To preserve, administer and grow their fortunes, public figures and ultra-high net worth families often pool their liquid wealth. For this purpose, they have a specialized Family Office with a range of responsibilities and duties—such as investing capital and managing financial affairs.
But when it comes to a family’s hard-earned money, leaving everything in the hands of an issuer, private wealth management firm, syndicator or fund and forgetting about it doesn’t sound effective, does it? All matters of economic transactions require transparency to ensure that informed financial decisions are made. But what does transparency mean for a Family Office, and why is it so important?
Transparency—the path to increase Family Office investment through trust
In terms of Family Offices, transparency refers to the access given to see the details of every financial investment and transaction along with full operational insight. We believe that transparency should be the core philosophy in engaging Investors, especially Family Offices you are approaching. Why? For one, transparency builds trust and brings Principals up to date with a full picture of risk, reward and everything in between. It also provides confidence in fiduciary responsibility and enhances the bond with those charged with managing assets.
When an Issuer’s operations are transparent, it helps the Family Office track their investments, oversee their portfolio, risks, activities, trends, and more. To verify if the goals are being met, Family Offices often demand a 3rd Party Diligence Report to have a certified and organized representation of past, present and future insights across an Issuer’s entire operation.
When we speak of transparency, we do not limit it to assets and management. It is equally essential to be transparent about operations in the office. Transparency for the Family Office investors enables internal checks in the workflow, which helps identify mistakes and expose risks.
With transparency, not only will you have better control over your operations, but you will have a holistic view of your business’s health so that the Family Offices you approach can easily assess and go from Know to Like to Trust, as quickly as possible.Family Office Investment Management SoftwareInvestor Management Softwareprivate investor management software