Family Offices (FOs) are set up with the primary objective of preserving family fortunes and non-financial purposes like philanthropy, tax advising, education, etc. Herein: general administration, reporting, investment analysis and managing the various activities or interests of the family members become the 'core operations' of a family office.
What does the Family Office basics entail?
- Clear Objective - in terms of wealth creation, preservation, and monitoring
- Investment - a minimum baseline; specific areas of interest; value propositions - which may vary in terms of the entry point and the stage of the company / project where they see the most upside
- Management Structure - depending on the family office type (single family office or multi-family office)
- Coping with Challenges - especially in terms of capital preservation; they are always looking to apply the best protection for the downside risk with solid moats
- Greater focus - towards philanthropy, social impact and giving back to the community
