Family Office Roundtable: Technology, Talent, and Trends
Feb 13, 2025
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In this engaging discussion, Ben Goldman, a family office expert in PR, crises, and media, joins Natalie McVeigh, a family coach and mediator, Shaun Parkin, an investment governance consultant, and John Lueken, a multi-family office executive. They dive into the 2025 trends for family offices, dissecting the push for professionalization and the shift towards impact investing. The panel explores generational influences on wealth management and the vital role of technology, stressing the balance between human connection and digital innovation. A must-listen for future-focused families!
Family offices are increasingly adopting structured governance and specialized roles to enhance management and investment processes.
The next generation's involvement is reshaping family office strategies, emphasizing sustainability and ethical considerations through impact investing.
Technology integration is crucial for enhancing family office operations, focusing on efficiency while maintaining personalized service and relationship management.
Deep dives
Professionalization of Family Offices
Family offices are undergoing a significant shift towards increased professionalization, moving away from traditional, informal management styles to more structured, institutional approaches. Professionals in the space emphasize the importance of establishing governance structures and specialized roles, such as Chief Investment Officers and Chief Financial Officers, to manage complex investments. The trend reflects a growing recognition of the need for sophisticated governance in managing family wealth, investment policies, and risk management. As families transition to more formal structures, they also start to leverage external resources and expertise, necessitating a higher level of investment knowledge and strategic planning.
Rising Importance of Next-Gen Engagement
The engagement of the next generation in family offices is becoming increasingly crucial, driven by younger family members seeking to influence investment strategies and uphold family values. There's a notable emphasis on impact investing as younger generations prioritize sustainability and ethical considerations, sometimes clashing with older generations focused on financial returns. Establishing effective communication between generations is essential, with many families seeking third-party coaching to facilitate these discussions and align objectives. Programs focused on educating younger members about wealth management and the family legacy are being developed to ensure they feel invested and empowered within the family office framework.
Impact of Technology on Family Offices
Technology is transforming the landscape of family office operations, with a focus on streamlining processes and improving efficiency. The recent emphasis on adopting digital solutions, including AI and data analytics, showcases a shift towards leveraging technology for decision-making and investment management. Many families are exploring how to integrate these advancements without compromising personal relationships and tailored service. The conversation centers around ensuring that as family offices embrace technology, they remain grounded in their core objectives to provide peace of mind and stability for the family.
Succession Planning Challenges
Succession planning remains a critical yet often neglected topic within family offices, as families grapple with the realities of transferring leadership and responsibilities. Despite recognizing its importance, many families struggle to implement structured approaches to ensure smooth transitions between generations. The emotional nature of these discussions makes them uncomfortable but necessary, often requiring the assistance of external facilitators to guide conversations. Building governance frameworks and educating younger members about the family's purpose and values are pivotal to overcoming these challenges and ensuring the long-term sustainability of family offices.
Market Trends in Family Office Locations
The migration of families from high-tax and high-regulation areas to more favorable jurisdictions is becoming increasingly evident, influenced by external factors such as economic conditions and lifestyle preferences. Major cities, like Hong Kong and Singapore, are competing for family office registrations, with Singapore gaining traction due to its favorable tax policies and stable environment. This trend reflects broader patterns of relocation within the United States, where families are moving to states with lower taxes and better business conditions. Such shifts highlight the importance of location in asset management decisions and the desire for families to maintain control over their wealth in a supportive legal and economic landscape.
In our first ever panel discussion, we sit down with Ben Goldman, Natalie McVeigh, Shaun Parkin, and John Lueken to discuss 2025 family office trends. We dive into PWC's Global Family Office Deals Study, which highlights: Why family offices are becoming increasingly professionalized, the shift in family offices’ investment focus, the role of impact investing, and the “NextGen effect”.
To learn more about Mack International, please visit www.mackinternational.com.
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