In today's episode, we're discussing the growth of the family office industry and how its capital-centric approach has helped fuel its popularity. The family office has evolved into an industry on its own, with its own assets and rules that differ from those of public companies. As the world's economy shifts back towards private enterprise, the family office will continue to be a popular choice for families looking to protect their wealth and invest in their future.

Join us as we tackle the ins and outs as well as the new disruptors in family office you have to know. Listen in!

Key Highlights:

[00:01 - 10:07] Growth of the Family Office Industry

Bobby Stover is a partner at Ernst & Young, LLC and he is responsible for helping family businesses protect and grow their investments. He has spent over 27 years in public accounting supporting these businesses.

The growth of this industry can be attributed to a few reasons - (1) an increase in family offices and their role in society, (2) the global economic improvement, which has led to an increase in wealth among families, and (3) technology has played a significant role in the development of this industry, as it has made it easier for families to access resources and services.

Family offices believe that operating companies are a key part of their portfolio and that they can provide alpha returns.

[10:08 - 21:10] Recognizing the Tools, Tech, and Security Involved in Building Systems

Bobby emphasizes the importance of good governance in order to maintain a family business, and believes that qualitative issues are more important than quantitative legal structuring.

He also highlighted the importance of educating clients and employees about the changing needs of family offices, in order to maintain trust and keep family capital safe. One major concern for family offices is the lack of transparency around fees and what services are being offered.

The biggest seed change in cybersecurity is the end of building your own systems. This change has made it easier to integrate best-in-class systems and protect data.

Families should be aware of changes happening quickly in the world and be prepared to adapt.

[21:09 - 33:03] A Note on the ESG Performance in Directing the Narrative

Investors are looking for opportunities with higher returns and beyond just the traditional stock market. Companies that focus on environmental and social responsibility have become more popular as investors look for ways to increase their returns while also doing good in the world.

Family offices are becoming more high profile and are seeing increased liquidity events.

[33:04 - 36:36] Closing Segment

The trend of families is becoming more global and it boils down to assuring privacy and risk.

Key Quotes:

"When we look at the studies for external advisors, what the millennials and the Gen Z's are saying is, I want to know what my cost is. I'm willing to pay for things, but I want transparency into it." - Bobby Stover

"What do people want? When we think about ESG and those things that are coming up long-term value creation, number one, is easy access to my data, where I can see my total financial picture with better exclusive, more reliable digital services.” - Bobby Stover

Connect with Bobby:

Website: https://www.ey.com/en_us/family-enterprise

Linkedin: https://www.linkedin.com/in/bobbystover/

Connect with me on LinkedIn!

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