“Wealth is something we build for ourselves and for our future generations. It becomes part of the legacy we leave behind, interwoven with our values, aspirations and the heritage we carry forward.”
Generational wealth encompasses much more than just financial resources; it’s a holistic approach to preserving and enhancing the well-being of future generations and there are several factors that contribute to this:
Being Part of the Family: The bedrock of generational wealth are your family members, their unique culture, traditions and beliefs. Building a strong family bond and a shared perspective and understanding are essential in ensuring family wealth is protected and built upon. It’s important for each member to feel a sense of belonging and pride, so that they are motivated to contribute positively to the family’s legacy.
Developing Your Family’s Strengths: The collective knowledge, education, and skills within a family should be passed down, built upon, and should by no means be limited to the academic. If preserving or growing the family’s wealth is the goal, members simply cannot afford to rest on their laurels and instead, lifelong learning, curiosity, and continuous skill development should be strongly encouraged.
Your Family Name & Network: Connections, relationships, and a positive reputation within and outside your family are all important factors in building your family’s social and financial capital. Having a broad and diverse social network can provide access to resources and knowledge that are not readily available within the family. As part of this, it’s important to seek out and maintain fruitful business connections and trusted relationships with advisors. Essentially, it’s about keeping your family close to anyone that can offer opportunities for growth.
The Family Finances: The most recognised aspect of generational wealth is of course a family’s financial position, i.e. the tangible monetary resources and assets a family owns, such as real estate, stocks, bonds, and businesses.
Proper management of these assets is crucial for sustaining wealth across generations. If done well, one family member’s success can live on for centuries with great, great grandchildren and beyond benefiting from their ancestors’ foresight and strong planning.
At Capital International, we have assisted many clients in preserving and growing their generational wealth and consider the following steps critical to this:Establish a documented investment philosophy which provides guiding principles for the family’s wealth management.
Create a diversified investment portfolio that aligns with your family's risk tolerance and long-term goals.
Encourage younger generations to begin investing as early as possible and to generate engagement in inter-generational wealth management. (The earlier you start, the more time compound interest has to work its magic, creating growth over time)
Spread investments across different asset classes like shares, bonds, property and exchange traded funds (ETFs) to reduce risk and provide a more balanced return. This protects the family’s wealth while still allowing it to grow.
In an increasingly mobile world, it is imperative that a global approach to wealth management is employed to avoid becoming too focused on one or two geographic “home” markets, missing out on wider opportunities as well as diversification benefits.
Regularly review and adjust your financial plan to adapt to changing circumstances and goals. Educate family members on financial management and the principles of investing.
Work with a professional investment manager who can assist you in all these areas, helping you to learn, as well as to reduce the risk and stress of managing the family wealth for future generations.
In closing, “The investment philosophy and objectives of a family office are the guiding principles that define and shape its approach towards wealth management. These core values play a pivotal role in establishing the investment strategies, policy formulation, and overall direction of the family office’s financial management.”
Permit me to introduce myself, my name is Lerato Lebitsa, Business Development Manager for Capital International Group – Discretionary Investment Management. We offer powerfully effective investment solutions that are effective, with ultimate flexibility, and are risk rated. With our central investment philosophy, based on sustainable alpha, running through all our services we offer advisers and their clients a variety of ways to structure their portfolio.
About the Author: Lerato Lebitsa is Business Development Manager for Capital International Group – Discretionary Investment Management. They offer powerfully effective investment solutions that are effective, with ultimate flexibility, and are risk rated. With a central investment philosophy, based on sustainable alpha running through all their services they offer advisers, family offices and their clients a variety of ways to structure their portfolio.
DISCLAIMER:
The views, thoughts and opinions expressed within this article are those of the author, and not those of any company within the Capital International Group (CIG) and as such are neither given nor endorsed by CIG. Information in this article does not constitute investment advice or an offer or an invitation by or on behalf of any company within the Capital International Group of companies to buy or sell any product or security or to make a bank deposit. Any reference to past performance is not necessarily a guide to the future. The value of investments may go down as well as up and may be adversely affected by currency fluctuations. CIG, its clients and officers may have a position in, or engage in transactions in any of the investments mentioned. Opinions constitute views as at the date of publication and are subject to change.
