Raising capital from family offices
How Family Offices Train the Next Generation of Leaders
How Family Offices Train the Next Generation of Leaders
Family office principals, advisors and next generation members who want practical ways to involve younger relatives in family wealth.
Quotes from the session
"At the end of the day, you have to be able to look somebody in the eye, whether you're on Zoom or in person, shake a hand and be able to have an intelligent conversation."
"We teach the fundamentals: eye contact, having a smile on your face."
"If you look at it, kids' stuff is on TikTok, on Instagram. They already know what's going to make money. You just need to listen to them."
Summary
Respect for younger family members is the point this Beverly Hills Investor Club Summit panel returns to most. One guest says Gen 2 and Gen 3 often get too little of it, even though their beliefs differ from the first generation. She urges professionals to ask questions and speak to them as people, not as the least important people in the room.
The panelists also describe practical habits. One guest was taken to meetings, banks and attorneys' offices from a young age. Another family office brings its children to conferences and has them sit in on meetings. They are taught eye contact, a smile and no phones. Another guest says to ask younger members about portfolios and listen to what they follow.
On the record
- One guest's father passed when she was eight, and her mother was not well prepared to be a significant inheritor of wealth.
- One guest's two sons run her crypto and blockchain portfolio.
- One panelist has children aged 25 and 21, and another has a child about to turn 20 in October.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: How Family Offices Train the Next Generation of Leaders. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
5 key takeaways
- Start exposure at a young age. One guest was taken by her mother to meetings, the bank and attorneys' offices. She was used to that setting early and credits her mother for it.
- Treat Gen 2 and Gen 3 with respect. A guest says most people do not speak to younger generations with enough respect. Their belief systems differ from the first generation, but that does not mean they have no value.
- Find the value each person adds. Succession may not be the answer, since not everyone can run the company. One guest says many people can still bring value to the family if professionals take the time to find it.
- Teach basic communication skills. One family office teaches eye contact, a smile and looking at the person speaking. Phones are not allowed while the children are with them. They also wear the logo and greet people at conferences.
- Listen to what they already follow. A guest says children already know what is on TikTok and Instagram. She asks them what they think about portfolios and what they follow most. One guest's sons run her crypto and blockchain portfolio.
Related questions
- Do family offices co-invest alongside other investors?Yes, many family offices invest alongside other investors, and they often feel more comfortable when another respected investor is already in the deal.
- Do family offices invest in funds or only direct deals?Family offices do both.
- How long does a family office take to make a decision?There is no standard timeline, and I would not trust anyone who gives you one number.
Questions about this video
How do family offices involve the next generation early?
Panelists describe bringing children to meetings and conferences. One guest was taken to banks and attorneys' offices as a child. Another family office has its children sit in on meetings to see what a family office does.
What skills do these families teach younger members?
One family office teaches eye contact, smiling and looking at the person who is speaking. Phones are not allowed while the children are with them.
Why does respect matter when working with younger generations?
A guest says Gen 2 and Gen 3 hold different beliefs than the first generation but still have value. She says professionals should ask questions and talk to them like human beings.
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