Family Offices

Examples of Specific Assistance Available to Family Offices from Investment Business Advisors LLC.

Family Office Sample Assessment Projects: 

  • Investment Education Needs (Initial & Ongoing)
    • Family Members
    • Principals
    • Supporting Staff
    • Investment Committee
  • Investment Staffing Model
    • Mix of In-house/Outsourced Capabilities
    • Aligned with Family Office Mission & Capabilities
    • Assist with Recruitment, Training and Succession Plans (as needed)
  • Alignment of Family Office Operating Business with…
    • Investment Policy Statement (IPS)
    • Asset Allocation Policy and Monitoring Program
    • Asset/Liability Matching
    • Risk Tolerance and Profile
    • Cash Flow Needs
  • Investment Advisor/Consultant
    • Roles & Responsibilities
    • Selection, Monitoring and Evaluation
    • Reporting to Family Office/Foundation Board and Staff
  • Investment Manager  Selection and Monitoring Program In Context of “Best Practices”
    • Overall 5 Part Comprehensive Due Diligence Program
      • Investment Strategy, Investment Process, Investment Team, Investment Committee Assessments
      • Fund/Account Vehicle: Constitutional Documents, Governance, Terms & Financial Crisis Lessons Learned
      • Management Firm:
        • Type, Registration Status, Constitutional Documents, Ownership Structure, Equity Sharing
        • Governance (Board and Management Committee)
      • Investment Process and Investment Business Management Processes/Best Practices/Workflow Analysis
      • Other Standard “Operational Due Diligence (“Ops DD”) Assessments
    • Review Current Managers
      • Assess in Terms of Family Office Criteria and Best Practices
      • Recommend Framework For Enhancements
      • Evaluate Results
      • Assist with Implementation of Approved Changes
  • Consideration of  “Alternative Investments” for Family Office Portfolios
    • What are “Alternative Investments”?
    • What are Key Characteristics?
    • If Alternatives fit…
      • What kind of Alternatives: hedge funds, private equity, real estate and commodities, and
      • Which specific alternatives strategies (e.g., global macro, equity long-short, event driven, relative value, distressed credit, etc.)
      • What size allocation?
        • What are key lessons to be learned from 2008-09 Financial Crisis
        • Madoff Ponzi Scheme and other Fund Frauds and Failures?
  • Effective Investment Oversight
    • Assess Current Effectiveness of Investment Oversight Processes
    • Determine Short-comings and Gaps
    • Plan and Execute Enhancements
    • Assess Results
      • Customize Based on Each Family Office or Foundation’s Needs, Context of Industry Best Practices
  • Monitoring Investments
    • Monthly and Quarterly Reports
    • Go Beyond “The Performance Numbers”
    • Focus on Other Qualitative and Quantitative Factors
      • Strategy Consistency
      • Style Drift
      • Portfolio Risk Profile
      • Liquidity and Use of Leverage
      • Holdings Turnover
      • Staff Turnover
      • Potential Manager Conflicts of Interest
      • Extent of Portfolio and Manager Transparency
      • Other Factors
  • Alignment of Family Office Investment Portfolios with Asset Manager(s)
    • Determining Alignment Based on Factors including:
      • Fund Strategy
      • Fund Terms
      • Co-investments of Manager/Portfolio Team
        • Material Co-investment (“skin-in-the-game”)
        • On Same Terms as Investor
        • No Special Liquidity Rights
      • Conflict of Interest Safeguards
      • Alignment of Firm Investment Strategy with Firm Business Strategy
      • Alignment of Compensation Program (e.g., structure, level of compensation) with Investment Strategy and Fund Terms)
      • Alignment of Performance Management Program and Criteria with Investor Interests
      • Criteria for Closing Fund and Alignment with Investor Interests
      • Etc.
  • Other Assessment and Implementation Projects Based on Family Office/Foundation Needs and Priorities

See Abstract and Table of Contents for White Paper Published on “Family Offices and Alternative Investments”