Capital International Limited is a member company of the Capital International Group and is licensed by the Isle of Man Financial Services Authority. Capital International Limited is a member of the London Stock Exchange.
General Disclaimer
The information is intended for general informational purposes only and may not apply to your specific circumstances. It is not intended to provide legal, tax, investment, financial, or professional advice, nor should it be construed as such. The content is not meant to endorse or recommend any third-party service provider, nor should it be considered a solicitation, inducement, endorsement, offer, or advice to buy or sell securities, commodities, digital assets, or financial instruments. Please note that no information provided should be considered comprehensive or complete, and none constitutes professional or financial advice.
@Copyright LuciaDeKlein Private Office 2025
MODERATOR: Kate Rees, CA (SA) within the family office space, and private equity.
The Basso Group, with a 30-year track record of success, operates offices in Zurich, Stamford (US), and Singapore. Basso Global Partners provides a robust platform for family offices and qualified independent asset managers to co-invest in exclusive private market opportunities alongside the firm’s principals and their families.
Hani Abuali is the CEO and partner of Basso Global Partners. Hani is the former Chief Executive Officer of a leading independent multi-family office in Middle East. Hani has over 30 years of experience in investment and finance. He was previously Managing Director at Mount Kellett Capital, and Portfolio Manager at Polygon Investments. He was Managing Director at Morgan Stanley Asia, where he ran Proprietary Trading and co-headed Telecom Research (#1 ranking for five years 2000-2005 in Institutional Investor and Greenwich). Hani started his career in finance in New York as an Oil & Gas research analyst with Donaldson, Lufkin & Jenrette.
Dwight Nelson is a Founding Partner of Basso Capital Management, where he has managed multi-strategy hedge funds and managed accounts since 1999 in addition to his own Family Office. Previously Dwight was at Grace Brothers Ltd in Chicago, employed as a portfolio manager for a multi-strategy hedge fund. Dwight graduated from the University of Chicago with honors in Economics.
General Disclaimer
The information is intended for general informational purposes only and may not apply to your specific circumstances. It is not intended to provide legal, tax, investment, financial, or professional advice, nor should it be construed as such. The content is not meant to endorse or recommend any third-party service provider, nor should it be considered a solicitation, inducement, endorsement, offer, or advice to buy or sell securities, commodities, digital assets, or financial instruments. Please note that no information provided should be considered comprehensive or complete, and none constitutes professional or financial advice.
@Copyright LuciaDeKlein Private Office 2024
General Disclaimer
The information is intended for general informational purposes only and may not apply to your specific circumstances. It is not intended to provide legal, tax, investment, financial, or professional advice, nor should it be construed as such. The content is not meant to endorse or recommend any third-party service provider, nor should it be considered a solicitation, inducement, endorsement, offer, or advice to buy or sell securities, commodities, digital assets, or financial instruments. Please note that no information provided should be considered comprehensive or complete, and none constitutes professional or financial advice.
@Copyright LuciaDeKlein Private Office 2024
Let’s connect, with Alexander Galambos, Family Office liaison and multi-entrepreneur 2.0 with 20 years of experience in the tech and luxury industry.
“I Am Masterful at sculpting success from chaos with a zero budget. Time is my currency, and innovation, passion, professionalism, and elegance are my trade.”
Alexander is joining us from Vienna, Austria.
Could you paint a vivid picture of a day in the life of a Family Office professional and multi-entrepreneur, Alexander? We’re deeply curious about your role’s unique challenges and rewards.
I was introduced to family offices through my activities as an entrepreneur. Initially, I connected with several family businesses rather than family offices directly. Over time, I also became acquainted with family offices. They appreciated my hands-on approach and interest in exploring various opportunities, including club dealings. That’s how I initially contacted them. It's a fascinating journey.
I joined a remarkable single-family office established by a 13th-generation German family earlier last year. I’ve been deeply involved in their journey, from setting up the family office to crafting its charter, aligning family members, and determining which assets to include. It’s inspiring to collaborate with such an intelligent and ambitious next generation, working alongside the principal to ensure proper governance and structure.
