Richard C. Wilson on the Family Office Industry
Richard C. Wilson speaks from Liechtenstein at a family office conference.
Richard C. Wilson gives an overview of the family office industry for people who want to work with family offices, build a family office business or reach family office investors. He discusses how these offices are structured, how they operate across society, what they prioritize and where they are based.
In this video: Richard C. Wilson (Family Offices Group)
What they said
- Running a small office. Richard says some successful single family offices operate with only 30 or 50 million dollars under management, while most have a 100 million or 200 million plus. He says technology lets a small office run with one expert generalist and outsourced work, while growing compliance and regulation can push some offices toward a multi-family model.
- Multi-family entry levels. Richard says requirements to join a multi-family office have fallen from generally 30 to 50 million down to 15 and 20 million. He says 20 million seems to be the real entry level, and that it has held mostly steady with a slight decline.
- Private, yet widely present. Richard describes family offices as secretive, with gatekeepers often protecting the family and some offices having no public website. He says their money touches many parts of society.
- Protecting family capital. Richard says the number one concern is protecting family capital, then growing it slowly over time. He says that for 90% of their investments, a typical family office wants capital protection and gradual growth, with room in small parts of a portfolio for riskier investments and attention to tax effects.
- Family office locations. Richard says family offices are spread across cities that create wealth, while growing economies such as Russia, India, China, Brazil and Indonesia are building their industries. He names Zurich, Geneva, London, New York, Monaco, Singapore, Hong Kong and, to a lesser degree, Panama as hot spots.
In their words
"if you're looking to work in the space or grow your family office business"
Why it matters if you are building or preserving great wealth
Richard's patent litigation example shows why a potentially huge return may not appeal to a family office focused on protecting capital.
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Anu Aga: Focus on one main cause. Her family found its giving more satisfying and impactful once it chose primary education for the underprivileged in India.
- Binod K. Chaudhary: Never chase a deal out of desperation. Stay cool and look at every part of the deal. Have your advisers and your finance team review it critically. Your counsel should review it too.
- Larry Connor: Learn from every mistake. Larry's team owns its failures and makes no excuses. They learn, change quickly, and keep getting better.
See the data
Frequently asked questions
What examples does Richard give of family offices' reach?
He mentions franchise businesses, apartment buildings, real estate developments, ETFs, REITs and hedge funds. He says angel investors and venture capital firms may be backed by family offices or by wealthy people who work with them.
How does Richard say people often become ultra-wealthy?
He says they usually sell a business or take it public, and often continue investing in operating businesses because they understand how they work.
Does Richard say a family office relationship has to be local?
He says some people want local service, while others may find it practical to fly an hour or two to meet with a family office.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.