Based upon a number of studies, most family offices had returns of over 15% in 2017.
The increase in performance was due primarily to the investment in equities, as we continue to see a strong bull market. In addition, the second largest investments have been in private equity funds.
Family offices continue to become more structured and sophisticated, however one weak link appears to be the lack of “succession planning”. While we have seen an increase in the amount of planning for their succession, there appears to be a lot of work to be done in this area. More than one third of family offices expect the next generation to take control of the family office. it is essential that a comprehensive plan be prepared in writing and agreed upon by all of the key family members.
For additional information on how to prepare an effective succession plan, please contact: Michael Rosenblatt, President of FON Search and The Quest Organization at 212-971-0033 or via email at firstname.lastname@example.org
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