FINVIA
FINVIA
Podcast
29.2.2024
In the general definition, a family office is a service provider that manages and controls the largely private wealth assets of its clients or parts thereof. The remit of a family office is much broader than that of an ordinary wealth manager. In addition to investment advice, allocation and controlling, it also includes topics such as succession strategies, company formation, family governance and many more.
The concept of the modern "family office" is based on the "House of Morgan" founded by J.P. Morgan or the family office of the Rockefeller family in the late 19th century, which was exclusively responsible for maintaining and managing the wealth of a particular family.
Today we distinguish between two different categories: Single Family Offices and Multi Family Offices.
The first correspond to the classic definition. In other words, these are companies that are firmly linked to a particular family and associated with their interests. This variant generally makes sense for total assets of around EUR 100 million or more.
In contrast, multi-family offices are more present. Although they offer a very similar range of services, they make this available to a broader target group. They are not only committed to a single family, but also look after and manage several mandates. Multi-family offices can therefore be used from wealth of 50 million euros. Modern providers such as FINVIA even enable these services in the single-digit and lower double-digit million range.
Depending on the type and focus, family offices cover a wide range of services that encompass far more than just capital investment.
Together with asset managers, they support and develop a strategic objective for the portfolio, a so-called "strategic asset allocation" (SAA).
In the context of wealth management this includes the development and implementation of specific investment strategies for liquid and illiquid assets as well as the selection of suitable investment vehicles. These include, for example, shares, bonds, alternative investments such as private equity or real estate. In addition, the family office uses regular controlling to ensure that a central overview of wealth is maintained at all times and provides its clients with advice on all decisions.
At the same time, tax planning and legal matters play a key role in the family office's remit, in collaboration with specialist mandate holders. While helping its clients to take advantage of potential benefits, it guides them safely through legal requirements (with the help of external partners if necessary) and ensures the necessary compliance throughout the entire management process.
Risk management is also relevant. Here, the family office is involved in identifying and solving any challenges, be it in connection with investments, insurance or other financial matters.
Although the Multi Family Office manages a broad spectrum of different wealth , families are still a significant part of its client base. Therefore, in addition to wealth management , topics such as estate, inheritance and succession strategies as well as philanthropic matters are also on the agenda. The exact scope of these tasks varies according to the individual requirements of the clients. Many of them, for example, aim to securely transfer real estate, company management or the wealth itself to the next generation.
Single family offices in particular clearly stand out from traditional managers, as they exclusively manage the entire capital of a family - in contrast to asset managers who manage the investments of several clients and often only manage parts of their wealth . However, there are also significant differences in contrast to multi-family offices.
For example, an asset manager normally concentrates mainly on liquid investments such as shares or bonds. Accordingly, they only manage part of their clients' capital. Tasks such as portfolio controlling also do not fall within their area of activity.
As the family office is often responsible for managing all assets, data controlling is just as much a part of its remit as manager selection for all investment classes, including alternative ones. It acts completely autonomously, as the company receives no commission from the providers it accepts into its network. The resulting particularly high level of transparency and ability to act in the interests of its clients is an important reason for the family offices' special position of trust.
First of all, it should be emphasized that a bank and a family office are two fundamentally different concepts that differ significantly from one another. For example, the former rarely takes over the management of the entire wealth, but is largely entrusted with partial investments. There are various reasons for this. On the one hand, investors strive for diversification, which is why they invest in different investment areas in order to create a broader foundation. On the other hand, the often limited choice of products means that they resort to several providers. At the same time, banks rarely offer services that go beyond traditional banking and usually do not provide an overview of all allocations made. Especially if these originate from other service providers, they lack the necessary data basis for this.
In contrast, a family office operates independently on the market and is not tied to specific product portfolios. This enables them to reliably implement even more complex portfolios, for example in the area of alternative investments, and to guarantee a diversified investment strategy as the sole point of contact. Furthermore, it aggregates all data on the assets - regardless of where they are invested - and thus provides a well-founded overall view and transparency. This holistic approach makes its services particularly attractive to investors who are looking for a reliable overall strategy that takes all aspects of their wealth into account.
As a rule, the clientele of family offices comprises private asset owners with total assets of several million, although there is no upper limit to the exact amount.
