At Family Office Exchange (FOX), one of the questions we hear most frequently is:“How many single family offices are there?”Unfortunately, there is not a clear answer. There is an older, often-quoted statistic of between 3,000 and 5,000 single family offices in the United States – but the origin of those figures is unknown. More recently, Family Wealth Report estimated that there were about 6,000;1 Campden Wealth puts the figure at 7,300.2With such widely varying numbers, and no single source to verify the estimates, the question becomes how to accurately “guesstimate” this number. One way to ...

What do our future family leaders need to learn? When should family education begin and how formalized should it be? How will we adequately prepare the rising generation for the lives they will lead and the roles they will play? Sound familiar? These are the common questions I hear from many of our member families lately. The questions are both simple and complex. The answers are the same. What do our future family leaders need to learn? Has your family gone through an exercise, perhaps at a family meeting, and had this conversation? Have you defined, together, what is mo...

Over the past 40 years, creating and maintaining financial security has become more of a personal endeavor. Yet, despite record aggregate levels of US wealth, large portions of the population appear quite vulnerable. Avoiding late-cycle overconfidence as it relates to both spending and investment decisions is key.When Congress passed Section 401(k) of the Revenue Act of 1978 they began a revolutionary risk-transfer as it relates to retirement savings. With employers increasingly embracing the cash flow predictability of defined contribution plans, the percentage of private-sector employee...

Recently we sat down with FOX member, Steve DelGiudice, a technical specialist with AIG Private Client Group, to get an understanding of what ultra-high net worth families should keep in mind when constructing a new home and efforts they can take to protect their loved ones and most valuable possessions. FOX: What is a resilient custom home?Steve DelGiudice: We use this term for homes with state-of-the-art techniques to keep them standing when floods, winds, or fires strike. Resiliency generally refers to a building’s ability to withstand natural disasters such as hurricanes, earthquakes,...

Families that have accumulated significant assets want to know how to best prepare the “rising generation” to help them maximize the benefits available to them, while also minimizing the unique challenges that occur when navigating the world of wealth.Younger family members may have different approaches when it comes to family wealth. Understanding where these approaches come from is essential when creating an effective family education program. Consider these family members to be on a continuum with engaged learning in the middle. People who fall in the middle are interested and eager to lear...

A family vacation home is meant for families to spend time together, create new memories, and watch their children, grandchildren, and possibly great grandchildren grow. The home may also be a wise investment. But for most families, it’s first and foremost a place for enjoyment. Yet as many families find out, the very space designed to serve as a family sanctuary can quickly become stressful as disagreements over the specifics of how it will be enjoyed arise. When first generation owners begin to create a succession plan for the home, these disagreements often intensify. Vacation homes an...

What is the difference between a life insurance review and a life insurance audit? In this episode, Steve Herlihy at Wellspring Associates sheds some light on why it might be time for your family to consider a life insurance audit, and outlines some life insurance basics that younger-generation family members should know.Subscribe to FOXCast on Apple Podcasts here. Listen Now: Is it Time for a Life Insurance Audit? Your browser does not support the audio element. Below is a transcript from the conversation:KC: So, life insurance. I know a recent conversation that FOX had with Wellsp...

Earlier this year, we completed our 2019 FOX Survey on Values-Aligned Investing alongside our annual Global Investment Survey for the first time. We felt strongly that it was time to gather information on this growing trend - and share the findings with our members and their advisors – because there has been a fundamental shift in how families of wealth view capital deployment. Today’s families of wealth are increasingly focused on aligning their activities and dollars with their values. What was once a conversation held at the philanthropic table is now being discussed across the capital spec...

Below is an excerpt of an article that originally appeared on BDO.com Cyber-attacks and their success rate in network breaches are increasing in frequency and sophistication. At the root of many successful cyber-attacks are the vulnerabilities that exist within network infrastructure, software applications and the very humans that use those networks and applications. The human element of cybersecurity deals with normal human interactions through email and social media (e.g., vulnerabilities such as email phishing, LinkedIn and Facebook hacking, etc.) and general cybersecurity awareness an...

Private equity is playing an increasingly large role in the global economy and impacting portfolio construction. Muted mark-to-market volatility and less short-term scrutiny in private equity appeals to investors and companies alike. One method by which a company ultimately exits private ownership is by going public through an Initial Public Offering (IPO).Private equity investing generally involves committing capital to an investment manager, who then invests in privately owned companies in various stages of development or evolution. These companies are seeking cash for a variety of purposes,...

Just as family offices differ in most ways from other types of businesses, Human Resources (HR) in a family office presents its own unique challenges. That’s why family office executives find it beneficial to share their experiences with one another—because there are no one-size-fits-all methods and many of these challenges can only be understood by a peer. When the FOX Executive Council ‘14 met in Salt Lake City, UT earlier this year, a discussion on human resources—specific to family offices—was a highlight. Cassie Atteberry, HR Director at Chinquapin Trust Co., and Bonnie Gauger,...

In this episode, we sit down with Dan Tarlas, Senior Managing Director at Asset Consuting Group (ACG) to talk about what it takes to partner with families as investment consultants; managing risk appetites and creating an approach that is truly customized and objective.Subscribe to FOXCast on Apple Podcasts here. Listen Now: Investment Programs for Families with Dan Tarlas of Asset Consulting Group (ACG) Your browser does not support the audio element. Below is a transcript from the conversation:KC: Asset Consulting Group (ACG) is known for investment programs that are customized and...

