Chad Fox’s Post

Embedded family offices are the most prevalent type of family office structure on a global basis. They are often the least understood and are ripe for problems … if not structured and managed properly. Thank you to Margaret Steen of The Family Office Professional (or TheFOPro) for highlighting the issues and some solutions. My firm, Xylogenesis | Family Office Advisory, works with families, their operating company (or companies), and their other trusted advisors to address these concerns. #embeddfamilyoffice #familyoffices #singlefamilyoffice #virtualfamilyoffice #hybridfamilyoffice #governance #structure #comingle

Is The Rise Of The Single Family Office A Good Thing For Our Business? A great perspective here from the team at Multi Family Office Stonehage Fleming You could think that it is a competitive space but the fact is that SFO’s need good MFOs. Whether it’s for outsourcing certain tasks or specialist advice, there will also be services that the SFO does not provide for it’s principals. This is a huge undertapped market so it’s good to see this perspective. F Partners Read The Full Article Here: https://lnkd.in/dFwt9_Ji #singlefamilyoffice #familyoffice #familyoffices #privateinvestors #privatemarkets

Most families start their family office journey by using the resources and staff of the family business to manage their personal affairs, including tax, wealth and investment planning, management and reporting matters, bill pay, and personal and real property management. You may want to consider the unintended consequences, risks and performance issues that result from a poorly designed or organically grown embedded family office. Appreciate Margaret Steen of The Family Office Professional (or TheFOPro) for amplifying the concerns to help raise the awareness to families, their operating businesses, and their trusted advisors. #embeddedfamilyoffice #familyoffice #familybusiness #familyenterprise #comingle #structure #governance #organic #managedservices #operatingcompany https://lnkd.in/gUbv5E2Y

One of the biggest challenges when managing family offices is building the necessary trust with your clients. Many people think managing family offices is all about placing assets. But it’s much more than that. To manage a family office well, you need the family to trust you without hesitation. Here are 3 key ways to build this trust with the Family office: 1. Execute with your lips sealed. The family cannot have any doubts that what they share with you may end up being public. 2. Learn when to have specific conversations, how and when to be diplomatic and ask the right questions. 3. Conduct yourself in a way that will allow you to get closer to the people for whom you are managing the business. Trust ensures family members share crucial details. Those crucial details will allow the office to maintain liquidity for personal expenses and fulfill its purpose. #familyoffice #advisor

Why does the family office “industry” fail to serve families effectively? A thoughtful two-part exploration of the state of the family office industry from expert Edward Marshall of Dentons in Family Wealth Report. Ed proposes a simple, functional criteria for family office services: Does this activity improve the quality of life for the family? Required reading. Part Two is here: https://lnkd.in/e8jQye_Q Tom Burroughes Stephen Harris Theodora Viney Rachel Fokes Philip Harris Andrew Deane #familyoffices #wealthmanagement #strategy https://lnkd.in/eCzmQahZ

A Family Charter, sometimes called a Family Compass, is a bespoke, living document that helps steer family office governance and decision-making. It provides a framework to guide high-wealth families through uncertainty while remaining true to their objectives and values. In this article, family office specialist Eleanor Moffat unlocks the secret to crafting a charter that addresses your family’s unique circumstances and supports successful wealth management across multiple generations. #familycharter #governance #wealth #wealthmanagement #familyoffice

My Dentons partner Edward Marshall has taught me many things about our tradecraft. However, one of the most impactful is the concept that family offices are a mindset and methodology - not entities or structures defined by monetary thresholds, lists of responsibilities or tasks, or predetermined objectives. The primary objective of all family offices, regardless of resources, ambitions, family net worth, or operational and organisational style, is to improve the quality of life for families. Framed in this way, all of us technically have a family office performing tasks and managing risks. However, the financial resources available for those tasks are the primary distinction between an ordinary household and what is now commonly described as a family office. I don't think many advisors and institutions purporting to serve family offices understand this mindset and methodology conceptual framework. They view family offices as consumer market segments, legal entities, wealth management firms, business operators, or quasi-financial institutions to be marketed to, regulated, and pitched to for capital/grants. This misconception is often unhelpful and so I am pleased that Eddie has shared his unique perspectives and expertise with a wider audience in this article. #familyoffice #privatewealth   

