This document is the October 2014 edition of Family Office Monthly, a newsletter from the Family Offices Group association. It provides information on upcoming family office conferences, articles on myths in the family office industry and the costs of staff turnover. It also advertises family office training resources and books. The newsletter is aimed at keeping family offices informed of industry news and events.
Family Office Elite Magazine is dedicated entirely to Family Offices, HNWI and Wealth Management Firms. This publication delivers passionate and creative coverage to the global Family Office communities. We have contributions and editorials from many of the worlds recognized industry experts in wealth management and the Family Office Sector. Family Office Elite Magazine is a must for any serious professional who wants to stay apprised of current trends within this specialist sector.
LinkedIn is one of the most valuable social media tools you have when it comes to personal branding. Here are my top 30 tips, tricks and secrets for maximizing the value of LinkedIn so you can expand your success. You'll learn how to build a stellar profile and use LinkedIn to build and nurture your network and do your job better!
Family Office Elite Magazine is dedicated entirely to Family Offices, HNWI and Wealth Management Firms. This publication delivers passionate and creative coverage to the global Family Office communities. We have contributions and editorials from many of the worlds recognized industry experts in wealth management and the Family Office Sector. Family Office Elite Magazine is a must for any serious professional who wants to stay apprised of current trends within this specialist sector.
LinkedIn is one of the most valuable social media tools you have when it comes to personal branding. Here are my top 30 tips, tricks and secrets for maximizing the value of LinkedIn so you can expand your success. You'll learn how to build a stellar profile and use LinkedIn to build and nurture your network and do your job better!
The symbiotic relationship between smart cities and smart grids. The integration of city infrastructure with electric utilities infrastructure is indeed a natural way of building a system of systems to deliver a secure resilient grid through the emergence of integrated utility micro-grids.
EPIC RESEARCH SINGAPORE - Daily SGX Singapore report of 08 April 2016epicresearchsgmy
Epic Research Singapore have best technical research team, Our research team provide Daily report on SGX Singapore and SGX Exchange, You can get Daily Favorable Tips & future Strategy for SGX Stocks Market.
Many Wealth Managers positioning themselves as a family office to wealthy investors. The term "family office" connotes sophistication, independence and objectivity.
The symbiotic relationship between smart cities and smart grids. The integration of city infrastructure with electric utilities infrastructure is indeed a natural way of building a system of systems to deliver a secure resilient grid through the emergence of integrated utility micro-grids.
EPIC RESEARCH SINGAPORE - Daily SGX Singapore report of 08 April 2016epicresearchsgmy
Epic Research Singapore have best technical research team, Our research team provide Daily report on SGX Singapore and SGX Exchange, You can get Daily Favorable Tips & future Strategy for SGX Stocks Market.
Many Wealth Managers positioning themselves as a family office to wealthy investors. The term "family office" connotes sophistication, independence and objectivity.
A single family office is a holistic full balance sheet wealth management and financial solution for ultra-wealthy individuals or families. It is an organization dedicated to preserving, and investing the capital of its family.
Single family offices have been around in different forms for over 500 years but it was just in the 1930's-1960's that the modern day version started to take form...and even know many people do not understand what a single family office does or how they operate or invest their capital.
The single family office industry is growing quickly and if you would like to learn more about creating a single family office, family office executive search, family office co-investments, family office jobs, family office training, our family office association or single family office investments you will enjoy this PowerPoint overview of the industry. If you would like to see how to work with our team please visit http://SingleFamilyOffices.com or http://BillionaireFamilyOffice.com
Thank you for following our work.
Richard C. Wilson
CEO/Founder
Family Offices Group
Billionaire Family Office
Single Family Office Syndicate
Capital raising tips and tricks - Based on some of the main questions we get on raising capital, here are some tips and tricks to successfully do so. Here at Wilson, we get many questions on how to best raise capital, how to reach out to family offices, how to raise money for businesses, funds, investments, etc., and which strategies, tips, and tactics we would recommend be implemented to have successful capital raising.
What is a family office? What are family offices doing today? How should we reach out to family offices? How should we reach out to investors in general? What's the best way to position ourselves?
