Family Office Governance
Build a Family Office that serves the financial and professional needs of your family
Most enterprising families understand the potential benefits of a formalized family office, but customizing and building one is a complex task, and integrating it effectively into your broader enterprise is not always a straightforward process.
The decision to launch a family office often comes in the wake of a liquidity event — most typically selling some or all of the family business — or after years of accumulating windfall profits without a formalized structure to manage and redeploy them. When reflecting on the sizable fees paid to investment and wealth management firms to protect and grow these assets, or the privacy and customization a fully-owned and operated structure could provide, some families then rush to build out a family office to coordinate shared services such as investment management, estate planning, and philanthropy.
However, they often neglect to define the core vision and purpose of the organization and overlook critical questions about governance — including whether it even makes sense to launch a single-family office at all or to first experiment by joining an existing multi-family office to better understand the full range of costs and benefits.
LGA’s Family Office Governance services help you make these critical decisions about structure, governance, leadership and trustee succession, models of family participation, funding, guiding values, risk appetite, and the optimal menu of family services provided at any stage of your family office journey.
How does it work?
Our advisors assist you by:
- Facilitating discussions and workshops with all concerned stakeholders about the felt need for a family office and the range of design options available to address those specific needs
- Coordinating and integrating existing financial, legal, talent and support teams into any new structure
- Building a governance framework to ensure effective oversight and integration into your broader family enterprise system
How does your family benefit?
With the help from our advisors, your family will be better equipped to make critical strategic decisions about the ultimate suitability of a family office and the selection of key design features, service offerings, and staffing considerations — all supported by a robust governance framework that will ensure that it is run effectively today and into the future.
Contact us to learn more about our support for Family Offices
The second-generation CEO of a large family enterprise was approached by a strategic investor who made a generous and unsolicited offer for their legacy operating business. The CEO had previously never explored a sale — both because of her strong emotional connection to the company and its employees — two of whom were her kids — and because of its attractive cash flow and growth profile.
Family leaders must have the courage and stamina to create an inclusive, participative, and results-driven culture in the family and business, supported by the right policies and systems. Such a foundation will set the stage for a family legacy which both sustains across multiple future generations, and grows along the way with each group driving growth and diversification and making its own mark.
“Moments of crisis can bring families together or they tear them apart – the choice is ultimately theirs…”
Why is it hard to find good successors? We believe that the root issues occur earlier in the lives of next-gen members, linked to the manner in which they experience their family’s wealth and legacy during adolescence and early adulthood.
Many families have decided to formalize a Family Office to serve the financial and professional needs of family members.
As a result of our expertise, we are able to assist families across the spectrum of needs.
This article presents a systematic review of the literature on the subject of family philanthropy.
Nicolas specializes in governance design and succession planning for family enterprises around the world.
Ivan is a Founding Partner and consults with complex family businesses in the USA, Canada, Asia, Europe and Latin America.
Devin has been advising and teaching for over a decade and specializes in the financial, organizational, and strategic aspects of complex family enterprises.
Fernanda is a partner working primarily in Central and South America. Fernanda has extensive experience supporting families in transition.
Simran supports family members in building financial acumen, systems, process and structure to complex family enterprises so they can focus on sharing, collaboration, and harmony.
Tim Kelly led three family offices over the last three decades and now helps families solve the multi-faceted challenges of managing generational wealth.