Thursday , July 7 2022

New Trend: Rich People Building Family Offices to Enrich


The Wall Street Journal has written that only those who had more than 100 million people initially used family services. money available. However, the situation has changed over time and the cartel has fallen to 5 million. dollars.

Philip Watson, Global Investment Lab Chief Investment Officer and CiTi Private Bank's Principal Innovation Officer came to Re-define Vilnius International Financial Markets: Exploring New Horizons in an interview with DELFI on the growing number of family offices and why it all gets done by the rich. Although the specific examples of family offices or the most successful examples did not take confidentiality, he said that the family office network was wide and that he could gain a lot of experience with his organization.

Mr Watson says that the main purpose of family offices is to bring together all the activities that are taking place.

“As a GP, entrepreneur and entrepreneur, the family office helps to create a company management strategy. Typically, they also take part in other activities, such as heritage planning, day-to-day management, ensuring that everything in the company is looked after and ultimately invested for the benefit of the family. We offer a wide range of services ranging from simple banking services to a wide range of investment platforms. Family office types can vary considerably. From a small family office, which usually has few resources, to family offices, which we could call our organization because it does massive operations, globally, we use global platforms t to trade. (…) Families apply to understand what best practice is, what they should do, how to use the office as efficiently as possible. We talk to them about investment policy, family cyber security office, communications policy and the ultimate beneficiary. For most family offices it is difficult to get their own network where they can apply, understand what others are doing and adapt for themselves, in this respect we are creating great value, ”said Mr Watson. .

New Trend: Rich People Building Family Offices to Enrich

© DELFI / Karolina Pansevic

He says the great benefits to family offices are when they join the international network of family offices.

“What we see in the countries is that the family community can be very small and can often work together, but in other cases, because of the size of the market, they can compete for the same asset. Then, through a global network, we find ways to use the best practices and experiences of other family offices, ”he said.

In an interview with DELFI, Watson said, first of all, when designing a family office, one should decide what role he would play. One can decide what role the community will play, how it will work with it, and so choose the portfolio of investments that it wants to jeopardize, how much it wants to earn. According to him, when a company reaches a certain size, entrepreneurs start looking not only at keeping their accumulated capital, but where to use it to get the most benefit. This is how care is taken for generations and the future of the family.

“There are different reasons why you want to set up a family office and get involved. However, this is usually because it is difficult to take part in a number of different activities at the same time. You then need a structure that can control everything. Everyone has our own limits, what we know and the best way we can manage it. In some family offices, the final beneficiary will continue to play an important role in managing the office, but may not have sufficient knowledge in some aspects.

New Trend: Rich People Building Family Offices to Enrich

© DELFI / Karolina Pansevic

I believe that when a business grows, successful recruits and the number of people we agree can decide to take family offices due to lack of time. It uses its time differently. For example, some people prefer to carry out daily activities, for others to invest, to plan for maximum benefit. Different skills, expertise, competencies. Another reason for building a family office is with increased assets and opportunities that open beyond your network of contacts.

Many family offices are strong in their countries or regions, but the boundaries of this globalization are declining, encouraging business diversification, thinking about where the best opportunities are, building your assets. So our clients are mainly global citizens, they can have a business here in Lithuania, but the child will study in the US, invest in Asia, ”said Watson.

According to him, only one aspect of choosing where to build a family office is the tax environment in the country. According to him, this decision is usually determined by the proximity of the business or the family itself.

“But of course, the government can play its part in creating a more friendly environment for family offices. And taxes can play one of the roles. But this is not where the family office will. There may be different aims, there are offices that want to take on some important roles in the local economy, while others want a more prominent role on the world stage, ”he adds.

According to Mr Watson, family centers are usually seen as a concept that seeks his own benefit, but can also be seen from a different perspective – how a family office can contribute to the local community; w support.

It also ensures that the current political uncertainty, slow economic growth or not affects the setting up of a family office. In his view, the uncertainty needs to be more organized, more professional, to think about decisions and investments.

Philip Watson, Global Investment Lab manager and CEO of CiTi Private Bank. Philip has nearly 20 years' financial experience, and he has accumulated mainly working in CiTi Private Bank, where he held various positions in the Organizational Customer Group. For the last 15 years he has worked for Private Bank. While working in Private Bank, it has introduced many new transformation technologies, has supported radical innovations so that the CPB can offer investment services to its future clients. He has also participated in a number of decision-making forums, including the Global Investment Committee of which he was a member, and various Fixed Asset Committees, which provide a discretionary service in terms of market review and management. portfolio discretion. He is a member of the VPI Privileged Scientific Association of Privileged Securities and an Investment Institution, and has 6-level Certification for Private Investment Advice and Management.

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