It is very different from being able to manage wealth for family members than being able to start a business. Many families outsource family wealth management to an accountant or wealth manager. However, this is not the same as the entrepreneurial skills required to generate wealth 家族办公室. You can manage your family’s business independently and set vital parameters relating to your values, governance, and goals. This will help ensure your family’s stability and long-term wealth.I have spoken to Family Offices (FOs) and have done two deals with them. While I’m not an expert in dealing with them, I am still learning. I learned these lessons as I transitioned from the syndication area to a family office.
As your business grows, it will become more difficult to syndicate funds for your deals. As you reach $20M+ equity, managing each deal and the administrative burden becomes more difficult. The syndication model aims to build an extensive list of investors, with 400+ investors per deal. Family offices are designed to build relationships with 20 or more family offices. Each sale will have one Family Office, and the rest will come from you and a small number of accredited investors. Each has its pros and cons. While syndication can yield more deals per deal, FO can offer you significantly more deals. Most people start with syndication, but the big ones have switched to FO or PublicREIT over the years.
Family Office Association Hong Kong (“FOAHK”), Hong Kong’s independent trade association for family offices, is Hong Kong’s leading family office trade organization. We are a consultative industry body that represents the interests of family office members and encourages collaboration between members, governments, and other professional bodies in Hong Kong. We are committed to providing the best industry guidance and promoting family office growth. “First Chinese entrepreneurs have rapidly risen to the top of the list as the second-largest billionaire group in the world. A family office is the best structure if you want to transfer wealth and preserve it for your family.
Global boom is sweeping the Family Office sector. Asia is leading this surge. The number of family offices in Asia-Pacific grew 44% in the past two years, more than in any other part of the world. This boom is partly due to rising wealth and eastward migration to global prosperity. It’s also the result of the industry’s changing nature and wealth management’s growing complexity. Traditionally, the concept of the family office was rooted primarily in the idea of wealth and legacy protection. Wealth expansion is a priority, even though it remains the foundation of the business. This has led to a broader range of family-office investments beyond traditional asset classes, including venture capital, private equity, ESG investments, and cryptocurrency.
The research report offers recommendations to develop Hong Kong as a family-office hub. These include tax considerations, regulatory requirements, talent development, and setting up a one-stop liaison and service center. Hong Kong’s financial sector is mature and sophisticated, which has provided a rich source of knowledge for the growing family-office sector. Hong Kong’s financial industry employs close to 7% or 263,000 people. “Family offices can adopt Fintech apps to monitor and manage risks in their investments portfolio.”Expertise is more in demand as investments become more complex, and families with high net worth are increasingly globalized.