Lilia Mihelea’s Post

Interesting article about the explosion of family offices over the last 4 years. This is a sign that people and families are prospering on a more grand scale than ever. It is an indication capitalism works and the positive impact wealthy families have on our community can be phenomenal. Wealth is an incredible tool and should be celebrated. Developing more housing, impacting third world countries positively, creating infrastructure this country and the world desperately need, investing in education and healthcare are just a some of the incredible impacts family offices have on the world we all share. Bringing incredible opportunities to family offices is a skillset I work day and day out to accomplish. We have some very interesting development opportunities on the horizon that create quality housing, jobs and value for investors not just in profits and wealth preservation, but also having a positive impact on our local communities. Stay tuned! #impactinvesting #wealth #opportunity #future #realestate #NJ

Family Offices are increasingly hiring specialists such as serial entrepreneurs and CEOs with extensive industry knowledge and networks to advise and enhance their direct investing programs. With access to superior deal flow and enhanced due diligence capabilities, these Family Offices are focused on building robust, long-term direct investing programs—and they are willing to invest substantially to secure this advantage. At JABOY Productions Chicago ELITE Family Office conference, I highlighted in my keynote presentation the critical strategies that Family Offices must adopt to effectively compete with major private equity firms. A significant portion of my talk was dedicated to compensation. Top-tier professionals are unlikely to accept a compensation package that lacks substantial incentives for successful investments. To attract such talent in today's competitive market, Family Offices need to provide chief investment officers and senior investment team members with compensation structures similar to those found in venture capital and private equity firms. These compensation packages often feature: • A portion of the carried interest is linked to investment returns. • Grants of profit interests in the portfolio companies. • Favorable co-invest rights, which may include loans from the Family Office to enhance capital contributions. • Phantom equity arrangements to restrict non-family members direct equity ownership in the family's investments. • Equity vesting over time to ensure retention and alignment with the family's long-term objectives. • Put rights or a predetermined sell-down schedule to provide liquidity for the advisor, even if the family intends to hold an investment for many years. In the near future, we anticipate a shift in career preferences among top talent from prestigious universities worldwide. Traditionally drawn to sectors like real estate, medicine, and finance, these bright minds are likely to increasingly consider Family Offices as a viable and attractive career path. As awareness of the unique opportunities within Family Offices grows, these entities will likely come into the radar of graduates who might not have considered them previously. Going forward, Family Offices must strategically align their compensation and recruitment practices to not only attract but also retain the best talents in the industry. By adopting compensation structures that provide significant upside potential and by leveraging the expertise of seasoned industry veterans, Family Offices can position themselves as formidable players in the competitive landscape of private equity and venture capital investing. This strategic pivot is essential for Family Offices aiming to capitalize on the shifting dynamics of global talent acquisition. #familyoffice #jaboyproductions #jaboygreatness Neil Greene

I have been exploring opportunities to lead a family office. A family office is not solely reserved for billionaire families. Recent data from Preqin highlights the increasing popularity of family offices among individuals with $100 million or more in assets. The report revealed that in 2023, there were over 4,500 family offices established globally, with North America emerging as the prominent region, boasting 1,682 family offices. Notably, more than half of all family office assets worldwide are situated in North America. This growth trend has sparked a competitive pursuit among private equity firms, hedge funds, and venture capital firms to secure investments from family offices. For high net worth individuals, exploring the benefits of a family office could prove to be a valuable consideration. https://lnkd.in/g-krzmpf

“Going forward, Family Offices must strategically align their compensation and recruitment practices to not only attract but also retain the best talents in the industry. By adopting compensation structures that provide significant upside potential and by leveraging the expertise of seasoned industry veterans, Family Offices can position themselves as formidable players in the competitive landscape of private equity and venture capital investing. This strategic pivot is essential for Family Offices aiming to capitalize on the shifting dynamics of global talent acquisition.”

