Notes

Why Should You Consider a Family Investment Firm?
Family investment firms are discreet, professional investment firms created to manage the assets of wealthy families. Typically, these firms are staffed with independent experts who put the needs of the family first and can offer impartial financial advice free from conflicts of interest.

Family investment firms offer several advantages as part of your wealth management plan. Not only do they provide tax-efficient solutions for inheritance and succession planning, but they also enable you to retain control over your assets.

They can be an excellent way to pass on your wealth to your children, but they may not be suitable for everyone. It is essential that you carefully weigh all the pros and cons before making a final decision. It may be beneficial to consult a tax consultant who can help assess all available options.

One popular way to transfer wealth into a family investment company is an outright gift. This method may be especially advantageous for younger families who wish to avoid inheritance and capital gains tax (IHT) charges. Nonetheless, it's essential to remember that outright gifts have no legal or contractual protection so make sure you consult your accountant and lawyer before making any decisions.

Another popular method for passing on your wealth to your children is through a discretionary trust. This is often more tax-efficient than setting up a family investment company and easier to set up. Furthermore, this type of inheritance provides your children with security and assurance that they will inherit your resources in the future.

In the past, wealthy individuals and families would invest their funds through institutional funds that charged a high management fee for managing their investments. Recently however, these funds have become more cost-efficient for high-net-worth clients; allowing them to operate as standalone entities while keeping costs low while still producing strong results.

The growing concentration of wealth among ultra-wealthy families is a major force behind the expansion of family offices worldwide, as reported by EY in its 2018 guide. According to this research, family office s are among the fastest-growing investment vehicles globally today.

They possess greater freedom to make investments than traditional investment firms since they don't need a formal mandate or investment committee. Instead, the goals are determined by the founders of a family office .

This gives them the freedom to be creative with how they allocate capital and structure deals. Furthermore, they have access to more liquidity options than institutional funds or private equity firms can offer.

Due to their lack of centralized investment processes, they tend to be more accommodating when it comes to exiting investments. Furthermore, since they tend to hold onto assets for longer periods of time, they may be better equipped to accommodate a company's growth trajectory than most investors are.

Family offices can be an effective source of capital for businesses or new products, especially when the business needs additional growth or profitability. Family offices usually possess deep domain expertise within a given industry which makes them particularly beneficial to businesses seeking funding.
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