FOSS Family Office Advisory supports you with the establishment of a Single-Family Office or the selection of a Multi-Family Office in Switzerland or abroad.
The FOS aims to be a space for confrontation, learning and knowledge exchange for all FOs and the asset managers of the family business.
A place to orient oneself in the new trends in terms of investment: Impact Investing, Co-Investing, Alternative Investing and Shadow Banking will be at the centre of all discussions.
PANGEA Private Family Offices - The Silent Paradigm Shift in Family Wealth St...Declan Winston Ramsaran
In part one of this report we discussed the current state of trust in financial institutions and the related client response. At the conclusion of that report we committed to follow-up with insight into the private world of family offices and expand on reasons why wealthy families are forsaking the unfulfilling relationships they have with their existing advisors. This report is intended to serve as an intro- duction to the private world of family offices, and while not an exhaustive study, it will provide the reader with a better understanding of what a family office is and why families are drawn this form of family wealth management model.
Family Business, Non Family Business, Urban MythsSteven Brown
Looking at the differences between Family business, Non Family Business and Urban Myths. The Knowledge and understanding needed for C level people, companies and owners.
How one professional firm went from start up to $65 million in 10 years. Organizational design matters when it comes to growing and developing professional staff.
Read the OpenWorks janitorial franchise newsletter from April 2013. For more news archives, please visit http://openworksfranchise.com/franchise-opportunities/resources/newsletter-archives/
The core concept behind Dirty Little Secrets of Family Business is not a “dirty little secret” at all. In fact, it’s an obvious realization: Families and businesses are not the same. The problem (and this is where the “dirty little secret” comes in) is that most under-performing family businesses don’t realize this. Serious problems can occur when you mix family problems with the family business and vice versa. When family members don’t communicate, are under-prepared or overpaid, the family business is destroyed.
The way out of this little conundrum for family businesses is proper planning, but author Henry Hutcheson is focusing on more than a succession plan or family meeting. His goal is to tackle five “traps” that family businesses often fall into. These are problems in:
• Communication,
• Delegation,
• Financial Responsibility,
• Fair Compensation and
• Education.
By addressing these “traps” with policies and procedures, family businesses can steer clear of the majority of relationship-destroying behaviors that plague other businesses.
Happy Reading
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Family business need to adopt effective governance practices such as family office and on board independent directors. In this article, Browne & Mohan consultants describe what, when and how to go about implementing these in family businesses
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chapter 10 - excise tax of transfer and business taxation
Richard Wilson's Family Office Monthly
1. (212) 729-5067
FAMILY OFFICE MONTHLY
October 2014
Upcoming
Family Office
Conferences
The Annual Single
Family Office Summit
February 9th, 2015
New York City
The Direct Investing &
Deal Flow Summit
May 8th, 2015
Chicago
100% Free Admission
Free Admission for
Qualified Family Offices
Registration Opens Soon
www.WilsonConferences.com
com 1
Welcome to another edition of
Family Office Monthly, an in-side
look at the family office
world from the Family Offices Group
association. We enjoyed seeing many of
you at our recent Family Office Super
Summit in Miami, where 325+ attendees
listened to more than 50 speakers,
multiple panels, and took advantage of
plenty of networking opportunities
throughout the 3-day conference.
In this month’s edition, we will first un-cover
several myths in the family office industry. Starkey International will
provide a detailed look at the cost of turnover in the private residences of
high-net-worth families. As usual, we connect you with a number of free
resources including the latest episode of the Family Office Podcast and
access to our recent Family Office Q&A webinar. We sincerely hope that
you enjoy this edition and please do not hesitate to contact our team via e-mail
to Clients@FamilyOffices.com or speak with our client services
specialists at (212) 729-5067.
4 Family Office Industry
Myths
In this free article, I wanted to share a
few myths in the family office industry
that I’ve heard over the years. I hope
you enjoy this piece and that it gives
you more insight into how family
offices operate. Page 2
Institutional Capital
Changing the Tide for GPs
I wanted to share a few comments af-ter
meetings this week with a number
of GPs in New York. One consistent
message that came across is that the
large institutional investors are still
the main draw for large funds but
there is increasing pressure to provide
preferred terms. Page 5
The Real Cost of Turnover in
a Private Residence
When there is Staff turnover in a
private residence more may be lost
than just time and energy to rehire
for that position. There is substantial
Financial and Emotional loss for the
Principals and family. Page 7
More 2015 Conferences to be
Announced Shortly
2. The Single
Family Offi ce
You can read more articles
like these in The Single Family
Offi ce by Richard C. Wilson.
