The entire world has been forced to adapt over the last 12 months and hiring has been no exception.
As Family Offices look to gain greater control over their investments, there has been a greater demand for Private Equity professionals, hired to deploy capital directly and manage rapidly expanding investment portfolios.
The demand for Analysts has also increased away from Investments to manage the likes of data aggregation, analytics and reporting as Family Offices go digital and a consequence of the newly interconnected world is the surge in demand for Executive Assistants, required to integrate the indistinct line of Family and Office.
But the hiring effort doesn’t stop there. In the last six months we have seen a proliferation in demand for in-house Legal Professionals with transactional experience, to oversee everything from these specific private investments to Initial Public Offerings (IPOs).
2020 witnessed the highest IPO capital raising activity in more than a decade, raising $331BN across 1,591 listings. Many of these listings belong to Family Businesses, keen on creating robust corporate governance structures and leaning on Family Offices as the solution.
IPOs have become an increasingly popular way for UHNW individuals to generate wealth, diversify their portfolios and establish Family Offices to manage both. The drive has also led to a surge in demand for legal professionals to administer the heightened regulation.
With the increased need for Family Office Legal Counsel, we thought we would uncover where the majority of these professionals sit – in-house, outsourced or a combination of both.
Perhaps unsurprisingly, the majority of Family Offices say it’s the latter. 51% of our Family Office Network say they use a combination of in-house and outsourced legal professionals followed by 26% which exclusively rely on outsourced providers and 23% opting to home legal professionals within their Family Office.
Family Offices are established to preserve and generate extraordinary wealth but they are also established by HNW Individuals, desperate for autonomy and control. In-house legal professionals can undoubtedly facilitate this but are they enough?
Family Offices are regulated entities that require structuring, compliance and planning. They require legal advice to assist with anything from financial authorisation and risk management to staff incentives and remuneration.
As Family Offices look to diversify their investment portfolios, explore new opportunities, expand and even take their operating businesses public, legal advice has never been more necessary but is it something in-house legal professionals can manage alone?
We will be continuing this debate with the help of in-house legal counsel and Family Office Law firms in the coming weeks, to take part in the conversation, please get in touch. In the meantime, download our quick guide to Family Office Legal Compensation here.