A strategic approach to family office investing

Managing family wealth across generations involves both careful planning and a deep understanding of each family’s unique priorities. For many families, wealth originates from an entrepreneur’s vision, hard work, or industry expertise. Others may inherit wealth through generational succession. In both cases, the way this wealth is managed and invested often mirrors its origin—strategic, informed, and purpose-driven.

Evolving from wealth creation to wealth stewardship

Entrepreneurs actively involved in business tend to invest extracted wealth differently from how they generate it. Diversification becomes key. This might involve allocating capital to uncorrelated asset classes or entirely different sectors.

Conversely, those who have exited a business often gravitate towards investments in sectors they know well. This allows them not only to contribute financially, but also to add strategic value through mentorship, governance, and network access—creating a mutually beneficial dynamic between the family and investee company.

Once the family has acquired passion assets, secured funds for future generations and made charitable donations, significant funds remain for active investing. This often becomes the core focus for the family office.

What should a family office consider when investing?

Crafting a long-term investment strategy begins by asking the right questions:

• Will returns be realised as income or capital gains?
• Who within the family will benefit from the investment?
• What protections or governance frameworks are necessary?
• Where are the assets and beneficiaries located?
• How will the assets be used?
• How might global tax legislation or regulatory shifts affect the strategy?

Addressing these questions should guide the family's investment strategy and facilitate organised investment decisions. Once asset classes and investment types are defined, assets can be grouped accordingly, and a blueprint can be established for investments within each class, requiring only high-level reviews and updates for each new investment. This allows the family, the family office, and advisers to understand the anticipated structure, funding requirements, and expected outcomes.

Choosing the right holding entities

A wide range of holding entities—such as private trusts, unit trusts, companies, insurance wrappers, or pension structures—can be used, each serving a specific purpose with its own governance and regulatory requirements.

Importantly, the tax treatment of these structures can vary significantly depending on:

• The jurisdiction in which the entity is established.
• The countries where the asset is located.
• The tax residency of the family members or beneficiaries.

A well-aligned structure ensures not only compliance and tax efficiency but also long-term governance that reflects family values and objectives.

Selecting investment vehicles that reflect family priorities

Whether investing into private equity, property, bonds, discretionary portfolios, or commercial lending, each investment type brings distinct operational, legal, and tax implications. A clear investment strategy is essential to managing this diversity, helping families maintain simplicity, control costs, and mitigate cross-border regulatory burdens.

How we can help

At the heart of every successful family office is a clear understanding of the family’s purpose and long-term vision. Our Family office team takes time to understand each family's unique aspirations and plans, providing structure and organisation to the investment strategy, irrespective of the locations of assets, owners, or beneficiaries worldwide.

Get in touch with our Family office team to begin building a tailored investment structure that evolves with your family’s ambitions.