You can grab your copy of
this Single Family Offi ce book
soon on Amazon.com
If you want to listen to one of
the interviews included in this
book, visit SingleFamilyOffi c-es.
com/audio2 to download a
free mp3 recording.
Looking to meet other sin-gle
family offi ces in person?
The Family Offi ces Group
hosts many live conferences
throughout the year in great
locations like Manhattan, Sin-gapore,
and Miami. At least
once a year, we host an exclu-sive
gathering for single family
offi ces and affl uent families to
meet, share experiences, and
build relationships.
If you would like to be con-sidered
for membership (free
to single family offi ces) please
contact us:
E-Mail:
Clients@FamilyOffices.com
Telephone: (212) 729-5067.
E-Mail: Clients@FamilyOffi ces.com
4 Family Offi ce Industry Myths
In this free article, I wanted to share a few myths in the family offi ce industry
that I’ve heard over the years. I hope you enjoy this piece and that it gives
you more insight into how family offi ces operate.
1)Th ere is no family offi ce industry.
The truth, that the
family offi ce industry is
thriving and serves hun-dreds
of thousands of
high-net-worth families,
is becoming harder to
dispute, but every once in a while I hear
a professional bring this up.
The main reason that people question
the legitimacy of the industry is that
most family offi ces operate discreetly
and do not solicit their services public-ly,
unlike mutual funds, RIAs, or fi rms
in other investment industries that are
more public. If you have attended one
of our Family Offi ces Group confer-ences,
visited a single or multi-family
offi ce in person, or even just scrolled
through the more public family offi c-es’
websites, you will fi nd plenty of
evidence to show that family offi ces
exist and there are thousands of family
offi ces operating in the U.S. alone, not
to mention many more globally.
2) Tax effi ciency is king.
Tax effi ciency is certainly an important
consideration in family offi ce wealth
management but it is not the only
aspect family offi ces care about. Family
offi ces manage hundreds of millions
and even billions of dollars so tax con-sequences
have to be considered, but
the popular perception of tax effi ciency
dictating every investing decision has
not been the case in my experience.
Other areas of importance for family
offi ces include capital preservation,
diversifi cation, transparency, consistent
(even if moderate) returns, and hedges
against macro trends. Tax effi ciency
plays a part in most family offi ces’ in-vesting
strategy but it is not the moti-vating
factor behind every family offi ce
allocation decision.
3)Th ere are 3,000 family offi ces
globally.
Many industry reports and surveys sug-gest
there are only 3,000 or so family
offi ces operating in the world. That
fi gure seems very, very low and anyone
who has worked in the family offi ce
industry knows that there are thousands
of family offi ces that either do not
self-identify as a family offi ce or prefer
not to participate in surveys or public
activities. In such a private industry it
makes sense that so few family offi ces
would want to come forward and attract
scrutiny from the public, for fear of the
effect any publicity might have on their
family clients. Time and time again
I see family offi ces take sometimes
extreme precautions to preserve their
anonymity.
As I suggested above, some family
offi ces simply don’t think of them-selves
as family offi ces. For example, I
spoke with an executive at a fi rm that
manages the wealth for a successful
entrepreneur who is on the Forbes List
and they consider their fi rm a venture
capital fi rm despite the fact that it only
invests the founder’s capital, allocates
across different stages and asset classes,
and manages other services for the
principal including coordinating the
2 | Family Offi ce Monthly
3. (212) 729-5067
FAMILY
OFFICE
TRAINING
Did you know that you can
access great family office inter-views
and other training resourc-es
with your enrollment in the
Qualified Family Office Profes-sional
(QFOP) program.
The QFOP is the only family
office training program designed
for family office professionals, by
family office professionals.
Our goal is to provide as much
education and resources on the
family office industry as possible
and the QFOP is the most com-prehensive
family office training
platform available.