Additionally, I collaborate with a family whose investment banking legacy spans 500 years. Together, we focus on helping SMEs scale internationally, leveraging the unique family office mindset and ecosystem.
Our discussions often center on aligning the family’s mission with its long-term strategy—balancing tradition, innovation, and sustainable growth.
Each family is different; for example, one family relocated to Belgium for various reasons, so that's where we find ourselves now. Personally, it’s interesting for me to observe how everything is unfolding. This reinforces the idea that a family office should be considered a company. It would be best if you operated efficiently, and it can be a 24/7 job. You have two options: take on the tasks yourself or hire the right people. These are some of the primary challenges faced by a family office. First and foremost is how to structure family members' involvement. Additionally, there's the question of how much to outsource. It's often a balancing act between insourcing and outsourcing.
It's essential to have a clear understanding of your competencies and knowledge. However, seeking professional help for other challenges is necessary since many advisors may not be equipped to handle them. Finding the right match in an advisor is crucial for adequate support.
To elevate their impact, several fundamental steps must be taken. First, it is essential to define their vision. Second, engaging in conversations to unpack their viewpoints is crucial. Recently, I had an enlightening discussion with a family office regarding a new approach to impact investment. This approach, known as regenerative investment, transcends traditional sustainability by incorporating a more systemic perspective. In this framework, you view yourself as part of a more extensive system. This shift in mindset alters decision-making, ensuring that all investments are made with this comprehensive understanding in mind.
Understanding your target market or the people you want to engage with and work with. It's important to stay engaged and proactive. To reach the next level, you must think like an entrepreneur. Entrepreneurs should always be aware of market trends and current events. That's a key aspect to consider. Some family offices tend to get comfortable and complacent, but that's not how you should approach things. You need to view this as a business environment that requires attention and focus 24/7. Regarding the role of professionals in a family office, they provide support and keep everyone informed of best practices.
This is a complex issue because the family unit is unique, and no one from outside the family can truly understand it. I believe that professionals should act as partners for the family office. That's the best role they can play. The family office cannot outsource its decisions, dreams, or core values; those are intrinsic to the family. Instead, it can only enlist outside professionals to support its endeavors.
It's essential to listen carefully and be patient. Listening is crucial, and communication is key. I would say 99, 90, plus percent of wrong decisions are based on a lack of clear communication. Being transparent in communication is, I think, the best advice.
I think there is no best advice. I guess being adaptive and flexible are kings. Again, as an entrepreneur, you have to be, you have to have this skill. If you don't have this skill, you will not be a good entrepreneur. So, I think that, as an entrepreneur, in everything you do, you must be flexible, listen to the market and what's going on, and be predictive.
It's a little bit like I had a conversation this morning with someone who is a pilot, and that's a perfect example. So, pilots need to communicate clearly in the cockpit. If something goes wrong, the plane can crash. So again, communication is key.
A few discussions come to mind because I feel very privileged in this regard. One noteworthy debate took place last year. It was with a member of an aristocratic family that was celebrating its 750th anniversary. When asked about their secret to lasting so long, he shared insights into what has contributed to their generational wealth. It was a fascinating perspective on maintaining wealth over centuries. He drilled it down to two things. So, he was asked, what's your secret for surviving generational wealth for so long? And, you know, I might have to add one sentence. They have lost everything many times. In 750 years, many things happen. They will also be in phases they go through, like losing their influence, wealth, and everything else. But the answer was two things remain: family and education.
He described it as a network and its contacts. Knowledge and connections are key. He emphasized that you can never have too many contacts; that was precisely what he said.
The possibilities are vast. Nowadays, wherever you look, there are opportunities available. I grew up during a time when, even as a student, I had to wait until Monday to access the library if I had an idea over the weekend. It was a different experience back then.
Family offices have a unique advantage when aligning their investments with their vision. Unlike companies that must meet the diverse needs of creditors and debtors, family offices operate in a more flexible environment. They can create and pursue projects that resonate with their values and long-term objectives. Family offices will likely make more thoughtful, long-term decisions when they adopt a systematic approach to their vision. This perspective enables them to leverage their networks effectively, leading to better outcomes. Overall, the characteristics and features that family offices typically possess—or should possess—support this strategic approach.
