The Sherpa Update
The Sherpa Update
Family Office Technology – I was on a recent KPMG webinar covering family office technology. One of the main topics being the cost vs benefit analysis for executives as they speak to principles about improving their infrastructure.
Embedded Family Office – the biggest use case for improved investment governance and strategy is the “embedded” family office. Often a portfolio of investments that sit within the operating business that lacks specific return and risk expectations and becomes a side of the desk role for staff.
AI as a Family Office Daily Tool - What's been missed in the noise surrounding AI is how incredibly effective it is as a daily tool right now. It's being used by Family Offices and that's what I'm discussing in this episode of the Family Office Sherpa Podcast.
One of the biggest tips from those using it already – beware noise vs signal when researching and get some training on prompting as it has exponential benefits.
Virtual Family Office – lots of advisers are talking up the idea of a “virtual” family office. I can see why they like the structure as described in this article because it gives them a reason to be maintained as the office decide on the number of services it will provide. Not sure if you can just rent the CIO as mentioned, and when did we start changing the name from outsourcing to “virtual”?
Investment Reporting 101 – Jan Voss has provided an excellent primer for anyone considering their base case for reporting and how they should set it up.
Family Office & Private Credit – this article quote sums up some of my recent family office conversations when it comes to private credit managers: ““We don’t need to invest through the sort of generic private credit fund managers, we have the resources, expertise and the network to do a lot of private credit-type transactions ourselves.”
The article notes a Prequin survey on fund searches and points to the peak for family offices came in 2023. There’s another quote that I will be using notes the return vs risk challenge in this asset class: “If a private credit fund earns a 20% return, I think they may have taken too much risk. When a private equity fund earns 20%, I look at how that fund compares to other peers. There’s no cause for alarm.”
Family Office & Universities – I met with the head of the finance department at a local university the other day as I wanted to know if they were considering including a family office module or were interested in the sector’s needs. Where the Booth school goes, hopefully others follow.
Sherpa Subscription Link – for those not already on this Sherpa newsletter list, you can join here.
Hall Road (free) members area link – for those looking for the article library.
Sherpa Podcast – you can find all the episodes on Spotify or Apple Podcast.
Cheers,
Shaun
Hall Road Investments
ABN 61 621 299 269
T: +61 (0)403 289 937
Hall Road Investments Pty Ltd is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Capital Pty Ltd (AFSL No. 499882). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors
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