If you would like to enroll or
learn more about whether this
program is right for you,
please visit:
www.FamilyOffices.com/Training
founder’s daily activities, finances,
and taxes. Based on conversations
with the team, it seems that venture
capital is only a very small part of
the firm’s activities and primarily the
purpose of the business is to serve
as a private wealth management firm
for the founder and his family. To
me and most people, that fits the
definition of a single family office
but for whatever reason, this firm
considered itself a private venture
capital firm. There are thousands of
other business founders, executives,
families, and ultra-wealthy individuals
who operate quasi-single family of-fices,
virtual family offices, or simply
use a division of their business as a
separate private wealth management
division.
4) Single family offices must have
$500M in AUM minimum.
I have met thousands of family offic-es
in the last few years and I’m sure
you would be surprised by the range
in services, structure, and assets un-der
Visit FamilyOfficescom for interviews, insights, introductions, & more resources| 3
management.
We allow qualified single family offic-es
to attend our conferences for free
and we have to vet many inquiries
from supposed single family offices
that are really just a wealthy service
provider with less than $1M in AUM.
Of course, we can’t all be million-aires
but single family offices serve
a specific segment of the investor
community, those with substantial
net worth in the millions of dollars.
When you are managing in the $1-
100M range as a single family office,
many families find that the costs of
managing a full-service platform and
full-time staff are too great to justify.
These families typically opt for what
may be a more cost-effective wealth
management solution such as a
multi-family office, private bank, or a
virtual family office.
Based on my personal experience,
I would estimate that the majority
of single family offices have at least
$100 million in AUM and the typical
single family office manages at or
around $1 billion. I have met several
impressive single family offices that
manage less than $1 billion but
allocate substantial capital to direct
investments, run an aggressive port-folio,
and provide a diverse range of
services for the family. There is less
margin for error when operating a
lean single family office of just $100
million or $200 million in AUM, but
it can be done, and many have done
so successfully for years.
There remains a perception in the
industry that single family offices are
reserved only for those with $500M
and that no one can successfully op-erate
much below that level. My ex-perience
has led me to believe that is
far from the case and talented teams
lead single family offices of $100-
500M to provide comparable services
to their larger $500M+ peers.
We hope that this article helps clarify
a few of the common myths in the
industry and leads to greater under-standing
of family offices and their
clients.
4. E-Mail: Clients@FamilyOffices.com
Location Matters for Family Offices
Greetings from Kuala Lumpur
Richard Wilson presented at a private equity conference in Kuala Lumpur,
Malaysia this month. Richard reported a number of trends that he observed
after meeting with local families and investment firms:
• Many Asian family offices are heavily weighted toward hard assets including
gold, real estate, and direct equity stakes in businesses.
• To the extreme, some local HNW families have up to 20% invested in gold, almost
completely allocated to real estate only, or capital is locked up in illiquid direct
equity investments in businesses.
• There is a lack of high-quality deal flow in Asia, according to many of the Asia-based
family offices we spoke with.
• There is a dilemma of preferring to only deals within the family’s inner circle, while coping with poor deal flow
available to these very private families.
• There is slow, but marked movement toward investing in funds. Many families seek co-investment opportunities but
are too private to do so effectively.
4Monthly
As we have noted elsewhere in this edition of Family Office Monthly, we
are hosting our end-of-year Summit in Miami. Why Miami? Well, to
be frank, it's where the family offices are, at least many more of them
than other potential locations that we considered for our final
conference this year.
There are many factors that lead family offices to open an office,
headquarters, or relocate as a family to Florida including tax-friendly
environment, good business conditions, and, of course, the climate.
Florida is unique in many respects, but it is one of several attractive
destinations for family offices. Family offices and their ultra-wealthy
clients are keenly aware of the tax environment, access to talent,
attractiveness of the destination, and other important factors that
distinguish one city, state, or even country from another.
