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The webcast discusses the evolving landscape of family offices, particularly regarding talent acquisition, outsourcing, and generational transitions, based on a 2025 talent predictions article.
Key Points:
Outsourcing the Chief Investment Officer (CIO) Role:
- Many families, especially those newly formed after a liquidity event, opt for outsourced CIO models to access top-tier talent and share costs.
- The cost of building an in-house investment team is significant, making outsourcing attractive for families with less than a billion dollars in assets.
- The OCIO model has challenges, but boutique OCIO models and hybrid approaches with internal investment professionals are gaining traction.
Other Outsourced Services:
- Estate planning and specialized legal counsel are commonly outsourced.
- General counsel roles are increasingly being insourced for initial legal assessments and coordination.
- The decision to outsource depends on the family’s priorities, budget, and values.
Virtual Family Offices:
- Virtual family offices are becoming more common, especially among next-generation members.
- They offer cost savings and flexibility, but require a strong “expert generalist” to coordinate external providers.
- Technology is helping to allow for a more virtual family office.
Compensation:
- CIO compensation varies widely based on the role’s scope and complexity.
- Factors like co-investment and carried interest also influence total compensation.
Next-Generation Involvement:
- Next-generation family members are taking more visible roles in family offices.
- This increased visibility raises security concerns, including cyber threats and physical safety.
- It is very important to make sure that the values of the family are passed down to the next generation.
Succession Planning:
- Early and frequent communication of family values is crucial for successful wealth and value transfer.
- Creating opportunities for storytelling and shared experiences helps instill family values.
- The family should have a trusted person, that is only concerned with the families best interest, to over see the family office.
Cyber Security:
- Cyber security is a growing threat to family offices, and should be a high priority.
- It is very important to have a cyber security plan in place.
About Mack International LLC
Mack International is the premier boutique retained executive search and strategic management/human capital consulting firm serving national and international clients in the family office, family business enterprise and the wealth management industries on a national and international basis. Founded in 2002, the firm has achieved an exceptional track record of success as evidenced by its unmatched industry expertise, in-depth market knowledge and unparalleled track record of success. Founder and President, Linda C. Mack has established proprietary methodologies such as the Mack 360© and is credited for having coined the term “expert generalist” in the industry.
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Policy and Taxation Group is the Voice for Family Offices and Successful Individuals in Washington, DC focused exclusively on the critical tax and economic policies that impact them.
Since 1995, Policy and Taxation Group has been the leading advocacy group working to reduce and eliminate estate tax, gift tax, and generation skipping transfer tax while blocking increased income tax and capital gains taxes, the creation of a wealth tax, and other hostile tax policies that punish hardworking taxpayers and success.
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