In line with the term, the single family office is limited exclusively to looking after a single family, while multi-family offices have a broader focus. Their services are aimed at families as well as individuals, including top athletes or celebrities, who are happy to make use of their wealth management services. However, exceptions are also possible. For example, foundations or other organizations may turn to them.
As a rule of thumb, the Multi Family Office is of interest to anyone with a certain amount of share capital. The exact entry thresholds vary from company to company and depending on the service required.
No general answer is possible here, as different providers vary in size and focus. Accordingly, there may also be different departments, although some core competencies should be covered.
Investment teams , for example, make up a significant part of this. They determine the investment strategy, weigh up the risks and take care of the long-term portfolio orientation. To ensure that we at FINVIA, for example, have the necessary knowledge and are completely free to form our own opinions, we employ our own experts for each asset class. Whether for liquid assets or alternative investments such as private equity, private debt or venture capital - they scan the market and select the best offers for our clients in a complex process.
Another important part is controlling. Here, employees continuously monitor all strategies and data to ensure that the managed portfolios always have the necessary security and a sound basis for decision-making.
When it comes to security, compliance should also be mentioned. It is responsible for ensuring and monitoring compliance with all relevant laws, regulations and internal guidelines.
Family officers occupy one of the most important positions. They are the clients' personal contacts, are in direct contact with them and connect them and their wealth with the company's accumulated expertise and all its possibilities. In doing so, they build up a trusting relationship that usually lasts for many years.
As we attach great importance to digital solutions, professional IT is also an essential part of FINVIA's corporate culture.
In addition to organization, administration and management as well as all associated tasks, the family office plays a much more important role.
It acts not only as a pure asset manager, but also as a reliable partner for all areas of life. More than the next investment and the best options, it is about identifying the individual's personal goal and developing a strategy to achieve it in the long term. Wealthy individuals who make use of this service not only value exceptional expertise, but above all trust that will carry them safely through the turbulence of the financial market and all related areas for a long time to come.
In order to offer a comprehensive wealth management , family offices provide a wide range of investment opportunities that often exceed the number and quality of those offered by conventional banks.
These include liquid assets such as equities, bonds or commodities as well as real estate - acquired directly or held via funds - as well as alternative investments. These illiquid options include private equity, venture capital, private debt, impact investing, hedge funds and infrastructure investments.
The exact range of these investment products may vary depending on the family office.
It is also difficult to make a blanket statement regarding costs. These initially depend on whether families invest via a single family office, which they set up themselves, or via one of the existing multi-family offices. As the latter take on the management of several portfolios and therefore have a wider range of clients at their disposal, the individual will therefore bear less of the costs for support.
The further costs incurred also depend on the scope of the mandate and the fee model of the chosen provider as well as the complexity of wealth. It is important that these approaches are well communicated and made available to clients in a transparent manner.
There are many reasons for using a family office to manage, control and monitor your own wealth and investments.
Their expertise is a fundamental advantage. Not only do they bring together various experts from different fields, they often have many years of experience in their field. This offers customers a high degree of security.
This is also supported by the fact that family offices do not accept commissions from fund managers and external service providers with whom they cooperate. Instead, they finance themselves exclusively from the fees they receive from their clients. This automatically encourages them to offer only the highest quality investment opportunities in order to guarantee their satisfaction.
At the same time, their range of services at wealth management is usually much broader than that of other providers. Investment, controlling, strategy development - they offer a holistic concept with a high degree of individualization. Advantages that are further enhanced by the establishment of a single family office.
If you are looking for the right service provider for your wealth, you should think carefully about your decision and inform yourself well. Assuming that you do not want to set up a single family office yourself, the following tips relate to the selection of freely available providers.
The first contact is often made through recommendations. So if you know someone who already uses similar services, ask about their experience. If you do not have a recommendation, invest the necessary time in thorough research. Awards from reputable providers can provide an initial point of reference. The Handelsblatt Elite Report, for example, recognizes the "Elite of Asset Managers" once a year. This title is awarded according to strict criteria and has been awarded to FINVIA for four years.
Investigate the activities of potential providers and compare them with each other. Don't be afraid to consider the option of a non-binding consultation. This will allow you to ask all your questions and make an informed decision at the end. Remember: as the asset owner, you are in control and are free to choose who you personally consider to be competent and who meets your requirements.
