Generational changes Global mobility. Technology transformation. Farnoush Farsiar writes for EU Today that these are only a handful of major changes that will affect family offices and could fundamentally alter their operating structures.

Family offices cater to a younger, tech-savvy, and mobile generation more often. The financial crisis and democratisation of trading through online tools have created a new generation of clients, regardless of age and interests, more interested in their investments and want to have more knowledge and involvement in their investments, and have lost the old fashioned desire for discretionary portfolios, which are managed with arm’s length.

These changes, which occur in a period of unprecedented economic and political instability will bring the end of the traditional fee-based family office model. Offices that try to keep their traditional methods may discover that they are not being used by those they were created to help. twitter.com/BrexitCentral/status/1140499332128530432 Instead, they must adapt and adopt a more creative approach to investment management, in order to create a true worth proposition for UHNWIs.

While the scope and size of family offices can be different, it’s important that they focus on flexibility and streamlining over being experts in everything. The most efficient service for customers will be offered by a smaller team of advisors who are able to swiftly implement new technologies and also bring in external experts when required. This will mean the blurring between family office and private banking. Companies that succeed will be able to maintain the trust and respect of family offices while staying ahead of the curve in technology adoption and the sourcing of deals.

The capability to utilize traditional, reputation-based, and network-based methods for deal sourcing will result in successful outcomes. Farnoush Farsiar However, you can make use of online tools to discover opportunities and deals. Wealth managers can make use of online deal sourcing platforms to identify opportunities and deals. They’re much simpler than large, cumbersome banks that are entangled in big-firm bureaucracy. They allow dealmakers to review and access a huge variety of deals at the same time, which is a significant saving of time and money.

Other services online that have changed the way family offices communicate with their customers include dashboards, like Wealthica, which automatically consolidate investment portfolios from various sources, bringing clients into daily contact with their investments. It’s a far cry from the days of wealth managers who offered only periodic information on the status of their customers’ investments.

Of course they are only tools – the methods that wealth managers can increase their efficiency and speed at the way they work. http://www.privatebankerinternational.com/analysis/business-profile-plato-capital/ The strategy which underpins their investments is ultimately the most crucial factor. It is important to combine the old and the new. For instance you should continue searching for real estate opportunities as well as looking at investments in new areas like climate science or food security. Impact investing is certainly „arrived in the family office industry. According to the UBS Global Family Office Report 2018 revealed that one-third of family members are engaged in impact investing. Many anticipate taking part in the coming years. There are a few issues in this area, such as issues with measuring impact or conducting due diligence. brexitcentral.com/author/farnoush-farsiar/ However the next generation of UHNWIs and HNWIs are likely to expect a family office to be able identify and secure these investments. Plato Capital is my boutique investment bank. Plato Capital draws from the expertise of its founders, who have been employed in major banks as well as the tech sector. http://www.anochords.org/farnoush-farsiar-why-are-so-few-women-in-finance/ Plato Capital provides investment advice that focuses on the entrepreneurial. Our network and personal knowledge within the local community allow our clients to manage risk effectively and maximize their capital return.

Blending the old with the new, while adjusting to the needs of the young generation and being prepared to be risk-averse with their own structures and techniques, wealth managers of all types can be successful and relevant in difficult times. Farnoush Farsiar