The strategy for deciding which industries to invest in, among other considerations, stems from a clear vision and a systemic approach. From my perspective, family offices have a promising future. The family I mentioned understands the importance of safeguarding small and medium enterprises. They have the advantage of not being bound by institutional investors' pressures, such as the requirement to deliver immediate returns to shareholders. This flexibility allows them to take a different direction in the economic landscape, focusing on long-term impact rather than short-term gains.
I'm in a great place because technology provides instant access to our needed information. This accessibility opens up a world of opportunities. It’s pretty simple: we can connect many ideas and collaborate with skilled individuals, leading to amazing potential businesses.
The key is to bring together the right people with the right mindset and shared goals.
There are no obstacles; it's just another day.
When you look back on history, family offices can teach us a lot about the structures at that time, the aristocracy, the novelties, etcetera. Many structures had been performing very well for hundreds of years. We are just focusing on the last 70 or 80 years.
One of the main challenges companies face when raising funds is the differing mindsets and expectations regarding business and outcomes compared to, for instance, family offices. When these two worlds intersect—family office thinking, which focuses on generational wealth and responsibility—success becomes much more attainable. This blend of perspectives is crucial for achieving positive outcomes.
It's a people's game. The more languages you speak, the better your understanding of different mindsets and cultures will be. When we say it's a people's game, we mean that the more languages you know, the better you can connect with people and understand their perspectives.
Speaking multiple languages is incredibly valuable. Language remains paramount while technology is advancing—providing tools for real-time translation. Communication is critical in leadership and all areas of life, making language skills even more important.
The connection to Africa is still being established. Generally speaking, our vision is to eliminate hunger in the world. While we have a more detailed mission statement, that idea captures what we strive for. This goal applies to all regions, not just Africa specifically. However, I find Africa to be an exciting market. My perspective differs from the common insights you typically hear; I'm sharing my observations. I appreciate that many successful entrepreneurs and family offices have succeeded through their efforts.
I have a strong appreciation for Simon Sinek. Another figure that comes to mind is Scott Galloway; he's very outspoken. Many successful entrepreneurs share their insights, and I am genuinely grateful to them. By listening to their experiences, we can save time and learn valuable lessons. These individuals started from nothing, and through their talent, networks, and a bit of luck, they have achieved success. There are many ambitious individuals out there who aspire to succeed, but I believe that some might lack this drive and mindset.
For me, it's home. After all my traveling, home is my favorite destination because I genuinely enjoy quality time spent there.
As for my favorite hobby, I would say it's having conversations with people. Even like our current conversation, I enjoy interacting and hearing stories. Life creates the best stories. It’s just amazing! I enjoy having conversations, although I prefer to keep some discussions shorter if they don't resonate with me as much.
General Disclaimer
The information is intended for general informational purposes only and may not apply to your specific circumstances. It is not intended to provide legal, tax, investment, financial, or professional advice, nor should it be construed as such. The content is not meant to endorse or recommend any third-party service provider, nor should it be considered a solicitation, inducement, endorsement, offer, or advice to buy or sell securities, commodities, digital assets, or financial instruments. Please note that no information provided should be considered comprehensive or complete, and none constitutes professional or financial advice.
@Copyright LuciaDeKlein Private Office 2024
Thoughtful Conversations | Inspired Action
Held on 25 July 2024
In conversation with Brian DeLucia and Anne Klein.
“The State of Family Offices”
Who is Brian DeLucia?
Brian DeLucia is a respected family office influencer who specializes in real estate, critical infrastructure, and old economy recurring revenue businesses. His unique ecosystem of resources and experiences combines other family offices, institutional capital, and real-world scenarios to build strategic relationships within the confidentiality framework. Brian aligns shared goals with missions and values. He communicates regularly with attorneys, accountants, advisors, family offices, and asset owners to gather and share intelligence. Additionally, Brian embodies a disciplined philosophy of family governance that aligns with its mission and values to uphold risk management, health, safety, and security of its members. Brian ensures that his family legacy in the real estate industry lives on through his participation in events and conversations. His love for competitive sports demonstrates his desire to thrive in a competitive industry.