Basically, a family office is worthwhile as soon as your wealth has reached a certain value. With FINVIA for example, entry is already possible in the single to double-digit million range.
The decision also depends on the areas in which you require support. For example, families can benefit from inheritance and succession planning services in the same way as investors looking for new opportunities or people who need help managing their real estate. Due to the high level of individualization, family offices offer both comprehensive services from the planning of an overarching asset strategy to specialized services in areas such as the allocation of a pure private equity portfolio with only a portion of the wealth.
In general, you should consider working with us if you are wealthy and have specific goals that require expert support.
Even in this context, a blanket answer is hardly possible.
If you want to set up a single family office for wealth management and management, you are looking at a capital range of one hundred million euros or more.
If, on the other hand, you would like to use the services of a multi-family office, the limits are much lower - usually around 50 million euros. Nevertheless, providers usually set their own requirements for accepting a mandate. At FINVIA, for example, the entry limit is in the single to double-digit million euro range.
A family office not only represents the interests of the family in purely financial terms, but can also optimally combine other aspects in relation to the succession strategies family business.
In this way, the right course can be set for cross-generational navigation and protection right from the start of the strategy development and throughout the entire wealth management process. This includes the planning of future inheritances and liquidity management as well as the coordination of external advisors who facilitate the efficient transfer of the family estate.
However, it is not only the transfer of wealth that is relevant. Other facets such as transparent communication within the family, the formation and preparation of the next generation or the implementation of their own governance structures are also part of their area of activity.
Due to their high degree of specialization, family offices are usually very experienced with all the challenges of family and wealth planning. This puts them in a position to avoid any conflicts and develop sustainable solutions that benefit all parties involved in the long term.
In fact, philanthropic goals are close to many people's hearts - accordingly, many investors would like to invest some of their capital for this purpose. However, this often raises the question of how they can best achieve this and, above all, how they can ensure that their investment is actually used for the intended purpose. This is precisely where family offices become relevant.
First of all, they help with strategy development. They collect all the information on the family's values and requirements. They then identify and review implementation options and point out investment opportunities that match these. They therefore take on the role of personal advisors. They can also provide support if clients wish to take independent action and set up a foundation, for example.
Resource planning is also one of the tasks of family offices. They keep an eye on the overall situation of wealth always in focus and ensure that it is optimally allocated to individual asset classes. In order to keep this allocation up to date, they are also responsible for controlling and reporting. This also means that they monitor whether the selected providers remain true to their purpose and achieve the philanthropic added value that they promised.
Money is a popular topic of dispute - within a family just as much as anywhere else. The first goal of a family office is therefore to avoid conflicts as far as possible. To achieve this, transparent communication is paramount. To this end, it initially serves as a point of contact for all family members, answers questions about wealth and all associated structures and offers its help. If disagreements do arise, this neutral partner takes over the mediation and mediates between different interests.
However, to avoid this from the outset, the family office can be called in to draw up its own governance, which clearly defines responsibilities. This way, all parties involved know their roles, are always informed about the overall situation and have a fixed point of contact for their concerns.
In addition to the investment strategy itself, every family office also helps its clients to optimize their tax burden. On the one hand, this is about complying with legal requirements correctly and thus protecting them from the associated conflicts. On the other hand, there are many areas in which precise planning can open up previously unused advantages and new opportunities. These can relate to questions such as: In which structure does it make sense to implement certain asset classes, at private individual level or via your own company? How do options in Germany differ from international options and which options should best be used where? What regulations need to be observed at succession strategies ? The core function of the family office in the context of tax planning and optimization is that of a coordinator. The focus of the activity is on the involvement, communication and organization of specialist mandate holders such as tax advisors or auditors.
At the same time, wealthy individuals benefit greatly in this aspect from detailed controlling of the family offices. The data provided facilitates tax law support by external tax advisors and other parties involved.
If you want to arrange the succession for your company, you will find a competent partner in the family office. They can provide support, particularly with coordination and planning, and can lead a secure and smooth process.
More specifically, this includes identifying and developing suitable successors within the family or external management solutions, valuing the business, implementing governance structures and communicating with each family tribe to ensure a smooth handover. The family office can also consider tax and legal aspects and act as an intermediary with the appropriate external advisors to ensure the succession is efficient and smooth, while safeguarding the family's long-term goals and the financial stability of the business.
