Family office launch guide: who to know when you’re opening or hiring for a family office

Todd Angkatavanich, Natasha Pearl, Bill Bjiesse, and Lisa Featherngill on a pink background.
Todd Angkatavanich, Natasha Pearl, Bill Bjiesse, and Lisa Featherngill.

  • As global wealth surges, more people want to start family offices to take control of their finances.
  • Insider spoke to more than a dozen industry insiders to compile a list of 21 must-know experts.
  • See more stories on Insider’s business page.

Whether they’re rags-to-riches entrepreneurs or old-money heirs, many of the wealthy have created their own family offices to oversee their assets.

Citi estimates that as many as 15,000 family offices have been created in the past two decades alone.

Insider spoke with more than a dozen family-office professionals to find out who the wealthy go to when deciding to set up their own shops. Whether they’re lawyers or wealth managers, here are 21 must-know family-office experts.

You can read our full story if you’re an Insider subscriber: These are the 21 advisors, accountants, and lawyers to know if you’re thinking about starting your own family office

Insider also rounded up some of the must-know executive recruiters in the space, as hiring top talent is key to maintaining wealth that lasts for generations.

Meet 8 top recruiters scouting talent for family offices as the secretive wealth managers to the world’s richest look to supercharge their investing prowess

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60% of super-rich family offices own crypto or are interested as inflation soars, Goldman Sachs says

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Cryptocurrencies have boomed in 2021, despite a recent plunge.

  • 60% of family offices have already invested or are interested in crypto, Goldman Sachs has found.
  • Many investment firms of the rich increasingly see crypto as a hedge against inflation, the survey said.
  • Yet others remain concerned about cryptocurrencies’ volatility and the safety of the market.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The investment firms of the super-rich are increasingly interested in cryptocurrencies, a survey by Goldman Sachs has found, with 15% already having bought in and 45% saying they could well do in the future.

Goldman said in a report on Wednesday that many respondents said they were considering cryptocurrencies “as a way to position for higher inflation, prolonged low rates, and other macroeconomic developments following a year of unprecedented global monetary and fiscal stimulus.”

The bank surveyed 150 family offices – investment firms that look after the wealth of the very rich.

Interest in cryptocurrencies such as bitcoin varied from region to region. Goldman found 24% of family offices in the Americas had put some money in the space already, compared to just 8% in Asia and 8% in Europe, the Middle East and Africa (EMEA).

In Asia, 68% of family offices said they are interested in investing in the future, compared to 39% in the Americas and 35% in EMEA.

Read more: WATCH: Crypto analyst David Grider and venture capital investor Ria Bhutoria discuss state of the market, under-the-radar altcoins, and outlook on regulation

Goldman said digital assets were mentioned as one investment solution by those concerned about inflation. Around 40% of respondents said they were concerned about monetary debasement as central banks pump money into economies, with more than 40% of this group saying they would consider buying digital assets.

However, 39% of family offices around the world said they were not interested and would never invest in crypto. Of these, 49% said cryptocurrencies, which are highly volatile, were not a good store of value. Just shy of 40% said they were not currently comfortable with the infrastructure, such as trading and storing.

Family offices are a growing force in the investing world, thanks in large part to the boom in billionaires. Of the 150 firms surveyed by Goldman, 22% managed $5 billion or more and 44% managed between $1 billion and $4.9 billion.

Goldman’s report said: “Our conversations with family offices indicate they are interested in getting exposure not only to cryptocurrencies but also to innovation in the digital assets ecosystem.”

Read the original article on Business Insider

Who to know when you’re launching a family office

Todd Angkatavanich, Natasha Pearl, Bill Bjiesse, and Lisa Featherngill on a pink background.
Todd Angkatavanich, Natasha Pearl, Bill Bjiesse, and Lisa Featherngill.

  • As global wealth surges, more people want to start family offices to take control of their finances.
  • Insider spoke to more than a dozen industry insiders to compile a list of 21 must-know experts.

