(305) 503-9077

FAMILY OFFICE MONTHLY

September 2016

Upcoming
Family Office
Conferences
in 2016
The Family Office
Real Estate Summit

elcome to the September edition of Family Office Monthly. We are getting ready for this
month's Family Office Real Estate Summit. Seating is limited and expected to sell out but
as a Charter Member of the Family Office Club you can attend this event 100% free with your
membership and even if you missed this conference we have our biggest event of the year that
you will be able to attend in Miami, the Family Office Super Summit.
Beyond the events, we hope you access our extensive family office resources such as Family
Office Monthly, database solutions, family office training programs, webinars, and more. If y ou
would like to learn more about how we can work with you and your family office, please contact
our client services specialists at Clients@FamilyOffices.com and by phone (305) 503-9077.

Family Offices Reduce Hedge Funds Blurring the Lines Between

Family offices have been a big source of capital Family Office and Sponsor
for hedge funds and represent an important,
growing investor base to alternative investors.
Yet hedge funds have been beaten up by 2015
and family offices are feeling the pain in their
portfolio... Page 2

Family Offices Tackle Succession

In Richard C. Wilson's book, How to Start a

Family Office executive hiring and building
your family office team is covered at length.
But succession planning is a newer challenge
faced by those family offices that have a longstanding ... Page 4

Family offices blurring the line between old

institution, private banks, hedge funds,
private equity, and wealth management
firms... Page 6

Once-Hedge Fund Star, Current

Family Office Seeks Rebirth
Family offices have increasingly become the
refuge for fallen hedge fund and fund
manager stars who managed to hold on to
substantial wealth, despite losing huge sums
for investors. One such fallen star is John
Thaler... Page 7

September 30th
The Edison Ballroom
New York, NY
http://WilsonConferences.com/Real

The Family Office

Super Summit

November 28-30th JW
Marriott Marquis
Miami
http://WilsonConferences.com/Super

Reserve your seat today

http://WilsonConferences.com/
Reserve

www.FamilyOffices.com

E-Mail: Clients@FamilyOffices.com

(305) 503-9077

Family Offices Back Off Hedge Funds

Family offices have been a big source of capital for hedge funds and represent an important, growing investor base to
alternative investors. Yet hedge funds have been beaten up by 2015 and family offices are feeling the pain in their portfolio.
According to UBS Group, hedge funds have underperformed stock markets since the financial crisis by 10% in the 12 months
ending May.
This underperformance has led many family offices to cut their allocations to hedge funds and look for more stable
investments in bonds, equities, and commodities. It's not just middling performance, family offices and other investors are
turned off by the high fees charged by many hedge funds. It remains to be seen whether other alternative managers, in
particular private equity funds, will benefit from the reduction in hedge fund allocations. See below for a Bloomberg table
showing the results of the survey:

Wealthy families are joining institutions such as New Jerseys public pension plan in backing away from hedge funds after their
offices average return dropped to 0.3 percent in 2015 from 6.1 percent a year earlier. They are trimming stakes in hedge funds,
bonds and other similar asset classes in favor of illiquid investments like real estate and private equity. Cash holdings typically
make up about 8 percent of a family offices portfolio, the report said.
The report used the offices self-reported allocations, which were correlated with a benchmark index for each asset class, to estimate
returns. The 242 offices surveyed had an average of $759 million in assets. Most respondents managed the wealth of a single
family.
With private equity, more wealthy families are investing in funds rather than direct deals, said Higson. Smaller offices in
particular prefer funds since they dont have the expertise or staff to do due diligence on individual deals. The allocation to buyout
pools jumped 32 percent in the last year, while all forms of direct investing, such as providing early-stage venture capital, fell,
according to the report.
Looking ahead, more than half of family offices surveyed said they want to increase their co-investments, where they join a specific
deal alongside another private-equity investor.
Source: http://www.bloomberg.com/news/articles/2016-09-07/family-offices-back-away-from-hedgefunds-after-returns-decline

E-Mail: Clients@FamilyOffices.com

3 Family Office Case Studies - Video

I was just in Mumbai speaking at a couple of family office conferences and I took a few
minutes there to record a video of 3 family office case studies in India.
Watch the video: http://FamilyOffices.com/India-Case-Studies

(305) 503-9077

The Single
Family Office
You can order your copy of
this Single Family Office book
on Amazon here: http://
www.amazon.com/The-Single-Family-Office-Investments/
dp/1503345033/

If you want to listen to one of

the interviews included in this
book, visit SingleFamilyOffices.
com/audio2 to download a free
mp3 recording.