Wherever returns are generated, risks always play a role. This is why appropriate preventive measures are part of the toolkit of all family offices. At FINVIA, for example, we work with detailed forecasting models in the area of investments. In concrete terms, this means that we combine technically supported calculations with the specialist know-how and many years of experience of our experts. In this way, we continuously produce precise analyses of potential developments on the capital market.
Another factor in reducing risk is the permanent monitoring of all allocations and their comparison with the aforementioned forecasts. If we identify new options or potential distortions, we contact our clients directly and ensure that their portfolios are adjusted accordingly.
Particularly in the area of alternative investments, we place great value on the intensive quality checks of the managers and funds that we select. Our dedicated team is entrusted with this task. Our experts take a lot of time - often over several months - are in direct contact with managers and check every detail before we include them in our range.
The family office has long since gone beyond the mere wealth management . In recent years in particular, private investors have become more demanding and services have become correspondingly more individualized. At the same time, the investment universe and the associated asset allocation options have grown considerably.
These are trends that will continue to develop in the future. On the one hand, expertise and market orientation are more important than ever - services that family offices have long offered thanks to their high level of specialization. On the other hand, personalization demands more than just trusting contact with the contact person. The implementation of digital solutions also plays a major role. Asset owners are demanding more freedom of choice, are taking the initiative themselves more often, want to keep an unrestricted overview of their portfolio and subscribe to funds independently.
To make this possible, FINVIA has relied on specially developed digital tools since its foundation, for example, which give you precisely this control - always with the security of being able to fall back on our knowledge and our employees at any time.
FINVIA
29.2.2024
Marc Sonnleitner
What is a family office? How much does a mandate cost? And when is a mandate even appropriate? In this article, FINVIA co-founder and Chief Legal Officer Marc Sonnleitner answers the 21 most important questions about the family office and its various areas of responsibility.
In the general definition, a family office is a service provider that manages and controls the largely private wealth assets of its clients or parts thereof. The remit of a family office is much broader than that of an ordinary wealth manager. In addition to investment advice, allocation and controlling, it also includes topics such as succession strategies, company formation, family governance and many more.
The concept of the modern "family office" is based on the "House of Morgan" founded by J.P. Morgan or the family office of the Rockefeller family in the late 19th century, which was exclusively responsible for maintaining and managing the wealth of a particular family.
Today we distinguish between two different categories: Single Family Offices and Multi Family Offices.
The first correspond to the classic definition. In other words, these are companies that are firmly linked to a particular family and associated with their interests. This variant generally makes sense for total assets of around EUR 100 million or more.
In contrast, multi-family offices are more present. Although they offer a very similar range of services, they make this available to a broader target group. They are not only committed to a single family, but also look after and manage several mandates. Multi-family offices can therefore be used from wealth of 50 million euros. Modern providers such as FINVIA even enable these services in the single-digit and lower double-digit million range.
Depending on the type and focus, family offices cover a wide range of services that encompass far more than just capital investment.
Together with asset managers, they support and develop a strategic objective for the portfolio, a so-called "strategic asset allocation" (SAA).
In the context of wealth management this includes the development and implementation of specific investment strategies for liquid and illiquid assets as well as the selection of suitable investment vehicles. These include, for example, shares, bonds, alternative investments such as private equity or real estate. In addition, the family office uses regular controlling to ensure that a central overview of wealth is maintained at all times and provides its clients with advice on all decisions.
At the same time, tax planning and legal matters play a key role in the family office's remit, in collaboration with specialist mandate holders. While helping its clients to take advantage of potential benefits, it guides them safely through legal requirements (with the help of external partners if necessary) and ensures the necessary compliance throughout the entire management process.
Risk management is also relevant. Here, the family office is involved in identifying and solving any challenges, be it in connection with investments, insurance or other financial matters.
Although the Multi Family Office manages a broad spectrum of different wealth , families are still a significant part of its client base. Therefore, in addition to wealth management , topics such as estate, inheritance and succession strategies as well as philanthropic matters are also on the agenda. The exact scope of these tasks varies according to the individual requirements of the clients. Many of them, for example, aim to securely transfer real estate, company management or the wealth itself to the next generation.