In years past, we've seen a number of global locations rise in popularity among the HNW community for different reasons, such as
Switzerland with its secure and discreet private banking, Singapore and its strong governance and agreeable tax structure, and Brazil
largely due to its access to Latin American markets and high-growth economy. In recent years, we've seen here in the U.S. a move
toward Texas and Florida by family offices for the same type of reasons families move their office or completely relocate to Monaco
or other wealth-friendly locales. In our own business, we have considered opening an office in Florida because of the business-friendly
attitude and the strong community of family offices there. Like many businesses and family offices, however, it is hard to
not have at least some presence in New York, San Francisco, London, Chicago, and other top finance capitals. Unfortunately, these
cities are both essential business locations and punishing tax environments, presenting a challenge for many family offices.
We are closely monitoring the migration of family offices to more attractive locations, and away from the more popular finance and
wealth management cities. It will be interesting to see how families adapt to changes in laws, taxes, and business regulation going
forward.
5. INSTITUTIONAL CAPITAL CHANGING THE TIDE FOR GP'S
By Theodore O’Brien
I wanted to share a few comments after meetings this week with a number of GPs in New York. One consistent
message that came across is that the large institutional investors are still the main draw for large funds but there
is increasing pressure to provide preferred terms. Large private equity shops and hedge funds are being asked to
outperform their smaller competitors and acquiesce to ILPA-like requests for lower fees, better transparency, and other
demands that have risen in recent years.
Inflows of institutional capital,
especially from non-U.S. investors
including pensions, sovereign
wealth funds, single family offices,
quasi-governmental investors, and
other institutional capital sources,
have helped offset some of the
anticipated drawdowns for the larger
fund managers. Based mostly on anecdotal evidence and
discussions of capital raises and fund closings, I have
found that many of the $1B+ alternative funds have found
“sticky” capital from outside the U.S. that has helped
soften the blows from investors looking to invest in other
managers, other asset classes, or manage capital in-house.
Inflows from new capital sources are especially important
given the headwinds facing the leading asset managers
raising capital and maintaining investor commitments,
particularly hedge funds. I’m sure many of you caught the
recent stories on shifts in pension fund allocations away
from hedge funds and other alternative asset classes (1).
This wasn’t shocking to anyone who has been speaking
with LPs and GPs in recent years but it is telling that the
biggest pensions like CalPERS are rapidly reducing their
exposure to hedge funds going forward. Many institutional
investors have sought to emulate the sophisticated CalPERS
portfolio management system and the California pension’s
decision marked an important moment for GPs, particularly
hedge fund managers, that has already been followed by
similar allocation shifts at other pensions (2).
In some ways, this shift means that family offices, HNW
individuals, and smaller institutional investors will be
more important for funds seeking capital; but the wealth
being created in Asia and elsewhere overseas appears to
be a bigger focus for the biggest funds in the U.S. The
growing sophistication of many investment teams at
pensions, sovereign wealth funds, endowments, and family
offices around the world has made many investors more
comfortable allocating in alternatives, rather than parking
their money with traditional asset managers or managing
money in-house through bonds, equities, and foreign
exchange. For now, it seems that many funds have been
able to shift capital raising efforts abroad and avoid the
harshest effects of changing investor demands.
Another way that private equity and hedge fund managers
have been able to cope with diminishing interest from
public pensions and U.S. institutional investors has been to
tap into HNW individuals and smaller investor accounts.
An article in DealBook yesterday showed how private
equity funds like Carlyle and Blackstone are lowering
minimums and increasing access to the asset class for
smaller accredited investors (3). Whether it is by attracting
more individuals or working with investment banks to bring
in feeder funds, alternative funds are rapidly adapting to the
shifting sands beneath their feet.
The shifting preferences of the largest institutional
allocators have certainly had an impact on the private equity
and hedge fund business models in recent years.
(1) http://online.wsj.com/articles/pension-funds-eye-reducing-
hedge-fund-investments-1413762698
(2) http://www.pionline.com/article/20140929/
PRINT/309299998/too-complex-for-calpers
(3) http://dealbook.nytimes.com/2014/10/20/private-equity-
titans-open-cloistered-world-to-smaller-investors/?_
php=true&_type=blogs&_r=0
5 fice Monthly
E-Mail: Clients@FamilyOffices.com
6. Cyber Security: A Growing Concern
6
(212) 729-5067
For corporations around the world, cybersecurity
is a major concern. Family offi ces are similarly
worried about data breaches, attacks by hackers, and
accidental information leaks. Theodore O’Brien, Managing
Director of the Family Offi ces Group, recently sat down
with the head of family offi ce services at a top accounting
fi rm and the executive noted that his clients are increasingly
concerned about their exposure to cybersecurity attacks.