What is the connection between Brian DeLucia (“Brian”) and Anne Klein?
The co-authors of “SWITCHING BILLION-DOLLAR CONVERSATION LINES, FAMILY OFFICES & GENERATIONAL SUCCESS.” They were introduced before the 2020 lockdowns. Despite facing various professional, personal, and business barriers, they are keenly interested in family offices, founder-led companies, intergenerational planning, and creating opportunities for others. They recognized that differences and challenges often lead to innovation and unity through shared values, leading to a greater purpose, similar to the history of successful families. They wrote the book to share their knowledge and wisdom with the international family office community and the generational wealth profession in areas that are often a mystery to others through their single and shared experiences and practical insights. Anne Klein’s company name is derived from Brian’s surname, which was switched around and combined with her surname.
Summary
LuciaDeKlein Private Office recently organized an event for boutique advisors, during which we gained insights from Brian regarding family offices. Brian shared his unconventional entry into the world of family offices, drawing on his experience in sports to highlight the importance of team selection in the finance industry. He also discussed different definitions and forms of family offices and the impact of COVID-19 on family office dynamics.
FULL INTERVIEW
Background to the session
We organized an event for boutique advisors to ensure everyone gained insights into important topics. This puts advisors in more crucial roles. It’s not easy to access specific topics, such as family offices. We had the opportunity to interview Brian DeLucia, and here is a summary of our discussion:
The introduction and additional exposure to South Africa
We were introduced to Brian through a mutual connection. During one of his trips, he visited South Africa as part of a U.S. Government delegation. He delivered a keynote speech on leadership and economic development through private capital, indicating a high level of interest in the topic. Brian explained that he entered the world of family offices in an unconventional and non-traditional manner. Despite not having a high-profile banking or academic background, he entered the industry from a sports background, starting his career at Fox Sports during the 1990s to 2000s, covering the National Football League.
How sport influenced Brian’s leadership philosophy
Brian drew on his experience in sports to explain that the process of aligned interests through team selection in the finance industry is similar. Intelligent insights are needed to choose the right teams that align with interests. Growing up in a sports environment highlighted the importance of selecting players who complement each other’s skills, bringing domain expertise and uniqueness to strengthen the team.
Introduction to the world of business
Brian’s curiosity extended to businesses in various industries, including construction. He started at the bottom, learning all aspects of the company, including sweeping the floors to maintain clean job sites. However, he soon realized that he needed to learn different things. Some liquidity events within his ecosystem occurred 15 years ago, shifting his focus to put more structure in place.
Flowing into the family office landscape is as subjective as the definition.
According to Brian, the definition of a traditional family office is subjective. There are many ways to define a family office and various forms of family governance. Some treat it as a standalone office, while others work within virtual family offices or run it as an embedded office, reflecting the spirit of a family office. Virtual family offices have no physical location, but they offer services remotely.
The role of the family office and the family
The family office identifies the values and directives of what a specific family is seeking to accomplish, manages the family’s economic interests and non-financial affairs, sets up the framework for wealth transfer, and prepares the next generation for success in the same industry or elsewhere, utilizing family resources and values.
The evolution of family offices
Brian mentioned that family offices have been around for a long time, albeit more commercialized over the past 10 to 15 years. However, some shifts have happened post-Covid. Families that might have come out of the woodwork several years ago have receded a little over the past few years, opting for smaller groups to have aligned discussions in a more intimate setting. In the larger gatherings, we have seen a shift to exposing the next generation within families, allowing their children opportunities to network, finding common interests, and empowering this next generation to share ideas.
A world of disruption
Since COVID-19, various families have changed the dynamics around their internal teams, some becoming more professionalized while others reducing headcount. Aftershocks through broken supply chains and geopolitical unrest have family offices revisiting their portfolios to minimize execution risks. Concurrently, family offices have been faced with increased challenges and vulnerability in protecting their digital footprints and data, which has prioritized strengthening policies and procedures through many daily functions that include multiple layers of security.