Single family offices in particular clearly stand out from traditional managers, as they exclusively manage the entire capital of a family - in contrast to asset managers who manage the investments of several clients and often only manage parts of their wealth . However, there are also significant differences in contrast to multi-family offices.
For example, an asset manager normally concentrates mainly on liquid investments such as shares or bonds. Accordingly, they only manage part of their clients' capital. Tasks such as portfolio controlling also do not fall within their area of activity.
As the family office is often responsible for managing all assets, data controlling is just as much a part of its remit as manager selection for all investment classes, including alternative ones. It acts completely autonomously, as the company receives no commission from the providers it accepts into its network. The resulting particularly high level of transparency and ability to act in the interests of its clients is an important reason for the family offices' special position of trust.
First of all, it should be emphasized that a bank and a family office are two fundamentally different concepts that differ significantly from one another. For example, the former rarely takes over the management of the entire wealth, but is largely entrusted with partial investments. There are various reasons for this. On the one hand, investors strive for diversification, which is why they invest in different investment areas in order to create a broader foundation. On the other hand, the often limited choice of products means that they resort to several providers. At the same time, banks rarely offer services that go beyond traditional banking and usually do not provide an overview of all allocations made. Especially if these originate from other service providers, they lack the necessary data basis for this.
In contrast, a family office operates independently on the market and is not tied to specific product portfolios. This enables them to reliably implement even more complex portfolios, for example in the area of alternative investments, and to guarantee a diversified investment strategy as the sole point of contact. Furthermore, it aggregates all data on the assets - regardless of where they are invested - and thus provides a well-founded overall view and transparency. This holistic approach makes its services particularly attractive to investors who are looking for a reliable overall strategy that takes all aspects of their wealth into account.
As a rule, the clientele of family offices comprises private asset owners with total assets of several million, although there is no upper limit to the exact amount.
In line with the term, the single family office is limited exclusively to looking after a single family, while multi-family offices have a broader focus. Their services are aimed at families as well as individuals, including top athletes or celebrities, who are happy to make use of their wealth management services. However, exceptions are also possible. For example, foundations or other organizations may turn to them.
As a rule of thumb, the Multi Family Office is of interest to anyone with a certain amount of share capital. The exact entry thresholds vary from company to company and depending on the service required.
No general answer is possible here, as different providers vary in size and focus. Accordingly, there may also be different departments, although some core competencies should be covered.
Investment teams , for example, make up a significant part of this. They determine the investment strategy, weigh up the risks and take care of the long-term portfolio orientation. To ensure that we at FINVIA, for example, have the necessary knowledge and are completely free to form our own opinions, we employ our own experts for each asset class. Whether for liquid assets or alternative investments such as private equity, private debt or venture capital - they scan the market and select the best offers for our clients in a complex process.
Another important part is controlling. Here, employees continuously monitor all strategies and data to ensure that the managed portfolios always have the necessary security and a sound basis for decision-making.
When it comes to security, compliance should also be mentioned. It is responsible for ensuring and monitoring compliance with all relevant laws, regulations and internal guidelines.
Family officers occupy one of the most important positions. They are the clients' personal contacts, are in direct contact with them and connect them and their wealth with the company's accumulated expertise and all its possibilities. In doing so, they build up a trusting relationship that usually lasts for many years.
As we attach great importance to digital solutions, professional IT is also an essential part of FINVIA's corporate culture.
In addition to organization, administration and management as well as all associated tasks, the family office plays a much more important role.
It acts not only as a pure asset manager, but also as a reliable partner for all areas of life. More than the next investment and the best options, it is about identifying the individual's personal goal and developing a strategy to achieve it in the long term. Wealthy individuals who make use of this service not only value exceptional expertise, but above all trust that will carry them safely through the turbulence of the financial market and all related areas for a long time to come.
In order to offer a comprehensive wealth management , family offices provide a wide range of investment opportunities that often exceed the number and quality of those offered by conventional banks.
These include liquid assets such as equities, bonds or commodities as well as real estate - acquired directly or held via funds - as well as alternative investments. These illiquid options include private equity, venture capital, private debt, impact investing, hedge funds and infrastructure investments.
The exact range of these investment products may vary depending on the family office.
