What Set Family Office Apart From Private Wealth Management?


The Ever-Changing Obsessions Of Customers With Private Wealth

The Global Business Complexity Index 2022 (GBCI) study from TMF Group is the ultimate badass guide that tells you just how damn challenging it is to kickstart and manage a business on a global scale. The GBCI 2022 is a badass analysis that dissects the gnarly business complexity indicators, totaling a whopping 292. It takes a deep dive into the gritty realities of regional and global challenges that straight-up impact the ease of doing business worldwide.

We’ve witnessed the mind-bending transformation of certain locales as the global crusade for transparency gains momentum,Quoted from Rani Jarkas, the financial expert in Hong Kong. Yo, the GBCI peeps be all like, “Yo, corporate governance is getting better, fam.” And guess what? Our baller private wealth and family office clients are saying the same thing, yo. They are seeing’ them same dope trends on an individual level, ya feel me? In a whopping majority of notorious private wealth and family office jurisdictions, those with private wealth are forced to expose their true identities to the almighty authorities. While the whole world seems obsessed with transparency for investors, there are still those rebellious souls who fiercely guard their precious privacy.

Yo, figuring out where to set up a family office and build a kickass asset management structure is all about being hardcore practical. You gotta consider stuff like time zones, how well you speak the language, and if you can easily tap into the mad skills and knowledge of experts. It’s all about being edgy, bro. However, our badass clients still give zero fucks about political, social, and economic stability when it comes to making decisions. The gnarly Russian invasion of Ukraine and the intense geopolitical friction between China and the US have totally cranked up the situation, making it way more precarious, man. Consequently, an influx of badass local experts are now predicting some serious volatility in the next five years.

Laws and regulations that are crystal clear and in-your-face tend to be way simpler in jurisdictions, thanks to the government’s badass efforts to help businesses and investors stay in line with the rules they’ve set. Singapore is like a badass country that’s all about flexing its government muscles to become the ultimate boss in wealth management. They’ve got killer legislation and a freaking powerful legal system that’ll make you think twice before messing with them.

Chasing Morally Superior Wealth Management

The newest generation of private wealth customers is realizing the dire need to manage their wealth with utmost responsibility. This could involve making badass socially conscious investments, paying taxes at a rate that is thought to be fair (or sticking it to the man if you’re feeling rebellious), ensuring kickass corporate governance, or unleashing your inner philanthropist and taking charity to the next level. It’s also damn true that more businesses—regardless of size—are now expected to prioritize sustainability.

This freaking trend has undeniably made some clients ponder the freaking bigger picture when deciding how and where to freaking manage their investments. Yo, check this out. The filthy rich and their fancy family offices have been throwing stacks of cash into eco-friendly ventures like there’s no tomorrow. 

Research from the 2022 GBCI shows that in a whopping 70% of countries, these ballers have been flexing their green investments. The so-called “gap” between the supposed transparency and effective governance offered in offshore and onshore jurisdictions is, quite frankly, more of a façade than anything else. Our keen observation has revealed that when clients dare to make comparisons, they are rudely awakened to the mind-boggling complexity that lies beneath the surface.

ESG’s skyrocketing popularity is expected to ignite a radical cultural upheaval on a freaking global scale and crank up the intensity in regions with lax regulations. Yo, listen up. If these freakin’ standards get their act together and go global, like they did in those EU states, ESG reporting could become the norm for everyone. And guess what? It won’t even make things more complicated. It’s like, no biggie.

Forget about the lame government telling us what to do. It’s all about badass corporations, badass customers, and badass private investors who are all about that ethical and sustainable business game. They’re the ones who are rocking the ESG scene and making things happen. The Private Wealth and Family Office sector has been dominating the scene, paving the way for the rest to follow. So, this ain’t some newfangled trend, my friend.


The Brutal Aftermath Of Covid-19

As stated by Rani Jarkas, the Covid-19 outbreak has kicked things into high gear, pushing customers to reevaluate their investing strategy and supercharge existing trends. This has fucking motivated some badass people to invest in fucking humanitarian causes more. Due to some gnarly cash flow problems, a bunch of clients’ businesses and structures got all mashed up and consolidated.

Inflation rates skyrocketing and the chaotic state of society and politics are finally getting the attention they deserve in certain jurisdictions in this messed-up post-pandemic era. Yo, check it out. Turns out, when governments decide to hook up firms and individuals with some mad help during this pandemic, the aftermath is straight-up inflation. They be pumping that cash into the economy and things be getting hella pricey.

The damn pandemic forced us to slash costs and find ways to be more efficient. Covid-19 made it crystal clear that we had to tighten our belts and get our shit together when it comes to managing expenses and assets. This will totally amp up the appeal of outsourcing options like payroll, accounting, and administration for all you edgy folks out there. When it comes to outsourcing requirements, TMF Group is the badass you need by your side. To make things a breeze, we’ll help slash those boring administrative expenses and provide a badass single point of contact.

A World That Is Morphing Into An Electrifying And Digitized

Family offices and private type of companies are totally hooked on technological platforms, man. This shit is all thanks to the damn Covid-19 pandemic, which fucked up face-to-face interaction, and there’s some sneaky-ass change happening in the background too. This change ain’t gonna be reversed, no chance. Technology remains the badass catalyst as the corporate realm embraces the rebellious concept of flexible working hours. But yo, there are some straight-up challenges tied to this transformation, man.

For businesses attempting to stay ahead of the curve or embrace cutting-edge practices, the daunting challenge of adopting newfangled digital reporting standards may rear its ugly head. As suggested by Rani Jarkas, the Chairman of Cedrus Group, the freaking demand to freaking electronically upload freaking tax bills through the freaking authority’s freaking system or freaking portal is freaking expanding globally. In 2020, a measly 24% of governments had the audacity to demand that all enterprises comply with this requirement. But brace yourself, by 2022, that number will skyrocket to a whopping 35%. Get ready for some serious edge, folks.