😤 Staff retention in FOs is clearly a problem 🙄 . Good shout out Ronald Diamond 👏 . I'm only half way through the Campden Wealth and AlTi Tiedemann Global FO report but... 'Two thirds of family offices view staff retention as problematic. Even though larger family offices offer much higher levels of compensation and more robust incentive plans than their smaller peers, retention problems extend across the sector irrespective of family size. Retaining good staff is one of the biggest challenges in the pursuit of operational excellence and the effort to succeed here should not be underestimated'. Key extracts to come later next week 👍. #familyoffice #familyoffices #staffretention #compensation #employment #compensation https://lnkd.in/edEBuXqF

Pepper Trends Family offices are innovating their portfolios Gone are the days of solely relying on traditional asset classes. Today, successful families are embracing alternative investments for higher returns, lower volatility, and long-term wealth preservation. Here's what's driving the change: 1) Shift towards alternatives: Private equity, real estate, and venture capital are gaining traction, offering a path beyond public markets. 2) Long-term perspective: Family offices' ability to invest for generations allows them to ride out short-term market fluctuations. 3) Entrepreneurial spirit: Many families leverage their expertise for direct co-investments in promising companies. 4) Goal-based approach: Tailored investment strategies consider short, medium, and long-term family objectives. However, challenges remain - Balancing risk, managing illiquidity, and navigating emerging trends require specialized tools and expertise. Pepper's data management platform empowers family offices to: 1) Gain deep insights into complex portfolios with diverse asset classes. 2) Make informed decisions based on real-time data and comprehensive reporting. 3) Focus on family goals with efficient portfolio management tools. Ready to build a future-proof portfolio? Let's talk about how Pepper can help your family office thrive. Pulak Sinha Ann Eberle Thomas #familyoffice #wealthmanagement #alternativeinvestments #portfoliomanagement #pepperdatawarehouse https://lnkd.in/gqnETgXb

At EquityZen, we saw family office investments in private company secondaries grow by 121% in 2023 versus the average over the 3 years prior. Family offices (FOs) are investment firms managing capital on behalf of a single ultra-high-net-worth individual or multiple families together. Many FOs are allocating over half of their investment portfolios to alternative investments. Driving the trend is family offices’ stated objectives to balance capital preservation with achieving outsized returns over a longer time horizon. This combination aligns with the investment timelines for private companies (and other illiquid alternatives). These factors are driving the shift: 1. Alignment with long-term goals The investment horizons of private investments generally match the long-term strategies preferred by family offices. 2. Portfolio diversification By expanding into different asset classes, family offices aim to reduce risk and enhance potential gains. 3. Stability through alternatives Alternative investments provide an opportunity to dampen portfolio volatility. 4. Seeking asymmetrical upside These investors are not just spreading risks but are also searching for investments that could yield significantly higher returns relative to the risk undertaken. We created EquityZen — because we believe the tools and lessons for wealth creation shouldn’t be only left to those who are already wealthy. Family offices offer a valuable lesson on creation and preservation of wealth.

CNBC states that Family offices have tripled since 2019 (The Rise of Families)   Because of this, there is a surge of interest from private equity firms, hedge funds, and venture capital firms eager to attract their investments.   A new report from Preqin reveals that family offices—private investing entities of wealthy families—now exceed 4,500 globally. North America leads with 1,682 family offices, holding over half of the world’s family office assets. The total assets under management by family offices have soared to $6 trillion or more.   The rise in ultra-high-net-worth individuals is fueling this boom. Wealth-X reports there are over 2,600 billionaires and more than 90,000 people with assets of $100 million or more, the typical threshold for establishing a family office.   Private equity firms like Blackstone, KKR, and Carlyle are expanding their teams and tailoring products to attract these family offices. Blackstone's Private Capital Group, which focuses on family offices and sophisticated investors, has doubled its team to 25 people and sees substantial growth opportunities.   Family offices, initially focused on wealth preservation, are now seeking higher long-term returns through private equity, venture capital, hedge funds, infrastructure, and real estate. Despite recent disappointments in returns from venture capital and private equity, family offices remain optimistic about future performance. Working alongside family offices, I am exposed to a myriad of families and who all have their unique styles and allocation structures. If you are in this space, I would love to connect and discuss how we can collaborate during this exciting age of wealth transfer and explore opportunities. Family Office Club World Family Office Institute Global Family Office Community Wealth Management Institute (WMI) SFO Alliance Family Office Magazine Family Office List Family Office Networks Dot Investing Family Office Exchange Family Wealth Alliance, Inc. The Family Office Company BSC (c) Family Office

