To solve the challenge of best practices for governance, we drew from our experience, as well as the experience and research performed by the Family Office Exchange (FOX) to better understand the governance requirements and common issues that families and Family Offices face. While each governance structure is unique, it is critical that it contributes to aligning the Family Office mission with the vision and family values of the Family, provide for effective engagement by Family members, provide effective communication strategies within the Family Office Teams and Family members, and contribute to effectively resolving conflicts within the Family and the Family Office Team.
We believe that effective Family governance will draw upon existing Family members, groom future generations of leaders through an “Heir Conditioning” and processes focused on family member education, and leverage off of third party expertise. Clear guidelines and policies, as well as processes for decision making are built into the Entole infrastructure during the onboarding process. These policies and procedures should then become a part of the ongoing review and updating process as Family members’ skills develop to enable them to assume greater responsibilities within the family governance structure.
We encourage families to strongly consider the adoption of the Single Family Private Trust Company (PTC) model. Depending upon the nature of a family’s investment practices and the location of the PTC, an unregulated or regulated model may be preferred. We are prepared to consult directly with the various stakeholders involved (internal within the Family, Family Office Teams, and external legal, tax, and financial advisors) in the implementation and design of the PTC. (Where appropriate and helpful, families may also call upon our affiliates, Grupp Digital LLC, The Grupp Law Firm PLLC, and Grupp Financial LLC, for assistance).
By coordinating our efforts with all stakeholders, we work to improve your outcome so that an appropriate vehicle is implemented, a vehicle designed to enable families to preserve and develop their assets. And by assets we intend to denote both the particular human capital embodied in the next and subsequent generations of each Family, as well as that Family’s actual financial assets. It is very important that the governance structure regards both in a unified whole. During the Entole implementation we will tailor fit activity sets to support the governance structure defined by your Family’s wishes and requirements. In this manner your Family can be confident that it will have a robust governance structure with built-in best practices that deliver and measure Family Office governance success.