Single Family Offices ("FO") are a hot topic in Asia and I hear a lot of questions about the "governance of family offices"; which has had me reflecting on what I see amongst my clients (which is a diverse bunch). 1. The governance of the FO is not the same as governance of the family - which should drive its own governance. The FO can provide admin support. 2. With the FO the question is more likely to start with what is the ownership governance of the FO? 3. There is a difference between management and governance. My guess is that a lot of people are really asking the question of how should a well managed FO be organized (not governed). 4. If you think about FO governance that is likely to take you to the corporate model - but I have a couple of clients where effectively there is a controlling owner or effectively a partnership model (at the ownership level) and no functional board - and they work fine for this stage. 5. On the other end of the spectrum I see FOs that are essentially under a holding company and in that case I tend to think of the FO as being like a business unit / management/operational level in the group (and yes this arrangement might not fit neatly with the idea that the FO should only deal with the family's liquidity). 6. If you do think of a corporate model where you have a board with INEDs between the controlling owners and the CEO/management - sadly I have seen the FO CEO fall out with the controlling owner and my reflection is that HR advice to help look at development, comp, etc of the CEO can be an important need (not to say that it has to come through the board). 7. Therefore INEDs can help be that buffer between controlling owners and the CEO (or senior managers) and bring the perspective of what is normal. 8. Dennis Jaffe has won me over to understand that the phrase "if you have seen one family office you have seen one family office" - is unhelpful -because there are stages and models and common combinations. That is part of his thinking on Wealth 3.0. 9. Family values are for .... the family! The FO is a service organization supporting the family. Therefore what are the behaviors that are going to help the FO fulfill upon that mission. See my chapter on this in Essential Reads. 10. Some FOs provide support for the family charity; in other cases the foundation is completely separate. How do you decide and when do you decide to make that kind of split? Therefore "governance" might come down to having a periodic strategic/organizational planning process where you look at what you do and how you are organized and ask what what do others do and what is the next step for us? That might involve help from an INED or from an advisory board or just help from your team of advisors. But outside perspective is important. Honored to have two chapters in this new valuable publication from Globe including one on family constitutions https://lnkd.in/gCcWmQ4B

Interesting article about Family Office's key missteps: prioritising individuals over objectives and neglecting to establish a mission statement. At William Buck, we specialise in aligning family office goals with family objectives and crafting bespoke mission statements to guide strategic direction effectively. Get in touch if you want to empower your family with the clarity, focus, and support needed for long-term success and sustainability. https://lnkd.in/g7nPmg_m #FamilyOffice #UHNW #FamilyBusiness Tim Collin Andrew Bradley Scott Girdlestone Craig Barry Kendell Bell

Understanding family offices can be challenging due to their demanding and intricate nature. Failing to access accurate information can lead to wasted time, strained relationships, and financial losses. Family offices struggle to allocate time for staff training and untangle complexities, leading to extended work hours and unclear delineation of risks and responsibilities. It can be challenging for families to grasp these issues, but recognizing them can foster empathy and understanding. Each family office is unique, depending on the industry they operate in, the generation they are dealing with, the family dynamics, and the geographical areas they focus on. Family offices are not created equally, and how they are established influences how certain matters are handled. Those in charge of a family office face various complexities and commonalities. Due to the sensitivities and confidentiality, gaining access to other professionals with shared ideas remains crucial. Each generation within the family and the advisory team will bring different ideas that might not be practical but also contradicting. The responsibilities are not always clearly defined, and there could be blurred lines, which add more stress to a pressurized environment. When the family dynamics change, it might flag specific triggers for the family office advisors, and proactive planning and scenario planning will add a stronger shield. There are tried-and-tested solutions for generational families. Families with family governance frameworks are better prepared to embark on the professionalization journey of their family story. Some advisors are better suited for family offices, and not all will have a long-term role. Gaining insight into the inner workings of a family office is not straightforward, but the discovery of practical tools and strategies can significantly empower the stakeholder network.  #FamilyOffices #WealthManagement #FamilyGovernance #AdvisoryServices #FinancialPlanning #GenerationalWealth #StakeholderEmpowerment The book Switching Billion-Dollar Conversation Lines, Family Offices and Multi-Generational Success is now available in hard copy.  We limited the first sets and have an additional five copies available. For more information and if you wish to receive your copy, reach out to: anne@luciadk.com or Brian DeLucia The soft copy is available at the launch price until this coming Friday. Visit www.luciadk.com I am keeping the first printed copies for Richard Rubin Louis Botha John Roderick Graeme Polson I am getting the books delivered to the two lucky winners, from the Cross-Border Event. Thanks for your patience! For any bulk orders, and discounts, please reach out to me at anne@luciadk.com Sponsorship opportunities are available. The online book launch will happen during 2024 and the formal book launch will happen at a later stage. This is a useful tool for training, conferences, being an interactive guidebook. Short extract