For the last two years our family office has been on a deliberate journey to change our culture. It's been a lot of work and learning as we go, but we now have year-over-year data showing that an overwhelming majority of our employees say that culture has dramatically improved. We know that there is A LOT of talk about culture and how important it is to the success of any family office. But what can you actually DO about it? I think it comes down to 4 deliberate steps:Decide if you need a culture intervention by assessing current stateDefine your desired future cultureBuild and implement ...

Standard homeowners and umbrella insurance policies do not include coverage for personal injuries such as intentional infliction of emotional distress, slander, and defamation. In this age of rapid and pervasive social movements such as #MeToo, prolific scandals all over the news, and the ability of social media to exacerbate matters; how do high-profile families and ultra-high net worth individuals protect themselves from potential liability and damages?We recently sat down with FOX Thought Leaders Council member, Brian Applebee of AIG Private Client Group, a division of the member companies ...

In this episode, we check in with Ruth Easterling, Managing Director of Member Services at FOX on the importance of developing a strong trustee/beneficiary relationship.Subscribe to FOXCast on Apple Podcasts here. Listen Now: Mindfulness around the Trustee/Beneficiary Relationship Your browser does not support the audio element. Below is a transcript from the conversation:KC: You work with many different types of families, just to give the listener some background—some have recently had a liquidity event, others are multi-generational, business-owning families growing in complexity. ...

p { padding-bottom:3px; } li { padding-bottom:0px; } Tackling the 'One, Two, Threes'Let’s never forget integrated services are the crucial deliverables by a family office and these services provide the best evidence to judge the performance of the office. There are three key inputs related to services, (1) strategy and goals, (2) scope, and (3) execution, that again and again are cited as critical for success by family offices when serving clients. Call them the “one, two, threes” of family office services.The three elements should be considered key building blocks for any servic...

The Need for a Formal Governance ProcessAs the family grows, decision-making moves from the dining table to the board room and family members are often reluctant to formalize their decision-making process. Each branch of the family wants to broaden their options rather than to narrow their options. Written ground rules for decision making makes some family members feel confined by the formality. Only gradually do stakeholders come to trust the ground rules for group decision-making, as these rules prove themselves valuable over time when uncertainty or crisis erupts. Without guiding princi...

In our first FOXCast episode, we check in with David Toth, Managing Director at FOX about his recently-published study, Transformation of the Ultra Wealth Business. Subscribe to FOXCast on Apple Podcasts here. Listen Now: Adapting to Change in the Great Transfer of Wealth Your browser does not support the audio element.KC: How is the Ultra Wealth Industry Transforming? DAVID TOTH: It’s pretty remarkable. I guess there’s just a point in time where we found it was time to declare that it is transforming. And perhaps it has been all along. The point in time, for us, is...

Below is an excerpt from the article, Understanding the Voice of the Rising Gen, from the 2019 FOX ForesightTM publication.As wealth owners shift gears to succession planning, there is an entirely new set of issues to tackle. Preparing the Rising Generation for leadership is never easy. Wh...

Below is an excerpt from my article, Understanding the Voice of the Rising Gen, from the 2019 FOX ForesightTM publication.As wealth owners shift gears to succession planning, there is an entirely new set of issues to tackle. Preparing the Rising Generation for leadership is never easy. While ea...

What happens when you bring a group of family learning and client experience officers together to trade experiences and share lessons learned? Magic – in the form of answers to big questions, tried-and-true resources to take back to the office, and support from peers who understand what you do every day.There is something special about the FOX Council experience that allows family office executives to step out of the day-to-day to invest in their personal and professional development by learning from experts and sharing their challenges and successes in a safe space with their true peers. Whil...

Evolving from Business Owner to Financial FamilyFamilies held together by a family-controlled business share a feeling of pride about the business. Their identity as a family is tightly woven into the fabric of the business that houses the history of their hard work and success. Many entrepreneurs who have enjoyed the challenge of building a family business face the decision to sell or take significant liquidity out of the business with mixed feelings—and a certain amount of trepidation. While liquidity has its benefits, it is important to recognize the reality of this life-changing ...

FOX Councils provide an exclusive, small-group setting to share knowledge, discuss experiences, and gain insights. Our FOX Financial Executive Council, consisting of CFOs, controllers, and tax managers who work in family offices, met in January. We asked one of the Council Chairs, Jane Flanagan, to share what’s top of mind for these members.Q: One of the great benefits of the council is that members have the opportunity to share their challenges and what’s top of mind for them. Can you share some of the top concerns?The councils are very much a safe, confidential space, but I can sha...

As a strategic wealth coach (our term for my role at Ascent) I am often asked, “What does that mean?” I pause, raise my eyebrows, smile, and reply, “I’m a money coach, I help people deal with the emotional side of money.” This comment alone does not explain what a “wealth coach” is or what one does, so I typically carry on by providing a story or two that might help clarify what a wealth coach looks like in action. My favorite introductory story goes like this: One of my clients, a grandmother, wanted to create an educational trust and fund it ...

Disruption in our industry is inevitable, whether it is the growing transitions of businesses and wealth, or technology innovations such as robotics that will transform how we do things. .blog-banner{ display:none; }