A family office can have a public presence without putting the family name and activities in public view. In this chapter, I explain why some families prefer privacy, what a public presence can offer, and how a separate office or holding company name can help.
Why families stay private
Many families do not want public relations or media attention. In some countries, being too public can bring more competition to operating businesses, kidnapping risks, new government regulations, or requests for bribes from public officials. Some families also prefer privacy because they did not build their wealth in public.
Those concerns are real. A public presence should be considered in light of the family's circumstances and the information it is willing to share.
What a public presence can offer
Being public can bring access to investment opportunities that a family might not otherwise see. It can also help build connections with peers, including industry leaders and other centimillionaires, and make it easier to find talent for the team.
A public profile may help a family office interact with deal intermediaries more quickly and credibly. It can also help the office learn about trends and practices earlier, and support larger investments by connecting with a co-investor or strategic partner.
Use an office name
In my experience, a useful approach is to create a family holding company or family office name for public use instead of using the family name. For example, rather than using "Wilson Holding Company," a family seeking more privacy could use a name like "Key Biscayne Family Office."
The website can be registered through a holding company and can omit private contact details. The chapter also describes keeping public records from connecting the generic name to the family name, to help shield the family from journalists.
Share enough to build credibility
If privacy is the only concern, addressing it may make some of the benefits of being public available to the family. Sharing current holdings on a website can make the office seem like a more credible counterparty or purchaser of assets.
The chapter cautions against sharing so much that people can identify the family. The goal is to present enough information to support credibility while keeping the family's identity private. Wilson says he has seen this approach help secure deal flow and provide faster access to valuable deals that might otherwise not have been open for review.
Action checklist
- Consider the risks of public attention for the family and its operating businesses.
- Decide whether a public presence could help the office find investments, peers, talent, or partners.
- Create a family office or holding company name for public use.
- Register the website through a holding company.
- Leave private contact details off the website.
- Share holdings only to the extent that the family remains unidentifiable.
- Consider whether the public profile helps establish credibility with intermediaries and potential counterparties.
From the book
"This is because in many countries, being too public can bring intensified competition to your operating businesses, kidnapping by criminals, new regulations by the government, or requests for bribes from public officials. "
"If privacy is your only concern in being public, then eliminating that concern opens up many benefits to you and your family. "
Educational only. Nothing on this site is investment, tax, legal, accounting or other professional advice, or a recommendation on any security, manager, structure or allocation. Speak with qualified professionals before acting.