What Does It Take To Set Up An Effective Family Office?
Podcast: What Does It Take To Set Up An Effective Family Office?
In this episode, Richard Jason Wolkowitz discusses how the family office concept has evolved over the years. He focuses on three main areas: existing single-family offices, embedded family offices within operating companies, and concept family offices that are formed to protect newly acquired wealth. Rich also explains how embedded family offices can blend business assets and personal assets, which can lead to problems if not appropriately managed.
Tune in to learn more about evolving strategies for managing a successful single or embedded family office!
[00:01 – 08:05] Exploring the Evolving World of Family Offices with Rich Wolkowicz
- Introducing Richard to the show
- Family offices have evolved dramatically over the last 30 years, becoming more fluid in the previous five years
- The three main types of family offices: existing single-family offices, embedded family offices, and concept family offices
[08:06 – 17:48] Best Practices for Protecting Liability, Avoiding Audits, and Maintaining Licenses
- Family offices are complex, involving financial management, tax, family dynamics, and values
- Guardrails need to be put back in place to protect from legal liability, audits, and regulatory risks
[17:49 – 21:29] Setting Up Shared Services Agreements and Mitigating Risks
- Three components to focus on: operational excellence, financial prosperity, and durable family harmony
- Richard shares the challenges of multitasking for family office executives
- Mitigation techniques such as setting up a shared services agreement
[21:30 – 32:34] Examining the Benefits and Costs of Embedded vs. Separate Family Offices
- Banks, lawyers, and IRS are becoming more interested in looking into the expenses and overhead of family-owned businesses
- Families can decide to keep it embedded or lift it out based on their discipline
[32:35 – 35:30] Closing Segment
Connect with Richard!
Among the myriad of data points available, there’s two that stand out as key indicators of profitability: Internal Rate of Return (IRR) and Cash-on-Cash Return.
In the world of alternative investments, few sectors have garnered as much respect for their stability and long-term appreciation potential as commercial real estate.
Ben Fraser, Chief Investment Officer at Aspen Funds and co-host of the Invest Like a Billionaire podcast, discusses the current state of inflation and its implications for investors.
A real estate private equity firm that owns and operates high quality multi-tenant office assets in emerging secondary markets.
Interested in learning more about Excelsior's investment opportunities?
104 Woodmont Blvd, Suite 120
Nashville, TN 37205
Disclaimer: Under no circumstances should any information presented on this website be construed as an offer to sell, or solicitation of an offer to purchase any securities or other investments. This website does not contain the information that an investor should consider or evaluate to make a potential investment. Other materials related to investments in entities managed by Excelsior Capital are not available to the general public.