It's always interesting to see the different structures and histories of family offices that
are being formed around the globe.

Latest Podcast Episode: Family

Office Philanthropy Reminder

Looking to meet other single

family offices in person? The
Family Offices Group hosts
many live conferences throughout the year in great locations
like Manhattan, Singapore, and
Miami. At least once a year, we
host an exclusive gathering for
single family offices and affluent
families to meet, share experiences, and build relationships.

On the same trip to India, I recorded this quick episode of the Family Office Podcast
to talk about philanthropy. This is an issue of particular salience in India: http://
familyofficepodcast.com/family-office-philanthropy-reminder-from-mumbai

Be sure to subscribe to the Family Office Podcast for more lessons on

philanthropy, family office management, and wealth management: http://
FamilyOfficePodcast.com
Richard C. Wilson
CEO & Founder
Family Office Club
(305) 503-9077
328 Crandon Blvd. Suite #223
Key Biscayne, Florida 33149
http://FamilyOffices.com

3 | Family Office Monthly

If you would like to be considered for membership (free

to single family offices) please
contact us:
E-Mail:
Member@SingleFamilyOffices.com
Telephone: (305) 333-1155.

(305) 503-9077

E-Mail: Clients@FamilyOffices.com

Family Office Leadership Succession Challenges

In Richard C. Wilson's book, How to Start a Family
Office executive hiring and building your family office
team is covered at length. But succession planning is
a newer challenge faced by those family offices that
have a long-standing management team in place but
now need to plan for when the CEO or other key
members of the team retire. This issue, of course,
isn't unique to family offices (just ask Warren Buffett
or Steve Schwarzman) and family offices are often
formed by families that have already navigated a
succession in their previous or current business. But
many families never succeeded in finding a capable
successor in their own business and thus had to sell
to a strategic or private equity acquirer. So finding
a successor for the family office can feel a bit like deja vu to these families. We've met with many business owners
that struggled to find someone with the same vision, drive, and capabilities as the person who founded the business.
Similarly, family offices can have trouble finding the right person, especially if they've been fortunate in having a great
CEO running the family office previously. There was an interesting article by Susan Schoenfeld, CEO of Wealth
Legacy Advisors, on family office leadership challenges in Trusts & Estates.
Ideally, the identification of a successor should happen years before the anticipated transition, but this step is often the most emotionally
difficult for successful patriarchs and matriarchs, who may not believe that their children are ready or that they possess the right combination
of skills necessary to assume a leadership role. Successful entrepreneurs often reach their level of success through hard work and long hours in
the extreme, the vision to see what might be and exceptional business acumen, with or without formal education. These traits are not as
commonly found in second-generation inheritors, who dont face the same level of adversity.
As their advisor, you might provide your clients with some perspective and your objective view on the readiness of their children to take on
more of a leadership role, and you can suggest interim steps to help them get there. Further, you can help clients come to terms with the fact
that, while they may never believe that their children are ready to take over, its important for them to plan ahead.
Not only might clients think that their children are unprepared to assume the mantle of leadership, but also, they must overcome a
significant hurdle in not being ready to give up that mantle. Theyve gotten accustomed to the financial and psychological trappings of
leadership, including the literal and figurative seat at the head of the table, running family meetings and holding ultimate decision-making
authority. They might not be comfortable relinquishing this power role to someone else, even as they realize the necessity of doing so. A
possible solution might be to develop a governance process whereby aging clients can maintain leadership, though not necessarily day-to-day
management of their SFO.
One technique thats proven effective is establishing a new emeritus role for the retiring leader, to smooth the personal emotional difficulties
for the founder created by the transition. In this role, the retiring leader still retains a title, a continuing role with defined responsibilities and
some defined perks of their position as founder.