Family-run enterprises are totally jumping on the bandwagon and getting all edgy by embracing this style and showing a freaking heightened interest in using technology. This could involve enhancing reporting badassery or utilizing digital platforms to kick ass in evaluating the performance of assets. The elite and exclusive private wealth and family office clients will forever crave the raw and unfiltered human connection to ensure their unparalleled ambitions are achieved, even as technology relentlessly slashes the price of convenience. Technology enables unparalleled flexibility and ruthless efficiency, but to truly unlock its potential, one must wield it with unrelenting precision.

The Bleak Destiny Of Offshore Business

Offshore centers may receive some serious flak from certain circles, but in others, they’re seen as absolutely crucial for generating and protecting wealth, and ensuring that capital is distributed like a boss across global markets.

Offshore jurisdictions, man, they’re like the rebellious cousins of onshore counterparts. They’re all about keeping things simple and sticking it to the man. Plus, they offer some serious secrecy vibes and a total tax neutrality attitude. These badass jurisdictions make up half of the top ten most kickass places to do business this year. Actually, among a whopping 77 jurisdictions, those badass five—Jersey, BVI, Hong Kong, Curacao, and the Cayman Islands—dominate the top six like absolute legends.

The so-called perks of stashing assets in traditional offshore havens might as well be dead and buried thanks to the relentless crusade for transparency. However, we firmly believe that the offshore market will persist as a formidable force, captivating clients with their private fortunes and exclusive family establishments. These badass jurisdictions will keep delivering kickass specialized services and regulatory settings for our clients’ wealth management as the world becomes more transparent, leaving everyone else in the dust.

The decision-making criteria of those fancy private wealth clients in Hong Kong are going through some serious changes, man. Their circumstances might force them to lean towards a particular location, and let me tell you, it ain’t always gonna be a simple and boring choice. It’s all about breaking the norms, baby.

The Many Faces Of Family Offices

Family offices come in all shapes and sizes, each with their own unique organizational structure, clientele, and vibe. Yo, listen up, it’s hella important to realize that every type has its own badass perks and downsides that can either boost or screw over a specific situation.

Check out these five badass categories of family office solutions to wrap your head around: Edgy Family Offices (EFOs)In the wild world of family business or enterprise, you’ll find these badass family offices. Most of the damn time, the goddamn family’s wealth management needs in Hong Kong are handed off to those badass senior managers of the business and handled like a boss by the finance division. Families who crave that personalized touch in managing their wealth, but aren’t quite ready to commit to a fancy-schmancy family office, can totally rock this cost-effective alternative.

The whole asset ownership thing gets hella murky between the business and the EFO, man. Like, these EFOs are straight up embedded in the business, so it’s like, who really owns what, you know? Moreover, if the family’s wealth is hella substantial, an EFO might not even come close to satisfying the family’s insatiable hunger for baller wealth management. In these gnarly situations, one may wanna consider outsourcing to a badass multi-family office.

Bad Workplaces (BFOs)

Multi-family offices cater to the insatiable wealth management needs of countless ultra-high net worth families. Yo, check it. The families ain’t gotta stress ’bout all the boring operational and talent management crap, or the costs of setting up and running an MFO. That’s why most MFOs hire a squad of financial and wealth planning badasses. They offer pretty much the same services as a single-family office, but way cheaper, yo.

MFOs can also come in a freaking plethora of badass forms: Commercial MFOs reign supreme as the badass kings of the MFO world, fueled by their insatiable hunger for profit. They fearlessly offer their services to a diverse array of ultra-high net worth clients, who are lucky enough to bask in their presence. Exclusive MFOs, commonly known as clandestine MFOs, cater to a select few elite families who divvy up the expenses involved.

The biggest bummer about a multi-family office compared to a single family office has always been that families get shafted when it comes to having their own badass wealth management crew that caters exclusively to their unique needs. These days, a ton of badass MFOs are stepping up their game and offering kickass services and product solutions that are specifically tailored to meet the needs of the badass customers in Hong Kong.


Sickeningly Free Offices (SFOs)

If you’re a badass UHNW family that craves secrecy and wants to be the boss of your own damn assets, then you better get your ass in gear and set up annoying single-family office. Single-family offices are badass squads of elite employees who are meticulously chosen by the family to handle their unique demands for wealth domination. In addition to badass investment planning and execution, they also offer kickass real estate investing, hardcore accounting and reporting, tax compliance that will make the IRS tremble, and a whole bunch of other badass concierge services.

However, when it comes to SFOs, brace yourself for sky-high operational costs and a colossal startup investment requirement. Consequently, the badass owners of a single family office often team up with other ultra-high net worth families and transition to a secretive annoying MFO to slash operational costs like a boss.

Virtual Family Offices (VFOs). In a VFO, the family can bring in badass consultants to handle whatever gnarly service modules they need outside of the family office. Outsourcing employment ensures the family can tap into the sickest outside advisor of their choice, all while slashing the family office’s operational expenses.

If the damn family’s got assets under management (AUM) ranging from a measly US$ 20 to a badass US$ 200 million and they’re craving some serious control over their goddamn wealth management, but they ain’t looking to waste their hard-earned cash on the extravagant overhead costs of a snobby SFO, then a motherfucking VFO is the perfect goddamn solution. In a twisted VFO, though, the damn family will have to play messenger between the outside advisors. Since VFOs are all about that rebellious decentralized vibe, privacy becomes a hardcore concern, man. In order to avoid catastrophic failures, it is absolutely crucial to establish a badass technology infrastructure that guarantees impenetrable operations.

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