“It is important to find a partner that you trust—trust is paramount and one with interests that are well aligned with your own and with a strong track record of successful deals in the sectors you are interested in,” Gooch says.


Open dialogue


While family offices look to create even greater returns from their portfolios, the number one ranked priority for families is creating and maintaining a good system of communication, which Gooch says is key for the future success of any family office. “Given the complex nature


consider looking into the process concluding that a formal written constitution is not for them. “Much has been written about the value of family


constitutions, but a lot of the benefits are actually derived from the process the family goes through in establishing their common values and shared purpose,” Grum says. While communication between the generations


topped the priority list for family offices, the ever- looming issue of succession planning moved at a glacial pace, with only 43% having a method in place. This is despite 70% of global


of a family office and the scale of wealth being managed, a good system of communication is imperative—it can help facilitate idea generation and consensus building over forthcoming strategies, the early identification of emerging problems, and approaches to mitigate them,” she says. Catherine Grum, head of family office services at KPMG, agrees and suggests families should


FAST FACTS cyber-attack cyber PLAN illiquid assets cOMMUNICATION


FAMILIES SHOULD CONSIDER LOOKING INTO THE PROCESS OF SETTING UP A CONSTITUTION— EVEN IF THEY DO NOT END UP USING THEM FORMALLY


families expecting a wealth transfer to the next generation within the next 10-15 years, says Gooch. “Succession can be tricky to


navigate, so we strongly advise families and those who support them to proactively begin planning for the future,” she says. “In fact, many multi-


generational legacy families say that they prepare for generational transitions decades in advance and the most forward-thinking


families have plans for both long-term succession and contingent succession.”


FAMILY OFFICES SUFFERED A CYBER-ATTACK IN 2017


31%


HAVE A CYBER PLAN IN PLACE


52% 46% Source: The UBS / Campden Wealth Global Family Office Report 2018


OF AVERAGE PORTFOLIO INVESTED IN ILLIQUID ASSETS, 2019 ALLOCATIONS EXPECTED TO BE HIGHER


SAY COMMUNICATION IS THEIR TOP PRIORITY


61%


ISSUE 75 SUPPLEMENT | 2019


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