Strategic and Succession Planning
Institutionalize and coordinate the Governance
Attendance to the Investment Committee
Head hunting and benchmarking
Coordination with accounting, legal and tax advisors
Analysis of investment opportunities
International Investment Vehicles Set up (Luxembourg, Malta, Ireland, Guernsey)
A business family that expects a liquidity event and wants to preserve the family cohesion, meanwhile taking advantage of scale economies in the management of their assets, besides having an office that coordinates services for the family and ensures the family's lifestyle. They identify a family office as the solution but have no experience and don’t know how to start.
We conducted an Assessment of ARCH® - Alignment, Rules, Communication and (H)abilities of the Family. Thanks to this analysis, we realized that the family needed first a Family constitution to align the interest of the family members on something else than the business. Second, they aimed clear rules to fix their expectations in all decision rooms. Third, we helped the family to choose other services required by the family and to decide whether to do it inhouse or oursourced.
The Family Office was born with the priority to attend the family governance while nurturing the financial education and unity thorough the Investment committee and the Philanthropy. Two family members who couldn’t participate in the operating company are now fully engaged in the family office governance providing a huge service to the whole family.
A Mexican family office willing to donate their financial portfolio from the first to the second generation while achieving wealth protection and tax optimization (i.e., deferring capital gains, protection against seizures, confidentiality, flexibility with back-to-back leverage to finance investments in the family operating companies.
We analyzed all the jurisdictions and the most appropriate investment vehicles meeting family's requirements and coordinated proposals ranging from financial institutions to independent structuring entities. After an elevated amount of meetings with all of them, accompanied with the family tax lawyers, we were finally ready to propose the most suitable vehicle with the best-in-class provider.
With all the information the family was able to achieve its goals by donating the portfolio through the set of an offshore tax efficient vehicle, maintaining control of the investment policy with a top tier custodian, at a low cost and preserving the leverage capacity.
A Family Office that has approved an Investment Policy Statement and needs its Investment Committee (IC) to implement it, as well as supervise and monitor the different advisors, including being accountable to the Board of Directors. The IC manages the relationship with up to three advisors. The information it receives is segregated, with different terminology and not comparable in terms of valuation and measurement metrics.
It is almost impossible for them to understand whether they are complying in aggregate with the objectives and constraints defined in the Investment Policy.
We reviewed the aggregate Investment Policy in addition to evaluating the return and risk objectives, to understand if these were in line with the Board of Directors' mandate.
We conducted an aggregate reporting system using comparable metrics of the performance of the different managers and advisors.
We defined the Investment Committee rules and we lead the meetings taking the roles of external coordinators, writing the minutes of the committee sessions and following up on to the tasks.
The Board of Directors gained confidence in the role of the Investment Committed and the family members of the Committee were acquintant with the role they were commanded to play. As a whole it improved the level of accountability of the family office and its members.