FAMILY OFFICE TRENDS-2020 (The Start of a series)
There are numerous changes taking place within family offices globally.
1. INVESTMENT STRATEGIES
One change that has been steadily on the rise is the significant rise in direct investments by family offices. Almost 40% of family office investments are through direct investments and we expect this trend to continue to increase in 2020 and beyond.
2. CYBERSECURITY
There has been a large increase in cybercrime events for family offices and unfortunately, this trend is expected to increase as well. We find that many multi-billion dollar family offices and of course much smaller family offices, are not doing enough to protect their assets from a technological standpoint.
3. COSTS ARE RISING TO RUN A FAMILY OFFICE
We always discuss the potential costs of running a family office with every family that is considering establishing one, however even for those that are already established, the costs continue to rise. The cost of additional and better qualified employees has clearly been increasing, accounting, legal and other professional fees have been rising, cybersecurity and physical security costs are increasing and even the outsourcing fees are on the rise.
If you have any questions on how to deal with any of the issues above, please contact Michael Rosenblatt at 212-971-0033 or Michael@questorg.com
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