The three trends reshaping Family Office Investment decisions…
Shifting sands — are Family Offices refocusing their Investment approach
There are three trends reshaping the Family Office landscape.
I have often hear Jedi’s in the Star Wars franchise refer to feeling a ‘shift in the force’ well I have felt a deep shift in the thinking and behaviours of Family Offices. Many might say it is a fundamental one.
Changing of the guard
Longevity and succession planning, the preservation of family wealth, assets and good name has for generations been priority over time. However as new types of tech enabled commerce emerges, to understand the technological shifts and advances, it is clear the new generation are more adept and familiar with Next Gen technology.
For several years the young members of families take over the reigns, have started to move away from dropping capital into tradition private equity fund structures as LPs, structures their parents and grandparents were happy to employ. Many younger family members quote their dislike of the 2% and 20% model, mentioning — why pay someone to manage money from day one, and get a ride on your capital? They agree VCs and PE funds may bring a deal or two, but what else? Families as investors are not involved and the younger members of the family want to be involved, want to learn about tech and understand where their capital is doing good. It is a millennial thing, and having 4 in my family I fully support it.
Is the current thinking of a new tech savvy generation the beginning of a more permenant systemic shift?
The trend is set as more and more Family Offices set up front of house operations, albeit small, to process and prosecute their own deals. Deploying their own cash directly. But most are learning it isn’t that easy, swamped with opportunities they have to sift, and lacking deeper technology understanding, but let’s be honest, most VCs don’t have either.
Move to PhilanthroCapitalism
Yes it quite a mouthful — PhilanthroCapitalism it doesn’t roll off the tongue and doesn’t feel like the two words belong together. The agenda focuses on simply “Doing…