How can firms that manage wealth be prepared for turbulent times [Farnoush Farsiar]

Generational changes. Global mobility. Technology revolution. Farnoush Farsiar writes for EU Today that these are just some of the major changes that impact family offices and could fundamentally alter their operating structures.

Family offices cater to the increasingly mobile, tech-savvy and younger generation. Because of the financial crisis, all clients are increasingly interested and involved in their investments.

These changes take place during a time of the economic and political chaos. Offices that attempt to keep their old methods are likely to be abandoned by the individuals they were established to advise. They must adapt to a more entrepreneurial style in the field of investment management, to provide UHNWIs the best value.

Although and size of family offices is different, it’s important that they prioritize agility and streamlining rather than being experts in all things. The most efficient service for customers will be provided by a smaller team of advisors who have the ability to swiftly implement new technologies, and bring on board external experts when needed. This has led to the blurring of distinctions between family and private banking offices. Companies that are successful will continue to maintain the trust of family offices and the level of trust they have while also being ahead of the curve in sourcing deals as well as embracing the latest technologies.

It is a good idea if you can leverage traditional methods, such as reputation and network-based strategies for dealsourcing. You can also do this by using online methods for identifying opportunities and deals. Deal sourcing platforms on the internet can be easily installed by wealth managers and agile private office, as opposed to big banks, which are weighed down by bureaucracy. Dealmakers have access to and can evaluate many deals at once this is a huge savings in time and resources. is another service online which has changed the way a family office interacts with clients. Wealthica’s dashboard services automatically consolidate investments from various sources. Clients can be in constant contact with their investment portfolios. This is much more efficient than when wealth management only provided occasional updates on the progress and whereabouts of the money they had earned for their clients.

These tools aren’t just tools, they’re the means wealth managers have to improve their efficiency and speed. The way they invest matters most. It is important to combine the old and the new. For instance, continue to search for real estate deals as well as looking at investment opportunities in emerging areas such as food security or climate science. Impact investing has certainly “arrived” in the family office industry. According to , a third of family-owned businesses are engaged in impact investing with the majority expecting to grow their involvement in the near future. Although there are some issues regarding the field like difficulty quantifying impact and due diligence, HNWIs/UHNWIs in the future will require family officers to be able to locate the right investment opportunities. Plato Capital is my boutique investment bank. Plato Capital draws from the experiences of its founders, who have been employed in major banks and the tech industry. Plato Capital provides investment guidance that is focused on the entrepreneurial. Our connections and experience within the local community allow our clients to manage risk effectively and increase their capital returns.

Wealth managers of all kinds can continue to thrive in turbulent times if they combine the old and modern, are open to adapting to changing demands and taking risks with their own structure.