Family Offices

Managing dynastic wealth as a single family office (SFO) comes with great responsibility. How does one decide on the investment strategy? How does one decide how the family’s business or investments are to be structured? How does one manage the competing interests of different generations? How does one handle family members who may be at odds on investment strategy? Or how does one deal with those families where litigation looks likely, or who are already litigating?

Then there is the internal management of the SFO: how does one recruit talent? If an SFO is instructed to manage institutional sized AUM, are families willing to remunerate their SFO executives on market terms? How does one deal with remuneration and carry? Where does one situate the SFO (if indeed there is to be a physical base at all)? How can one ensure the family office does not “arrange deals” or “advise on investments”, or carry out other activity which would leave them at the mercy of financial regulators?

Family of…

• Tax considerations: Tax efficiency is often a primary concern. Jurisdictions with advantageous tax regimes for income, capital gains, and inheritance, can offer significant benefits. Additionally, double taxation treaties should be considered to avoid paying tax in multiple jurisdictions
• Political and economic stability: Stability in the jurisdiction ensures that the family’s assets and operations are less likely to be affected by political or economic upheavals. Politically stable jurisdictions tend to provide a secure environment for long-term planning and investments.
• Access to talent and services: The availability of specialised professional services, including legal, financial, and investment expertise, is essential. A jurisdiction with a robust infrastructure for financial services and a skilled workforce is preferable.
• Privacy laws: Privacy is a significant concern for many high-net-worth families. Some jurisdictions offer stronger privacy protections, which can be a determinin…