The Family Office Sherpa

Family Offices & The Endowment Model

21 snips
Sep 8, 2024
Discover how family offices leverage the endowment model for long-term wealth preservation and unique investment strategies. Explore the challenges of adapting this model to align with individual family goals. The discussion also highlights evolving roles between institutional asset consultants and wealth managers, advocating for a holistic approach to portfolio management. Tune in for insights into better investment governance and strategies tailored specifically for family offices!
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ANECDOTE

Australian Endowments

  • Shaun Parkin managed three large Australian university endowments at State Street.
  • He noticed family offices sought similar portfolio construction to the endowments.
INSIGHT

Endowment Model Appeal

  • Family offices are attracted to the endowment model's long-term focus and intergenerational wealth transfer capabilities.
  • It prioritizes distributions and capital growth, aligning with family office goals.
ADVICE

Endowment Fund Setup

  • Family offices often establish a separate fund for endowment-style investments, sometimes called a "future fund."
  • They emphasize core and satellite investments, allocating more to inefficient satellite investments like alternatives.
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