This week, we had the pleasure of joining the Global Family Office Community in London at the 9th annual Global Family Office Conference.
We joined Principals, Next-Gens and Family Office Executives from across the world to discuss a variety of topics that concern Family Offices. Agreus’s co-founder Paul Westall was invited to sit on the first panel discussion. Drawing on the Agreus and KPMG Private Enterprise 2023 Global Family Office Compensation Benchmark report, he engaged in the discussion of current trends in the Family Office space.
There were 6 sessions that featured esteemed panellists and speakers from different professional backgrounds who provided the audience with invaluable insights. While the event was under Chatham House Rule, we thought we would share a summary of the key discussions of the day.
- The State of Play, including Family Office Trends
The speakers discussed how Family Offices can handle reputation and risk management in the new era of media. One of the speakers highlighted the importance of family storytelling in sustaining the family legacy. He suggested that constructing a story is a great way to bring cohesion to a family business and entities. Family Offices should focus on articulating stories that capture the legacy of the family and encapsulate family values and purposes.
The session was followed by a panel discussion that discuss global trends in the Family Office industry. The speakers addressed a few hot topics, including popular asset classes, changing investment trends, the use of Artificial intelligence (AI) and the global mobility of Family Offices. Drawing on data obtained in the 2023 Global Family Office Compensation Benchmark report, Agreus’s co-founder Paul Westall also shared the Family Office compensation trends in different regions and some interesting findings with the audience.
- Securing Legacy through Philanthropy
This session discussed how Family Offices may secure their legacy through Philanthropy. The speakers took turns sharing their thought-provoking philanthropic journeys. Engaging with and giving back to the community and addressing pressing social issues are great ways to participate in philanthropy. The speakers are very positive about the future of impact investment. Whilst it is still in its nascent stage, there are multiple breakthroughs with many new investment vehicles coming along.
- Around the Regulatory World
The speaker offers insights into the regulatory aspect of Family Offices. He highlighted the prevalent problem of “Accidental American”. This phrase refers to US citizens living abroad unaware of their American taxpayer status. Family Offices may also fall victim to being an “Accidental American” therefore they must be mindful of their tax status. Another interesting trend the speaker noticed is that there is now an increasing demand for immigration due to world conflicts. Particularly, non-democratic citizens often seek to immigrate to a democratic or Western country. Portugal, Malta, Australia and Cyprus are popular destinations in the West, by virtue of their favourable immigration scheme.
- What are Family Offices investing in?
This session looked into how Family Offices can enhance legacy through investment. The speakers all noted that there is a trend of increased diversification in Family Office investment portfolios. While Real Estate and Private Equity remain popular asset classes among Family Offices, the speakers have brought attention to the revolutionary changes in the investment world. Cryptocurrencies, and blockchain technology alongside other digitalised investable assets are gaining traction. As the world enters a “decentralised“era, Family Offices will have to adjust their investment strategies to keep up with the changes, one speaker suggested.
- What's new in Property?
The speakers discussed interesting trends and pain points in both commercial and residential property markets. One speaker noted that there is a generational divide between first-generation and second-generation residential homeowners. They have very different needs and investment opportunities have emerged in the residential market to serve both ends of the spectrum. The speakers have also shed light on the emergence of technology cluster cities. These clusters of tech businesses are a result of the astonishing growth of the tech sector worldwide. Cities such as San Francisco, New York City, Shang Hai and Beijing are all consider major tech clusters and are anticipated to grow even further.
The advancement in technologies, AI and virtual reality are considered major issues and were mentioned throughout the conference in different sessions, Property is no exception. One speaker explained the development of virtual properties and how it is beginning to revolutionise the property market.
- Demystifying Gen Z
This session featured an interesting discussion about dealing with Generation Z. As the largest generation in the world, Gen Z holds incredible purchasing power. This prompted corporations and organisations worldwide to research Gen Z behaviours in an attempt to understand them. The speaker compared the characteristics and preferences of all generations and advised Family Offices on how to engage their Gen Z family members properly.
Aside from the incredible discussions, the event also offered the chance to interact with like-minded peers in the community. We are looking forward to joining everyone again at next year’s conference.