Private Equity Best Practices: Understanding Family Offices – Part 2
Understanding Family Offices – Part 2
The Role and Responsibilities of Family Offices
The roles and responsibilities of family offices differ between types of family offices, whether they are a single-family office (SFO), multi-family office (MFO), or a hybrid-family office (HFO).
Each family office can also choose their focus and what services they wish to provide and responsibilities that they may wish to take on.
When considering a family office the following are descriptions of some of the services that could be important to you and your family as you evaluate what is best for your wealth.
Comprehensive Wealth Management: Family offices can go beyond traditional financial planning and investment management. They can provide a wide range of services to support the holistic management of a family’s wealth. This could include coordinating with legal, insurance, investment, estate, business, and tax professionals to ensure a well-coordinated and integrative approach to financial planning.
Legacy Planning and Management: Family offices can play a crucial role in assisting high-net-worth families in preserving and maximizing their legacy. They can develop comprehensive wealth transfer plans that encompass various aspects, such as business interests, estate management, family trusts, philanthropy, and family governance. By collaborating with a team of advisors, family offices can help ensure the optimized management of a family’s wealth across generations.
Lifestyle Management: In addition to financial services, family offices often serve as concierges, managing various aspects of a family’s personal affairs. This can include arranging private schooling, travel arrangements, household management, and even coordinating the acquisition of luxury assets such as aircraft and yachts. By taking care of these non-financial matters, family offices can help provide a seamless and hassle-free experience for their clients.
Investment Management: Family offices can have expertise in investment portfolio management, allowing them to handle various investment opportunities. They can engage in activities such as commercial real estate transactions, private equity deals, hedge fund investments, and venture capital investments. The investment strategies of family offices can vary based on the specific goals and risk appetite of their clients.
Family Wealth Education: A crucial responsibility of family offices could be to educate younger generations on wealth management and financial stewardship. By instilling an appreciation for wealth and its responsibilities, family offices are often called on to ensure the unity and continuity of family wealth across generations. This educational aspect can help family members align their financial decisions with the family’s values and goals.
Benevolent Capital
At Benevolent Capital we have carved a niche for our investors by seamlessly blending traditional family values with cutting-edge investment strategies. Our approach is characterized by a thoughtful fusion of innovation and prudence, ensuring that every investment aligns with the long-term vision and legacy goals of our clients.
As principals we co-invest our own money in every deal we participate in, we do not charge our investors management fees, investors receive a 100% preferred gross return on their investment. After the 100% return (a 2X) the investor will receive a 70% net return with a 30% promote to the GP. This arrangement makes Benevolent Capital a trusted partner in safeguarding and growing wealth for our investors.
Benevolent Capital includes a world-class group of partners, associates and investors, and our portfolio now spans catalytic investments in venture capital, private equity, real estate development and a diverse collection of global professional soccer franchises. Our wide range of experience from managing successful companies, to completing management buyouts, acquisitions, and a wide variety of debt and equity investments totaling over $4 billion enables us to truly partner with the entrepreneurs and management teams of our portfolio companies and provide hands-on support and guidance towards realizing their full potential. Benevolent Capital has a proven track record of successful investments. Notably, our $200k investment in seed capital for Enzymatics, a biotech firm later ultimately acquired by Invitae (NASDAQ: NVTA), has yielded over $30MM in total returns for Benevolent Capital’s investors.
What sets us apart is not just our financial acumen but also our dedication to fostering meaningful relationships. Going beyond conventional investment practices, we prioritize open communication and transparency that allows us to build trust with our stakeholders, as principals we co-invest our own money in every deal we participate in making Benevolent Capital a trusted partner in safeguarding and growing wealth for our investors.
In an ever-evolving financial landscape, our expertise, coupled with Benevolent Capital’s commitment to hybrid family office investments, paints a picture of success, where financial prosperity meets enduring values.
About the Author
Brett M. Johnson, founder and CEO of Benevolent Capital, founder and partner of Fortuitous Partners, and co-founder and chairman of Rhode Island FC. He has a bachelor’s degree from Brown University and a Masters of Business Administration from the Presidential/Key Executive program at Pepperdine University. Brett is also a graduate from the Harvard Business School’s President’s Leadership Program in 2014. An active member of the Young Presidents Organization.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Always consult with a qualified financial advisor or wealth manager before making any investment decisions.