It is also difficult to make a blanket statement regarding costs. These initially depend on whether families invest via a single family office, which they set up themselves, or via one of the existing multi-family offices. As the latter take on the management of several portfolios and therefore have a wider range of clients at their disposal, the individual will therefore bear less of the costs for support.
The further costs incurred also depend on the scope of the mandate and the fee model of the chosen provider as well as the complexity of wealth. It is important that these approaches are well communicated and made available to clients in a transparent manner.
There are many reasons for using a family office to manage, control and monitor your own wealth and investments.
Their expertise is a fundamental advantage. Not only do they bring together various experts from different fields, they often have many years of experience in their field. This offers customers a high degree of security.
This is also supported by the fact that family offices do not accept commissions from fund managers and external service providers with whom they cooperate. Instead, they finance themselves exclusively from the fees they receive from their clients. This automatically encourages them to offer only the highest quality investment opportunities in order to guarantee their satisfaction.
At the same time, their range of services at wealth management is usually much broader than that of other providers. Investment, controlling, strategy development - they offer a holistic concept with a high degree of individualization. Advantages that are further enhanced by the establishment of a single family office.
If you are looking for the right service provider for your wealth, you should think carefully about your decision and inform yourself well. Assuming that you do not want to set up a single family office yourself, the following tips relate to the selection of freely available providers.
The first contact is often made through recommendations. So if you know someone who already uses similar services, ask about their experience. If you do not have a recommendation, invest the necessary time in thorough research. Awards from reputable providers can provide an initial point of reference. The Handelsblatt Elite Report, for example, recognizes the "Elite of Asset Managers" once a year. This title is awarded according to strict criteria and has been awarded to FINVIA for four years.
Investigate the activities of potential providers and compare them with each other. Don't be afraid to consider the option of a non-binding consultation. This will allow you to ask all your questions and make an informed decision at the end. Remember: as the asset owner, you are in control and are free to choose who you personally consider to be competent and who meets your requirements.
Basically, a family office is worthwhile as soon as your wealth has reached a certain value. With FINVIA for example, entry is already possible in the single to double-digit million range.
The decision also depends on the areas in which you require support. For example, families can benefit from inheritance and succession planning services in the same way as investors looking for new opportunities or people who need help managing their real estate. Due to the high level of individualization, family offices offer both comprehensive services from the planning of an overarching asset strategy to specialized services in areas such as the allocation of a pure private equity portfolio with only a portion of the wealth.
In general, you should consider working with us if you are wealthy and have specific goals that require expert support.
Even in this context, a blanket answer is hardly possible.
If you want to set up a single family office for wealth management and management, you are looking at a capital range of one hundred million euros or more.
If, on the other hand, you would like to use the services of a multi-family office, the limits are much lower - usually around 50 million euros. Nevertheless, providers usually set their own requirements for accepting a mandate. At FINVIA, for example, the entry limit is in the single to double-digit million euro range.
A family office not only represents the interests of the family in purely financial terms, but can also optimally combine other aspects in relation to the succession strategies family business.
In this way, the right course can be set for cross-generational navigation and protection right from the start of the strategy development and throughout the entire wealth management process. This includes the planning of future inheritances and liquidity management as well as the coordination of external advisors who facilitate the efficient transfer of the family estate.
However, it is not only the transfer of wealth that is relevant. Other facets such as transparent communication within the family, the formation and preparation of the next generation or the implementation of their own governance structures are also part of their area of activity.
Due to their high degree of specialization, family offices are usually very experienced with all the challenges of family and wealth planning. This puts them in a position to avoid any conflicts and develop sustainable solutions that benefit all parties involved in the long term.
In fact, philanthropic goals are close to many people's hearts - accordingly, many investors would like to invest some of their capital for this purpose. However, this often raises the question of how they can best achieve this and, above all, how they can ensure that their investment is actually used for the intended purpose. This is precisely where family offices become relevant.
First of all, they help with strategy development. They collect all the information on the family's values and requirements. They then identify and review implementation options and point out investment opportunities that match these. They therefore take on the role of personal advisors. They can also provide support if clients wish to take independent action and set up a foundation, for example.
