Taking the reins of the family business and investment portfolio

The family approached us initially to discuss governance and succession planning. The wealth founder was in his late sixties and, although retired, a director of the business and personally managing the family’s – relatively high-risk - investment portfolio. It emerged that the eldest son, Mark, was concerned about his role and responsibilities should something happen to his father.

Mark’s goals:

  • Take the reins from his successful parent.
  • Agree a more cautious strategy for the investment portfolio, to provide more ‘cushion’ for the family should the business hit bad times.
  • Engage more family members in the business and investment portfolio to help manage potential family disputes about his future leadership.

Our recommendations:

  • Family Governance and Succession team to aid in drafting a family constitution and establishing a family council.
  • Investment Management team to conduct a full review of the family’s assets and recommended a staged transition from an entrepreneurial, relatively high-risk portfolio to a more balanced portfolio, with a clear investment strategy and asset allocation.
  • Family Office team in London to work with all other family member’s to engage more with decision-making.

Outcomes (to date):

  • Long-term strategic asset and currency allocation targets and annual investments reviews, enable Mark or other family members to raise issues more easily.
  • Bespoke, regular investment reports allow the investment committee and the Trustees to make well-informed investment decisions.
  • Reduced key man risk and improved family governance and succession planning across the whole family.
  • A close, working partnership with the family’s existing advisers to ensure careful consideration of tax and legal exposures across the family wealth.

Disclaimer: Please note, all case studies have been carefully anonymised. Although scenarios are based on real life events they have been fictionalised and are an amalgamation of client experiences. All names, locations and occupations have been replaced with pseudonyms.


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