View this email in your browser >
facebook twitter instagram youtube 
Thank you to Pathstone, the modern family office, for this report.
Working closely with SFOs is an important segment of Pathstone’s business and has allowed us the opportunity to understand several common and interrelated trends better. Below is an outline of the main trends that we continue to observe as we work with new and existing SFOs. Several trends overlap, and we have noticed that best practices include thoughtful consideration of how integrating these decisions creates the most successful path forward.

There is a demographic shift occurring within the leadership of SFOs. Many are led by an aging family member or a trusted professional that has worked with the family for decades. This transition raises a series of critical decisions. For example, analyzing the family's current service requirements and their vision for what these may look like in the future. Is the vision to maintain the SFO generationally, and will the costs outweigh the benefits? Clarity on these macro-objectives will help inform the family of a potential new leader's necessary experience and cultural alignment.

Concerns about high taxes are top of mind. Questions include what strategies should be considered to create the most tax-efficient results, including analyzing if the SFO has the right fact pattern to create a for-profit management company.

SFOs have historically utilized third-party software to assist with accounting, investment performance reporting, bill pay, middle office controls, and investment administration. Unfortunately, these software packages typically do not synch with each other. Therefore, the SFO is forced to build internal controls and solutions to create customized deliverables for the family. Integrated solutions now exist and are proven to address this challenge.

Most SFOs are serving multiple generations. The younger generation is asking for an engagement model that is quite different from the traditional one. They are asking for digital delivery of timely information and instant access to data when needed, yet still would like an intimate, customized service experience.

Active managers, inclusive of alternatives like hedge funds, have been challenged to keep up with relevant benchmarks over the last decade. As a result, SFOs have pivoted and started to allocate larger percentages to private investments, both private equity and real estate.
Read the full article, "2022 Family Office Trends", from Pathstone, the modern family office.
About Pathstone
Pathstone is an independently operated partner-owned advisory firm, offering families, family offices and select nonprofit institutions comprehensive family office services and customized investment advice. Pathstone’s objective is to help clients create, manage and preserve wealth across generations. Pathstone integrates smart innovative programs with its traditional family office services to provide solutions that withstand the test of time.
Stay safe and healthy,
Pat Soldano
[email protected]
712 H Street NE Suite 1091
Washington DC 20002
(202) 681-8365
We hope you’ve enjoyed this article. While you’re here, we have a small favor to ask…

As we prepare for what promises to be a pivotal year for America, we’re asking you to consider becoming a supporter.

The need for fact-based reporting of issues important to multi generational businesses and protecting a lifetime of savings has never been greater. Now more than ever, multi generational businesses and family businesses are under fire. That’s why Policy and Taxation Group is passionately working to increase the awareness of issues important to generationally-owned family businesses built on hard work, while continuing to strengthen our presence on Capitol Hill.

About Policy and Taxation Group
Policy and Taxation Group is your voice in Washington on economic freedom. We advocate for policies that allow American families to fully enjoy the economic liberties and benefits of a robust free market unique to our nation. For over 25 years, we have been the loudest voice in the nation’s capital on eliminating the death tax. This ill-conceived tax has a destructive impact on families, family businesses, job creation, and the national economy.
Have questions or would like more information about becoming a Supporter or donating? Please contact John Marino at [email protected].
facebook twitter instagram youtube