Resource planning is also one of the tasks of family offices. They keep an eye on the overall situation of wealth always in focus and ensure that it is optimally allocated to individual asset classes. In order to keep this allocation up to date, they are also responsible for controlling and reporting. This also means that they monitor whether the selected providers remain true to their purpose and achieve the philanthropic added value that they promised.
Money is a popular topic of dispute - within a family just as much as anywhere else. The first goal of a family office is therefore to avoid conflicts as far as possible. To achieve this, transparent communication is paramount. To this end, it initially serves as a point of contact for all family members, answers questions about wealth and all associated structures and offers its help. If disagreements do arise, this neutral partner takes over the mediation and mediates between different interests.
However, to avoid this from the outset, the family office can be called in to draw up its own governance, which clearly defines responsibilities. This way, all parties involved know their roles, are always informed about the overall situation and have a fixed point of contact for their concerns.
In addition to the investment strategy itself, every family office also helps its clients to optimize their tax burden. On the one hand, this is about complying with legal requirements correctly and thus protecting them from the associated conflicts. On the other hand, there are many areas in which precise planning can open up previously unused advantages and new opportunities. These can relate to questions such as: In which structure does it make sense to implement certain asset classes, at private individual level or via your own company? How do options in Germany differ from international options and which options should best be used where? What regulations need to be observed at succession strategies ? The core function of the family office in the context of tax planning and optimization is that of a coordinator. The focus of the activity is on the involvement, communication and organization of specialist mandate holders such as tax advisors or auditors.
At the same time, wealthy individuals benefit greatly in this aspect from detailed controlling of the family offices. The data provided facilitates tax law support by external tax advisors and other parties involved.
If you want to arrange the succession for your company, you will find a competent partner in the family office. They can provide support, particularly with coordination and planning, and can lead a secure and smooth process.
More specifically, this includes identifying and developing suitable successors within the family or external management solutions, valuing the business, implementing governance structures and communicating with each family tribe to ensure a smooth handover. The family office can also consider tax and legal aspects and act as an intermediary with the appropriate external advisors to ensure the succession is efficient and smooth, while safeguarding the family's long-term goals and the financial stability of the business.
Wherever returns are generated, risks always play a role. This is why appropriate preventive measures are part of the toolkit of all family offices. At FINVIA, for example, we work with detailed forecasting models in the area of investments. In concrete terms, this means that we combine technically supported calculations with the specialist know-how and many years of experience of our experts. In this way, we continuously produce precise analyses of potential developments on the capital market.
Another factor in reducing risk is the permanent monitoring of all allocations and their comparison with the aforementioned forecasts. If we identify new options or potential distortions, we contact our clients directly and ensure that their portfolios are adjusted accordingly.
Particularly in the area of alternative investments, we place great value on the intensive quality checks of the managers and funds that we select. Our dedicated team is entrusted with this task. Our experts take a lot of time - often over several months - are in direct contact with managers and check every detail before we include them in our range.
The family office has long since gone beyond the mere wealth management . In recent years in particular, private investors have become more demanding and services have become correspondingly more individualized. At the same time, the investment universe and the associated asset allocation options have grown considerably.
These are trends that will continue to develop in the future. On the one hand, expertise and market orientation are more important than ever - services that family offices have long offered thanks to their high level of specialization. On the other hand, personalization demands more than just trusting contact with the contact person. The implementation of digital solutions also plays a major role. Asset owners are demanding more freedom of choice, are taking the initiative themselves more often, want to keep an unrestricted overview of their portfolio and subscribe to funds independently.
To make this possible, FINVIA has relied on specially developed digital tools since its foundation, for example, which give you precisely this control - always with the security of being able to fall back on our knowledge and our employees at any time.
About the author
Marc Sonnleitner
Marc Sonnleitner is one of the founders of FINVIA. As Chief Legal Officer (CLO) and Managing Director of FINVIA Capital GmbH, he is responsible for portfolio management and regulatory issues.
After studying law in Mainz, he began his professional career in foundation management at Dresdner Bank AG, moving to UBS Sauerborn in 2008. In both positions, he managed large family assets and foundations. In 2011, he joined the family office of the Harald Quandt family, HQ Trust GmbH, together with some of the current FINVIA founders and was responsible for the management and support of complex wealth until the end of 2019. The licensed lawyer is also involved in several foundations on a voluntary basis.
