Citi Private Bank Releases Comprehensive Guide for Successful Family Office Formation and Governance
January 31 2018 - 10:30AM
Business Wire
Citi Private Bank today announced the release of Organizational
Design, Strategic Leadership, and Governance Insights for Family
Offices: A blueprint for families, senior executives and
practitioners. Citi Private Bank’s Global Family Office Group has
experience serving over 1000 Family Offices worldwide, both new and
established, ranging from small to institutional. The comprehensive
guide draws on this knowledge to provide a framework for future
family offices in their formation and governance. The report is
authored by Bill Woodson, Head of the North America Family Office
Group and Edward Marshall, Director in the Global Family Office
Group.
The white paper presents and discusses some of the professional
practices adopted by established family offices to provide senior
family office executives and their principals with benchmarks in
three key areas:
• Organizational design and key service areas of family offices
as they pertain to the family office management company;
• Senior leadership positions, with a focus on job
responsibilities, skills required, success metrics and experience
needed; and
• Strategic, managerial and governance insights that help
navigate the unique dynamics that exist within every wealthy
family.
“The family office industry has grown tremendously over the past
twenty years as the number of ultra high net worth families and the
complexity of their needs has increased dramatically,” said Bill
Woodson. “This rise in the number of family offices has also led to
an increase in the breadth and sophistication of professionals who
are interested in working for these institutions, particularly at
the senior leadership level. As a result, family offices are
professionalizing at a faster rate than before and can experience
certain unique growing pains as with any other nascent industry,”
he continues.
Wealth-X estimates that there are approximately 15,000 families
globally at or above $250m in net worth and that these families
control approximately $13tr in wealth which represents
approximately half of all the wealth controlled by ultra high net
worth individuals globally. The Family Office Group at Citi Private
Bank surmises that the majority of these families either currently
has a family office or will move to such a structure in the near
future.
“In our experience working with family offices, we can attest
that while every family is different, the challenges facing all
substantially wealthy families are broadly similar and therefore
require similar solutions. The challenges that come with
substantial wealth are predictable and, as a result, many of the
solutions to those challenges can be identified in advance. This
solution-driven approach is what we hope to encourage through this
white paper,” said Edward Marshall.
The white paper covers a number of essential topics and
headwinds likely to arise within a family office and offers
insights on how to best mitigate. The paper identified those areas
where family offices are indeed different and warrant unique,
family-specific approaches in the governance of the family office.
The summary point being that understanding these areas and managing
for and around the preferences and proclivities of the principals
and their family members is how family office executives can truly
distinguish themselves and help the family be successful. The full
report can be accessed here.
Citi Private Bank is one of the world’s fastest growing private
banks; dedicated to serving worldly and wealthy individuals and
families, providing customized private banking across borders. With
approximately $460 billion in global assets under management, the
franchise includes 48 offices, serving clients across 116
countries. Citi Private Bank helps clients grow and preserve
wealth, finance assets, make cash work harder, preserve legacies,
and serve family and family business needs through objective advice
and a truly open architecture investment platform. The firm offers
clients products and services covering capital markets, managed
investments, portfolio management, trust and estate planning,
investment finance, banking and aircraft finance, as well as art
and sports advisory and finance.
###
About Citi
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and
services, including consumer banking and credit, corporate and
investment banking, securities brokerage, transaction services, and
wealth management.
Additional information may be found at www.citigroup.com |
Twitter: @Citi | YouTube: www.youtube.com/citi | Blog:
http://blog.citigroup.com | Facebook: www.facebook.com/citi |
LinkedIn: www.linkedin.com/company/citi.
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version on businesswire.com: http://www.businesswire.com/news/home/20180131005872/en/
Media:Citi Private BankSophia Stewart, 212-816-7140Global
Public Affairssophia1.stewart@citi.com
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