Beyond The Family Business Ron Diamond: Why Most Family Offices Shouldn’t Exist
14 snips
Apr 18, 2025 AI Snips
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Patient Capital Advantage
- Family offices offer a patient capital advantage contrasting with private equity's shorter investment horizons.
- This patient capital can enable longer-term compounding and less disruptive ownership compared to typical private equity cycles.
Family Office Model Flaws
- Most family offices should not exist as they are inefficient, fragmented, and lack governance.
- A well-structured family office needs estate planning, governance, and a clear mission before focusing on investments.
Build Foundation Before Investing
- Before making any investments, families should consult an estate planning attorney to build a strong foundation.
- Establish governance and a mission statement before focusing on investment strategies.