The end
July 2024
Recorded by Anne Klein
It is estimated that a 5% wealth tax on multimillionaires and billionaires in the G20 countries could
generate $1.5 trillion annually. A taxation system overhaul would significantly impact the private
wealth and tax advisory landscape.
Fiduciary advisors and tax practitioners must continually upskill themselves to assist families in
navigating the global succession challenges for family wealth.
Supporting families effectively means understanding their unique needs and circumstances, including
unravelling their definition of family, what wealth means to them, their values and their vision.
With the help of diligent advisors, families can make informed decisions and effectively brief their
teams to manage future changes.
Wealthy families often require international tax
expertise to navigate the complex tax codes.
A detailed handrail note for tax is essential
for families, trusts, businesses and individuals,
mainly when dealing with multiple jurisdictions
and complex wealth structures. This can assist
in developing quick and long-term investment,
succession and tax planning strategies.
Families can record their values, vision and
mission for the Family and Business Charter
with expert advisors’ aid to safeguard their
legacy’s generational continuity. Various
generational and enterprise families have
successfully used family and business charters
over many generations.
Furthermore, by capturing formal dispute
resolution strategies, future generations are
empowered and seated at the table. This
approach helps ensure that families can
continue to thrive for future generations.
Wealthy families have privileges and
responsibilities. Managing wealth purposefully
and responsibly involves focusing on
succession planning, asset diversification,
unique investment opportunities, family
office arrangements, inter-generational estate
planning, philanthropy, business strategies and
reporting.
Advisors should understand the family’s reasons
for choosing different jurisdictions and be
knowledgeable about various topics, such as
tax and fiduciary matters. This will help steer the
next generation towards sustainable solutions.
Depending on various factors, clients might
have multiple wills when dealing with specific
jurisdictions or worldwide assets. The different
wills must work harmoniously; one should not
override the other.
Staying compliant is crucial and the role of the
family tax advisor is constantly evolving due to
global themes and fear factors.
Multi-generational families are often admired
for their resilience in difficult times. However,
as new generations emerge, new and old
challenges may arise. These challenges can be
attributed to a lack of familiarity and shared
experiences among family members. To
overcome these challenges, embracing change,
fostering an innovation environment and
developing sustainable strategies are essential.
Analysing and mapping the stakeholder
network is crucial to comprehend a family’s
distinct values, missions and visions. A family
business may involve various individuals,
such as company representatives, CEOs,
CIOs, CFOs, shareholders, business owners
and professionals like directors, trustees,
accountants and lawyers working for the family
or the family enterprise.
By analysing the stakeholder and the network
of influencers, one gains valuable insights into
the complexities and nuances of different
dynamics that shape decisions which align or
misalign matters but put things in perspective.
Non-family board members, married-ins,
extended family members, family council
members, leaders, next-generation family
members and lawyers or representatives
for family members may play a vital role
in the stakeholder network and the client
engagement journey. Their influence should
not be underestimated.
Identify the gatekeepers of the family legacy
to help uncover gaps in the current landscape,
provide a better understanding of the
investment and succession philosophy and
capture the enterprising spirit needed to keep
the legacy alive.
Gaining insight into risk management, the
types of assets held, and the definition and
allocation of assets for succession is crucial.
Each family’s unique characteristics impact
their property and lifestyle management,
thus emphasising the importance of tailored
services and next-generation education.
Neglecting security risks, including personal
and cyber threats, must be explored. Social
media risks for families must be addressed, as
they significantly impact family dynamics and
wealth. It is imperative to analyse the effect of
these often-unspoken factors.
Managing and safeguarding accounting
knowledge, intergenerational knowledge
transfer, balance sheet optimisation, deal
structuring and financial optimisation are
crucial topics for families and advisors.
Understanding and managing businesses,
corporate structures, family governance
structures, legal entities and financial services
is vital. Seeking business advice is critical for
family-owned companies.
Families with substantial investments and business
expertise are not inexperienced. Most investors who
invest millions in a business have already earned millions
in that sector. This awareness changes service models and
outlooks, customising advisory solutions.
