A Blend of Tradition and Innovation

Origins and Evolution

The concept of a family office has deep historical roots, tracing back to the days of the Roman Empire. These early iterations aimed to manage and preserve family wealth across generations. The modern family office, as we know it, began to take shape in the mid-19th century. With the rise of private banks and trust companies during the Industrial Revolution, wealthy entrepreneurs sought sophisticated means to safeguard and grow their fortunes.

Today, the core mission of a family office remains unchanged: to preserve and enhance the wealth of a family for both current and future generations. However, the scope and influence of family offices have expanded significantly, making them a pivotal force in both local and global economies.

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The Role and Influence of Family Offices

Family offices are increasingly influential players in financial markets. They operate with a level of discretion and independence from traditional financial regulators, often gaining privileged access to information and investment opportunities that are not readily available to the public. This unique position allows them to invest strategically and capitalise on emerging trends before they become mainstream.

Family Offices in New Zealand are driven by asset inflation, foreign investment, migration, and a favourable fiscal environment.

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The Structure and Management of Family Offices

Managing private wealth effectively requires a business-like approach. A family office is structured to handle various aspects of wealth management with precision and care, including governance, risk management, reporting and succession planning. Arguably, the two most critical functions of a family office are wealth management and succession planning. Effective wealth management ensures that the family’s assets are growing and protected, while succession planning addresses the transition of both wealth and leadership roles within the family.

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Investment Preferences: The Case for Private Equity

One of the preferred asset classes among family offices is private equity. This preference stems from the potential for higher returns compared to listed securities and the private nature of the transactions. Although private equity investments come with liquidity challenges, the emergence of private secondary markets is providing new opportunities for managing this issue.

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Alternative Asset Investment Access on Syndex

As more wealthy families establish their own offices, the sector is witnessing unprecedented growth. This trend is mirrored in New Zealand, where the private wealth sector is expanding. Being part of a family office not only provides access to exclusive investment opportunities but also to a network of like-minded individuals who value discretion and exclusivity.

The Syndex marketplace caters to high-net-worth individuals, syndicates and family offices, offering investment in alternative assets in the private market. The marketplace is open 24/7 and offers unique opportunities for portfolio growth and diversification that are not otherwise available on a public exchange.