Succession may be the most difficult issue facing multigenerational families. According to studies, most single-family offices do not have succession plans in place.
Investment Committee Series
Because of our background in financial publishing, we’re probably not the norm when it comes to family offices… But even so, given my family’s limited experience running an investment committee, I would say that our biggest risks are a lack of professionalism and our lack of serious focus on the family portfolio…
The investment committee is a group of family members that manages your family’s investment portfolio. Its mandate is to protect the family wealth and manage the family wealth portfolio. The investment committee maintains a big-picture outlook of which market segments are most likely to perform well over the ultra-long term and oversees all strategic asset allocation decisions.
At a family office meeting in London a few years ago, the principal of a billionaire Scottish family office gave a speech about investment committee rules.
The No. 1 lesson my Dad taught me and my siblings about investing was to be skeptical. This also proved to be very salient advice for preparing us to be on the Family Investment Committee.
Creating a multigenerational-family legacy comes with a lot of risk. That’s because “old money” has to withstand the test of time.