Cybersecurity has certainly become a point of emphasis
for private banking and family offi ce clients, especially
after high-profi le attacks on Home Depot, Target, and
JPMorgan. As the graphic below shows, IBM Security
Services found that there were 1.5 million monitored cyber
attacks in the U.S. last year. Family offi ces are looking to
protect sensitive information including tax fi lings, business
records, internal family discussions, and other data that their
clients need to keep private.
Family Offi ce Podcast:
Large Family Offi ce Best Practices Presentation
Earlier this year, the Family Offci es Group hosted a Family Offci e CIO Summit in Los Angeles. At the event,
Richard C. Wilson presented on family offci e best practices employed by large, successful family offices.
To hear Richard’s presentation simply visit our Family Office Podcasts and search for the most recent episode.
http://FamilyOffi ces.com/Podcast/
To learn more about single family offci es, attend our upcoming family office conferences starting early next year.
Our next event is our Annual Single Family Office Summit in New York on February 9th, 2015.
Learn more at: http://WilsonConferences.com/
Be sure to check out the other 20+ Family Offci e Podcast episodes for free: http://FamilyOffic es.com/Podcast
7. 7
E-Mail: Clients@FamilyOffices.com
THE REAL COST OF TURNOVER
IN A PRIVATE RESIDENCE
When there is Staff turnover in a private residence more may be lost than just
time and energy to rehire for that position. There is substantial Financial and
Emotional loss for the Principals and family. We will explore these areas below.
First of all, consider the
overall knowledge the Staff
employee may have of the
Procedures in the home
and on the Property or
the Favorites of the family
or guests that are rarely
written down.
The majority, if not all, of
this knowledge is at risk of being lost when the Staff
employee walks out the front gate.
Consistency of the day to day operations of the home,
property and family schedules will be disrupted.
Relationships are created when there is Staff working
in a private residence. Separation can be difficult for
the family, particularly for children or elderly parents.
Familiarity provided comfort and a new hire will be
stressful until they are proven to be trustworthy.
It is very important to take the necessary time to write
a real Position Description. Fluff will not serve the
rehire process or your efforts in the process.
Consider if they have been trained in Private Service,
and if their salary requirements are in line to as you
sort through resumes. Higher end clients prefer to use
an experienced Private Service recruiter or an Institute
such as Starkey as they should be expected to pick the
high 2-3 candidates that actually fit your requirements
and because the industry is unique and excellent
Private Service professionals are rare.
Overall replacement of one staff person can take up
to 30 days or more. Do not rush the process!
Competent hiring practices for private staff are not
the same as corporate practices.
When a Staff employee exits employment, be sure to
change access codes, obtain keys, cell phones, other
equipment and property, change passwords where
required, notify security personnel, retrieve credit cards
and other financial instruments in their position during
the course of their employment. Also, if provided to
the employee you will collect autos, facilitate vacating
residential property, and processing the final pay. This
can take from 2 days to 2 two months to complete
determining on policies and agreements.
Now let’s explore the Financial costs with paying your
Family Office Representative to complete the above
work. The cost of the Representative’s salary could
exceed $25,000 for their time during the process plus
utilizing a placement agency paying up to $50,000
when hiring a higher end professional. This overall
process of termination and hiring can easily exceed
$100,000. False starts and bad hires can double this
figure.
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There is no amount of monetary value that can
be placed upon the Emotional loss of a trusted
and valued primary Staff employee. Everyone in
the family from the children, the principals, and
the grandparents will experience the loss. Primary
support is no longer there. With new support
not privy to the not so obvious, the many special
relationships and agreed to duties that had been
developed to meet the needs of the family are lost.
The remaining primary Staff employees, trusted
vendors, and other support persons will also have
to start over with communicating how their work
is completed, the expectations, and the emotional
value held by the Principals. This also takes time,
which the Principal will be billed for. Starkey
estimates this could cost your high net worth
Employer an additional $50,000.
