of investment for their clients.

Nevertheless, the investment policy of family offices is influenced by global geopolitical tensions. It also takes account of national economic trends.

GOWEEZ expertise

At GOWeeZ, we work with investors such as family offices who are interested in innovative growth projects.

If you would like to present your project :

apply on  MY PITCH IS GOOD 

or on GOWEEZ on the page Venture

Other articles on investment and entrepreneurship that might interest you:

What factors need to be taken into account when choosing the right investment fund?

Article written by Fabrice Clément

Advisor dans l'art du Pitch - Révéler votre art oratoire avec GOWeeZ. et MY PITCH IS GOOD !

A family office is a private organisation that offers advisory and wealth management services to one or more wealthy families. The two common models for family offices are the Mono Family Office, dedicated to a single family, and the Multi Family Office, which serves several families. here there are their expertise ans role.

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A family office is a private organisation that offers advisory and wealth management services to one or more wealthy families. GOWeeZ maintains relationships with some of these family offices, particularly