Whether they’re rags-to-riches entrepreneurs or old-money heirs, many of the wealthy have created their own family offices to oversee their assets.

Citi estimates that as many as 15,000 family offices have been created in the past two decades alone.

Insider spoke with more than a dozen family-office professionals to find out who the wealthy go to when deciding to set up their own shops. Whether they’re lawyers or wealth managers, here are 21 must-know family-office experts.

You can read our full story if you’re an Insider subscriber: These are the 21 advisors, accountants, and lawyers to know if you’re thinking about starting your own family office

Read the original article on Business Insider

Bill Hwang lost $8 billion in 10 days during the Archegos meltdown, reports say

Bill Hwang
  • Bill Hwang lost $8 billion dollars in 10 days during the Archegos meltdown, The Wall Street Journal reported.
  • Traders and investors said this is one of the fastest losses they have ever seen.
  • The fiasco exposed the fragility of the financial system and shed light on more obscure practices such as the use of total return swaps.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell

Amid the largest melt down of a firm Wall Street has witnessed since the global financial crisis, it wasn’t just banks that lost billions. Bill Hwang, the man behind Arcehgos Capital Management, also suffered a staggering $8 billion dollars in 10 days – one of the fastest losses of that size traders have ever seen, The Wall Street Journal reported.

The massive selloff was largely felt on Friday last week when shares of media conglomerates and investment banks dropped off, sending shockwaves through the market and sparking fears of wider spread contagion.

Japanese firm Nomura Holdings said it could suffer a possible loss of around $2 billion, while Credit Suisse Group, which has declined to provide a numerical impact, could see around $3 billio-$4 billion, according to reports.

Hwang, who founded Archegos as a family office in 2013, used borrowed money to make large bets on some stocks until Wall Street banks forced his firm to sell over $20 billion worth of shares after failing to meet a margin call, hammering stocks including ViacomCBS and Discovery.

The fiasco exposed the fragility of the financial system, especially those involving lesser-known practices such as a total return swaps, a derivative instrument that enabled Hwang’s office not to have ownership of the underlying securities his firm was betting on.

It also revealed the lack of oversight of family offices, which manage more than $2 trillion, The Wall Street Journal reported. Family offices don’t have to disclose investments, unlike traditional hedge funds.

“The collapse of Archegos Capital Management and the billions of dollars in losses to investors and other market participants is a vivid demonstration of the havoc that errant large investment vehicles called ‘family offices’ can wreak on our financial markets,” Dan Berkovitz, a Democratic commissioner on the Commodity Futures Trading Commission, said in a statement, Thursday.

“A ‘family office’ has nothing to do with ordinary families. Rather, it is an investment vehicle used by centimillionaires and billionaires to grow their wealth, reduce their taxes and plan their estates,” Berkovitz said.

The founder grew his family office’s $200 million investment to $10 billion, but he did not need to register as an investment advisor since he was only managing his own wealth.

But this isn’t the first time the devout Christian founder, who is known for his risky investments, has run into trouble. In 2012, Hwang pleaded guilty to insider trading and closed down his Tiger Asia Management fund. He was banned from managing clients’ money in the US for five years. In Hong Kong, he was also banned from trading securities in 2014 for four years.

Yet, in spite of the huge losses as a result of his fund’s implosion, some have praised Hwang’s abilities.

Tom Lee, head of research at Fundstrat Global Advisors, in a tweet on Tuesday, said investors should be cheering hedge fund successes not jeering their failures. Lee said Hwang, who he has known for many years, is “easily in the top 10 of the best investment minds” that he knows.

Meanwhile, billionaire hedge fund pioneer Julian Robertson, who founded Tiger Management in 1980, maintained that he is a “great fan” of former Tiger cub Hwang and would invest with him again despite the recent turn of events.

Read the original article on Business Insider