The crucial role of family offices
Family offices are structures dedicated to managing the wealth of wealthy families, with the aim of preserving not only economic assets, but also family identity and values. In a constantly evolving economic environment, where the generational transition occurs more and more frequently through the sale of companies to private equity funds, family offices act as guardians of continuity and capital stability
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The challenge of generational transition
The generational transition represents one of the most significant challenges for business families. Many founders are faced with the difficulty of identifying heirs capable of managing the company. This often leads to the decision to sell the business, impoverishing the local business fabric and dispersing values and skills accumulated over time. It is therefore essential to educate the new generations to understand the importance of their role, not only as shareholders, but also as guardians of
corporate values.
Asset protection strategies
To ensure asset protection, family offices adopt prudent asset allocation strategies, avoiding the fractionation of assets. Management must be aimed at maintaining the integrity of the assets, avoiding both financial and income losses. Only at a later stage can we consider greater exposure to riskier investments, such as private equity or artistic assets. This graduality makes it possible to build a solid base for the future, while ensuring the continuity of family values
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Skills required of family officers
The skills needed for a family officer are varied and range from the integrated assessment of investments to the ability to negotiate between different family needs. It is essential that family officers know how to represent the entire family heritage, while respecting a value ‘purpose’. Continuous training, such as that offered by the Master in Family Office, is essential to ensure that professionals are always up to date on best management practices and strategies.
The future of family offices
With the increase in sales of family businesses to private equity funds, it is more than ever necessary for families to understand the importance of having a family office. These structures not only manage the heritage, but also the values and identity of the family. Entrusting management to competent managers, while maintaining an active role as shareholders, can guarantee the continuity and prosperity of the company, avoiding the dispersion of wealth and skills. Only in this way can the family heritage be preserved for future generations.