Family Office Investment Dynamics, Conspicuous Consumption & Social Inequality & Redefining Local - E284

“I hope they invest in the local ecosystem and not just in financial assets. The benefit of being wealthy is you can do what you want. Instead of a Lamborghini, can you invest in public art and public education? Can you invest in sports and things that a lot of people can enjoy? That improves the quality of life in the city and the people around you. It’s not just for personal benefits. Hopefully, we build more robust and deep capital markets, which are things that New York and London have had a stranglehold on, and it would be great to be able to shift some of that center of gravity out to Asia.” - Shiyan Koh

“In the short term, family offices will continue to go up. Singapore is working hard to attract wealth from Europe, the US, and China. I think more jobs will be created because more family offices will start to hit their two to three- year timeline to start hiring local professionals. That will start emerging as its own vertical.” - Jeremy Au

“One of the concerns people have in working for a family office is how much decision-making authority they will have. Ultimately, is everything going to be decided by the principal, or will you have the latitude to build a more institutional investment process and committee? At the same time, there is an incredible opportunity in working with families that want to be aggressive, want to diversify, and build new platforms. I’ve seen friends come out from institutions to help bigger families build new verticals.” - Shiyan Koh

Jeremy Au and Shiyan Koh shared insights regarding family offices and their influence on Singapore's economy were discussed. They explored the motivations behind family offices seeking global investments, the unique characteristics of family office landscapes, and the challenges and opportunities they present.

Key Topics Discussed:

• Global Investments: Family offices are increasingly diversifying their portfolios by seeking investments outside their home countries, driven by the desire for exposure to different geographies and asset classes.
• Role of Private Banks: While family offices typically receive advice from private banks, they seek additional opportunities beyond what traditional financial institutions can provide, particularly in terms of access to emerging managers or smaller funds.
• Allocation and Family Dynamics: Financial advice to family offices revolves around diversification, helping them move away from being solely exposed to their core operating businesses. Discussions around wealth transfer, familial decision-making, and philanthropy play a crucial role in shaping their strategies.
• Impact on Local Economy: Singapore has witnessed a rise in family offices, attracting talent and investments, which contribute to job creation and economic growth. Family offices are encouraged to invest locally and contribute to the development of capital markets.
• Societal Considerations: Balancing the influx of wealth with social cohesion is a challenge, and conversations around social support, inequality, and defining the notion of "local" are ongoing. The importance of avoiding conspicuous consumption and embracing community engagement is emphasized.

Watch, listen or read the full insight at https://www.bravesea.com/blog/family-office

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