For the full article: http://wealthmanagement.com/family-business/family-office-succession-planning

4 | Family Office Monthly

(305) 503-9077

E-Mail: Clients@FamilyOffices.com

Free Webinar Access: Real Estate

Capital Raising
Like most family offices, real estate is a significant part of our portfolio and so we are always looking at
U.S. hotels, multifamily properties and other assets that fit our criteria. There's a wide gap between those
who are successful at marketing their real estate fund or project to family offices and those who struggle
to communicate the opportunity in a way that engages the investor and ultimately leads to a sale.
Whether we're talking about a family office looking to attract co-investors to take down a big asset or a
private REIT marketing to institutional investors, how you position your offer can mean the difference
between raising millions of dollars and losing out on that property you've been targeting.
So in a special episode of my Family Office Podcast, I'm sharing the full recording of our webinar on
Real Estate Capital Raising: http://FamilyOffices.com/Real-Estate-Capital-Webinar

If you want to hear from family offices on how they select real estate investments, be sure to join me in
NY on September 30th for the Family Office Real Estate Summit:http://FamilyOffices.com/Real
Hopefully the episode gave you some new ideas for marketing your properties and attracting investors.

Richard C. Wilson
CEO & Founder
Qualified Family Office
Professional (QFOP)
Family Office Club
(305) 503-9077
328 Crandon Blvd. Suite #223
Key Biscayne, Florida 33149
United States
http://FamilyOffices.com

5 | Family Office Monthly

E-Mail: Clients@FamilyOffices.com

(305) 503-9077

Blurring the Lines Between

Family Office and Sponsors
Family offices blurring the line between old institution,
private banks, hedge funds, private equity, and wealth
management firms.
In case you think that we are obsessing over family office direct investments and that
it represents a small niche of the total family office investing activities, we like to share
from other resources that explore this trend. As The Street reports, family offices are
increasingly setting up their own direct investments programs and even managing
money for other families and acting, for all intents and purposes, as a traditional
wealth manager.
They are more hands-on now, sometimes looking to sidestep the traditional fees paid to
private equity funds. Instead, they are starting to skip over the middle man, taking a
page from financial sponsors and investing direct now. Some family offices are
beginning to hire away talent from PE firms to handle due diligence work, deal access,
and transaction structuring concerns.
We are seeing where families either have direct investment programs in place or they are
creating the programs," according to Anna Maria Nekoranec, CEO of Align Private
Capital, a firm that works with about 130 family offices.
This is somewhat of a revolutionary concept, but it's gaining traction. Symphony
Technology Group began in 2002 as a family office for the money of entrepreneur
Romesh Wadhwani, who founded Aspect Development Inc. and sold it to i2
Technologies Inc. for around $10 billion in 2000. Now Symphony has a portfolio of
companies that altogether generate $2.5 billion in revenue.
Even Rockefeller & Co. isn't the same. The firm has traditionally been credited with
starting the first family office with the fortune that John Rockefeller made with Standard
Oil. Rockefeller & Co. was established to be the watchdog for the family fortune, but
today it runs money for individuals and families, family offices, foundations,
endowments and institutions and has $15.1 billion under advisement.
Source: https://www.thestreet.com/story/13749206/1/family-offices-start-taking-the-look-of-financialsponsors.html

6 | Family Office Monthly

(305) 503-9077

E-Mail: Clients@FamilyOffices.com

Once-Hedge Fund Star, Current

Family Office Seeks Comeback
Family offices have increasingly become the refuge for fallen hedge fund and fund manager
stars who managed to hold on to substantial wealth, despite losing huge sums for investors.
One such fallen star is John Thaler, who used to manage an impressive $3 billion fund
focused on tech, media, and telecoms. That is until he had to shutter JAT Capital
Management LP in 2015.
Now, after managing his own capital through JAT Capital Partners as a family office, Mt.
Thaler is eying a comeback. Like Steven Cohen of Point72, he is interested in managing
outside capital. As some investors have found 2015 an incredibly difficult time, it's likely we'll
see a few other hedge fund managers take their money off the table for a while to wait for a
better investing climate.
One of the people briefed on his potential plans said no decision is imminent and Thaler, 41, is weighing a
range of career options. He might remain a private investor through his family office, JAT Capital Partners,
invest in a new asset class outside of stocks, or focus on something besides finance entirely, such as philanthropy,
the person said.
Thaler declined to comment through an external spokeswoman. The two sources were not authorized to speak
publicly.
Thaler launched Greenwich, Connecticut-based JAT in 2007 after working at Chris Shumways hedge fund
firm Shumway Capital. JAT focused on Thalers specialty: the stocks of telecommunications, technology, and
media companies such as Time Warner Cable, Twitter and Yahoo.
In 2010, Thaler was named one of Tomorrows Titans by The Hedge Fund Journal and by 2011 JAT
was managing about $3 billion.
Source: http://fortune.com/2016/09/27/hedge-fund-star-thaler/