A Private Trust Company for a family acts as a gatekeeper
for wealth and provides trustee services, ensuring business
continuity. It consolidates complex family structures and
offers access to critical family decision-makers.
Choosing the appropriate estate planning structure is
essential. Trusts and companies are two common types,
each with advantages and disadvantages.
Trustees owe a fiduciary duty to the trust’s beneficiaries,
ensuring asset protection and ownership planning.
A protector can be appointed to perform certain functions
in a trust; it is crucial to comprehend the restrictions and
limitations that must be considered. Typically, a protector
oversees the trustee’s actions and ensures that the legal
and ethical aspects of the trust are maintained.
Families might be interested in impact investing,
which benefits society and the environment while
providing returns. This reflects a shift towards sustainable
outcomes across all activities rather than just focusing on
philanthropy.
To create a cohesive philanthropic strategy for a family,
one should prioritise open communication, engage
in meaningful discussions and incorporate diverse
viewpoints aligned with shared values. Consider creating
a separate family philanthropy plan or incorporating
the philanthropy framework into an existing Family and
Business Charter outlining governance principles.
Some families use strategies to empower and teach the
next generation by offering a ‘starter pack’. Depending on
the family’s wishes, the starter pack can create a feeling
of independence and empowerment. The family uses the
opportunity to talk about topics relevant to family wealth
and succession and tends to observe how the starter pack is
treated. This will coincide with an advisory planning session
and ongoing discussions.
Younger family members can be encouraged to engage in
legacy-building techniques by creating a junior or shadow
board or involving them in family philanthropy.
Families benefit greatly from a diverse and robust advisory
board, including family and non-family members. The
board can provide valuable insights and advice, with family
representatives equipped to oversee family governancerelated
matters.
Some families appoint a specific advisor for family members or
units to ensure fairness. The advisor acts as a communication
conduit and assists with important decisions and choices. The
fundamental relationship plays a critical role in maintaining
harmony in the family.
Advising wealthy families is an intricate and highly skilled
business. As South Africans continue to globalise their wealth,
business interests and families, their advisors must keep up
to date with myriad factors, including compliance, reporting,
taxation and estate planning.
Enterprising families are incredibly important for the progress and prosperity of the world. They need support, good advice, and the motivation to make important decisions that will ensure a lasting legacy.
A few years back, I met Tsitsi Mutendi (CFBA, ACFWA) in a small coffee shop in Sandton, and we immediately connected on a deep level. We appreciate and understand each other, and we’ve been able to support each other through different stages of our lives. Although I must admit, Tsitsi is always ahead of the pack.
I’m thrilled that Tsitsi hosted my first podcast. Despite my initial hesitations about speaking publicly and concerns about my accent and communication skills, Tsitsi’s magic touch, with a capital T, shone through, even with a poor internet connection from my country’s side and not from Zimbabwe’s side.
Feel free to listen to the insights from years of experience in the private wealth industry, providing a global perspective on successful family legacies, and how each of us can create better stories for our families, by the integration of certain principles.
We also touched on the importance of the role that women play, and how we must write our own stories. If the “South African Afrikaans English, with a touch of French”, accent is harsh on the ear, then feel free to listen to the other interviews, hosted by Tsitsi.
Ultimately I have two goals with my business, one is stronger generational families and secondly, aligned opportunities for families and advisors.
Lastly, thank you Tsitsi and team, for the opportunity.
The financial landscape is evolving, with women in the United States now controlling over a third of household financial assets, valued at more than $10 trillion. This shift is expected to lead to a substantial transfer of wealth over the next decade, presenting a $30 trillion opportunity by the end of the decade. However, for women in South Africa, proactive family governance structures are needed as families are unprepared for the upcoming transfers. Women will need access to information and wisdom for wealth and legacy protection to manage this shift effectively. Effective multi-generational planning, asset protection, and robust family governance are essential to address the anticipated trillion-dollar wealth transfers. This shift also emphasizes the global need for superior guidance and services in the family office environment. Without careful planning, there is a risk of wealth loss during the transitional period, highlighting the importance of proactive planning and family office support.