Security is at its weakest point when new
primary Staff employees have to be replaced.
These primary Staff employees may include
the Household or Estate Manager, Executive
Housekeeper, Private Chef, Nanny or Driver.
Overall fi nancial cost is a minimum of $150,000.
Hire well!
Written by:
Paula Faulkner
Chief Financial Offi cer
Households without basic personnel policies
further place themselves at risk. Specifics include:
• Use of Illegal and Legal Drugs and alcohol;
remember marijuana is legal in Colorado and
Washington
• Absentee policies
• Dress codes
• Theft policies
• Sexual and other Harassment
• Safety and use of equipment policies
• If the private principal employs more than
15 staff employees, there are other federal
guidelines that must be adhered to
• Confi dentially Agreements
• Basic procedures including where to park,
which bathroom to utilize, which doors to
enter and exit by, where to store their purses/
bags and hang their coats and which rooms
within the home are off limits
However, if you write it, the policy must be carried
out or you further place yourself at risk! In
summary, hiring and terminating Staff employees
is an expensive and time consuming and tedious
process. Do it right and do it once!
Starkey International Institute, Inc.
http://www.starkeyintl.com/
9. 5Traits I See in Exceptional
E-Mail: Clients@FamilyOffices.com
Investment Professionals
By speaking at conferences and meeting with
dealmakers and investors around the world, I
have noticed a few key traits that set apart the
most productive and exceptional investment
9 | Family Office Monthly
professionals from the
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(212) 729-5067
1. They now their numbers:
By this, I don’t mean that these individuals are
mathematical geniuses necessarily, rather these
professionals know by heart the most important
statistics and information on a deal. You never find
top investment professionals sifting through notes or
struggling through “Ummms” and “Let me get back to
you on that,” these pro’s prepare for tough questions
and have a ready answer.
2. They are productive /7:
It has become typical for advice articles to suggest that
you take more time to nap, meditate, and stretch in
the sun. But for top investment professionals, most
of their waking hours are spent productively. They’re
reading their most important e-mails during the
commute to the office, they’re socializing with potential
business partners, they’re reading or doing a conference
call while they exercise. These investment professionals
do not burn themselves out with poor work-life
balance, but they do make the most of their spare time
and maximize what they get out of each day.
3.They aren’t afraid of the spotlight:
Whether it is speaking to an audience at an investment
conference or taking the lead at an investment
committee meeting, these investment professionals are
usually front and center. It is hard to build relationships
and keep up with your peers if you shy away from
opportunities to connect and make yourself known.
4.They look for synergy:
Of course, any good investment banker or investor
has a keen eye for synergistic opportunities, like a
great bolt-on addition to a portfolio company or an
excellent acquisition target. Beyond dealmaking, many
top investment professionals know how to make
powerful introductions, even when there is no direct
personal benefit of the introduction. They can do this
because they take the time to think through what the
people in their network are seeking and then they pair
accordingly. They never make introductions just for
the sake of doing so, rather they look for real synergy
between parties.
5. They know how to say “no”:
It’s easy to say “yes”, even if it isn’t the right answer
for you yourself, the other party is always hoping
for an affirmative response and you get the instant
gratification of knowing you’ve said what the other
person wanted to hear.
But saying “no” takes conviction and courage,
especially when the person asking is really hoping for a
“yes.” In the investment world, there are many reasons
that can push you to say “yes” even if you know you’re
not interested.
Commissions depend on your answer, your firm might
be under pressure to allocate capital, the research might
suggest you should go for it, etc. But the exceptional
investment professionals are confident in their ability to
discern for themselves and always willing to say “no” if
they believe it’s the right call.
Many times this means disappointing someone else,
but it also means they might then wait for a better deal,
or spend less time reviewing a deal they know isn’t a
winner, or save their investors money churning through
mediocre deals.
Note: These are only a few traits that I have found in
the people I find to be truly exceptional investment
professionals.
This list is not exhaustive and I’d love to hear your
suggestions for additions to the list, nor is this list
an indication of investment success, it is only a few
qualities that are possessed by people I admire in the
investing world.