The Changing Landscape of Global Wealth

Jamie McLaughlin is a management consultant focused on firms who serve the UHNW and family office client segments.

Listen in!

Key Highlights:

[00:01 - 19:06] How Multi-Family Office Platforms Grow Rapidly

• Jamie discusses about the overall market 
• There is a category of multifamily offices called "commercial multi-family office," which refers to firms that have never had a first family but serve higher, larger families
• These firms have grown tremendously in the past few years, and many are now seeking larger, more complex clients

[19:07 - 23:59] What to ask when interviewing a multifamily office

• Private equity firms typically rotate capital within a business unit for five to eight years, and there is a misalignment of interest between the capital sponsor and employees or clients
• The traditional 10-year term is problematic, and how younger principles are considering their own transition to commercial multi-family offices
• Interest rates on debt financing are more expensive, and this may take a tail off the aggressive nature of multiples

[24:00 - 43:19] Characteristics of Great RIAs

• The four types of investment firms are: commercial banks, trust companies, RIAs, and brokerage firms
• The culture of a RIA is often that of a "militant fiduciary"
• Why sales is seen as a bad word in the RIA culture, and acquiring new clients is often a condition of staying in business

[43:20 - 47:20] Closing Segment

Key Quotes:

“Debt is sometimes a means of the financing structure in some of these deals. Debt may be in fact used by the firm, not in the deal itself, but in their capital structure.” - Jamie McLaughlin

“It doesn't make any sense to have a relationship price. You really lose money on that. So pricing discipline is critical.“ - Jamie McLaughlin

Connect with Jamie:

LinkedIn: https://www.linkedin.com/in/jameshmclaughlin

Website: www.jhmclaughlin.com

Connect with me on LinkedIn!

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