The most important character trait expected of a family office leader is discretion. And it is only mentioned in passing in this article, which focuses on nuts-and-bolts issues.
You also have to have the mindset of a principal while simultaneously psychologically embracing of the humility to subservient yourself to the needs of the family, including, if need be, running a concierge service.
And from Institutional Investor, February 16;
Citi Private Bank has a detailed list of attributes that it says families want to see.
An estimated 10,000 new family offices were established globally over the past 20 years and while their size, structure, and complexity vary, many have at least one thing in common: they need a chief executive. And not just anyone can adequately fill those shoes.
Family offices historically did almost everything in-house “out of necessity or fear of ceding control over service delivery, potential conflicts of interest, or the release of personal and financial information,” according to a recent report by the family office group at Citi Private Bank. That approach came with high costs that required scale. It was typically for families with at least $1 billion dollars of investable assets.
Today, the number and quality of third-party service providers dedicated to family offices — for wealth and investment management, legal, tax, insurance, bill payment, and security, among other things — has expanded and the outsourcing means families worth $200 million might be able to justify having their own office. But even if almost all of the functions are outsourced, family offices still need at least one person in charge of them and the position is becoming more demanding.
Traditionally, family members, former legal and tax consultants, and leaders of family companies became the chief executive. But as family offices increasingly professionalize, they also are attracting interest from other executives. More investment professionals from asset managers or institutions are being drawn to the pinnacle of the private investor universe.
“The rise of the family office industry has also led to many more sophisticated professionals wanting to work for these institutions, particularly at the senior leadership level. It is not uncommon to see former hedge fund managers, private equity professionals, investment bankers, and heads of wealth management firms or businesses joining family offices,” the Citi report said.
What makes a good family office CEO — and the candidates in demand by families — has evolved. With help from recruiters, Citi has created a detailed list of the must-have qualities.
Fifteen or more years of relevant experience is necessary and credentials such as an MBA, CPA, or CFA certifications are preferred for family office CEOs, who are handsomely compensated. But a lot of people check those boxes....
....MUCH MORE
Some previous posts:
- Family Office/Outside Managers Not Quite Cutting It? Maybe What You Need Is A Family Bank
- "Family offices are snapping up talent from private-equity firms and elite wealth managers"
- "Why BlackRock Is Building Strategic Partnerships With Family Offices"
- "Family Offices as the Apex Of the New Butler Class"
- Sidestepping Private Equity With a Family Office
- "A tour through the subterranean world of Silicon Valley’s most elite and clandestine family offices."
Our package: complete Family Office services including concierge and butler, art appraisal, succession and estate counseling and life-coaching.
Or, for the truly discriminating, ask about our Luxe programme with unbiased private equity ROI analysis.(includes party planning option)
Not quite there yet?:
Proctor & Gamble: "Make Your Home Smell Like You’re Rich" (PG)
News Your Dynasty Can Use: How The Habsburgs Stayed So Powerful For So Long
Tips on playing the long game....
Should you be contemplating establishing a dynasty, you have come to the right place.
You are going to want a seat of power and Construction Physics has a primer on "How To Design A House To Last 1000 Years."
Finally, how to pay for it all without risking everything on that dissolute great-grandchild that is sure to pop up:
Anti-Piketty: Merrill Lynch's Tips on Creating a Financial Dynasty
The progenitor of the House of Habsburg may have been Guntram the Rich, a count in the Breisgau who lived in the 10th century....
Oh Crap, I Almost Forgot Karl, The Last of the HabsburgsAnd finally:
Why Real Estate Ownership Is Required For Intergenerational Wealth
We've looked at the importance of housing as a cornerstone of intergenerational wealth a few times, and not just for piles like this:
That's the courtyard of Arundel Castle, it's been in the fam (Fitzalans; Howards; Fitzalan-Howards) since the mid-1200's (with a few reversions to the Crown). More after the jump....
