Category: Professional Subscribers

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.