💯 'Today's family offices are far more than just wealth management entities.' 💯 It's a pleasure to read more and more articles that recognise that wealthy people need more than wealth management. They are individuals. The word 'wealthy' is an add on. They are people. And have needs like everyone else. This article is very informative and covers in detail: ◉ Key characteristics of modern family offices ◉ Recent trends shaping family offices ◉ The future outlook ◉ Challenges and opportunities But the part that stood out to me is the author identifies how fund managers looking to raise capital from family offices need understand these changes, and what points they need to consider: 1️⃣ They need to provide tailored approaches. Solutions need to be customised. The 'one-size-fits-all' approach won't work. 2️⃣ They need to offer co-investment opportunities. There is a growing interest in collaborative investing. 3️⃣ They need to be transparent and be willing to provide detailed, regular reports to their clients. 4️⃣ How aligned are their interests with their clients' interests? Family offices are interested in building true partnerships with their fund managers, and no longer be one-sided. 5️⃣ Are they able to demonstrate how ESG is integrated into their investment processes? 6️⃣ Do they have robust tech capabilities to serve their tech-savvy clients' sophisticated needs (Example - were you/they affected by the CrowdStrike crisis and how did you manage it?) Family offices don't need to function in siloes. They have similar needs to everyone else (albeit I do acknowledge not all of us need to buy a helicopter or a yacht or are able to invest £10m). It is the next-generation who are driving forward this demand for personalised services. So if you work in the financial industry, and want these people to be your clients, make sure you listen and adjust... you won't have a job otherwise. #wealthadvisors #wealthplanners #nextgeneration #legacies #invest #familyoffices #SFO #MFO Thanks to the author, Josipa Majic Predin 🙏 for this article in Forbes https://lnkd.in/erYjgc9e

Unlocking Strategic Success for Family Offices in Southeast Asia At Protemus Capital, we’ve had the privilege of working closely with numerous family offices across Southeast Asia. One of the most strategic insights we've gleaned is the importance of focusing on areas where the family has a major competitive edge. This means zeroing in on specific countries, regions, and business models where their expertise and strengths can shine, rather than being tempted by opportunities outside their core competencies. Too often, family offices operate in an opportunity-driven manner, chasing after every promising deal that comes their way. While this can sometimes yield short-term gains, it often detracts from long-term sustainability and success. By honing in on what they do best and leveraging their unique strengths, family offices can build a more resilient and prosperous future. Here’s our advice to family offices in Southeast Asia: 1. Identify Core Competencies: Understand and map out the family’s competitive advantages. This could be in specific industries, regions, or even particular types of investments. 2. Focus on Strengths: Allocate resources and efforts towards areas where the family has deep expertise and a proven track record. 3. Resist Diversification Temptation: Avoid spreading too thin by venturing into unfamiliar territories or industries. Staying focused ensures more efficient use of resources and better risk management. 4. Build a Unique Strategy: Each family office should craft a tailored strategy that reflects its unique strengths and goals. This personal approach is key to standing out and achieving sustained success. The key to thriving in the dynamic landscape of Southeast Asia is not just about seizing every opportunity but about strategically positioning oneself where the odds of success are the highest. By focusing on core competencies, family offices can unlock their full potential and drive long-term growth. At Protemus Capital, we are here to support you in effectively executing your investment strategies. Let’s connect and explore how we can help achieve optimal outcomes for your family office. Protemus Capital #FamilyOffice #StrategicInvestment #SoutheastAsia #InvestmentStrategy #CoreCompetencies