Bullion Management Group Inc. (BMG)

Uncompromised Gold Silver and Platinum Bullion

Contact: Info@BMGBullion.com| 905.474.1001 | www.BMGBullion.com

7 | Family Office Monthly

(305) 503-9077

E-Mail: Clients@FamilyOffices.com

ACCESS THOUSANDS OF FAMILY OFFICE RELATIONSHIPS

The team at the Family Office Club has put together a powerful
combination of resources for professionals looking to raise capital from
institutional and family office investors. The Institutional Capital Raising
and Conference Package includes all of our investor databases, as well
as access to our quarterly family office networking summits, educational
webinars, and 5 professional designation programs offered by the
Finance Training Society.
Whats all included in this package?
1 Multi-Family Office Database (1,000+ Firms)
2 Single Family Office Database (500+ Firms)
3 HNW Wealth Management Firms & Private Banks (925 Firms)
4 Merchant & Investment Banks (405 Firms)
5 Fund of Funds (350 Firms)
6 Institutional Investment Consultants (225 Firms)
7 Endowments & Pension Funds (650 Firms)
8 Library of Educational Webinars (More Information at http://FamilyOffices.com/Webinars)
BONUS: Two 12-Month VIP Passes to all our Family Office Summits (More information at http://WilsonConferences.com) - $5,500 Bonus Value
BONUS: Masters Certificate in Finance & Investments Training Package (More information at http://FinanceTraining.com/Masters) - $1,985 Bonus Value
Order today: http://FamilyOfficeDatabases.com/Family-Office-Database

SINGLE FAMILY OFFICE MANAGEMENT

At Single Family Office Management, we provide
hands-on assistance in launching, managing, and
improving your single family office.
If you are seeking help forming a single family
office or want expert support for your existing
family office, visit http://SingleFamilyOffices.
com or call (305) 333-1155 to speak with an
experienced single family office advisor.

8 | Family Office Monthly

(305) 503-9077

E-Mail: Clients@FamilyOffices.com

SAN FRANCISCO-BASED SINGLE FAMILY OFFICE

SEEKING INVESTMENT ANALYST
A Single Family Office based in San Ramonabout
45 minutes from downtown San Franciscois
looking for an associate to join their team with
2-3 years of experience in financial modeling,
due diligence, real estate or investment banking.
Currently seeking a candidate with a record
of academic excellence, preference is given to
candidates with graduate degrees from Wharton,
Stanford, Harvard or similar Ivy-League
Institutions.

Key Responsibilities May Include:

Help conduct due diligence on different
portfolios.
Light travel to potential investment locations
Attending meetings with head of Family
Office and assisting with Real Estate and
Investment deals.
Helping with financial modeling and valuation
projects.

Family Office experience is beneficial, but not

required; applicants with Family Office connections
will be considered first.

All interested applicants please apply below.

Candidate must be discrete, committed, technology

savvy and maintain utmost professionalism.

You can apply for this position at http://

FamilyOfficeJobs.com/Family-Office-MBA/

Attention to detail.

New Multifamily Office Launches in UK

Brexit has given a lot of firms pause but Wren
Investment Office didn't let that stop them from
launching as a new multi-family office in London.
Interestingly, the firm is backed and co-owned by Spain's
MdF Family Partners and WE Family Offices, the Miamibased family office. Around the world, we've seen
existing private banks open multifamily office divisions to
serve the ultra-wealthy and new family offices pop up like
this to focus on specific regions like the UK or even
specific occupations like family offices that serve
professional athletes and doctors.
Wren is made up of a team of wealth managers backed and co-owned by MdF Family Partners in Spain and WE Family Offices
in the US. Through Wrens partnership with MdF and WE its clients will benefit from a global investment view with local
implementation, the firm said.
The team consists of: Michael Parsons, chief executive officer; Drew McNeil, head of client relationships; Eirian Jones, head of
investments; Stephen Doherty, chief operating officer, and Christopher Kemball, independent non-executive chairman. Wren
reunites the former investment committee of Lord North Street Private Investment Office: Daniel de Fernando of MdF who will be
chief investment officer of Wren, Drew McNeil and Eirian Jones.
Source: http://www.international-adviser.com/news/1031559/wealth-manager-wren-launches-multi-familyoffice#sthash.zx0Y9IWv.dpuf
9 | Family Office Monthly