Family Fortunes
Building Legacy That Prevails
Our founder comes from a family rooted in over 600 years of recorded history. While the family fortunes might have oscillated as the thread of times untangled, the sense of responsibility for the principled maintenance of family legacy and name has remained unchanged through the centuries. Driven by this ethos and purpose, we help our private wealth clients build and protect their valuables as much as their values, passing the heritage through generations. Combining our in-house competence with world-class partners and institutions, we cover all the needs of the most demanding families, starting from intense and detailed planning of the family office structure and design, formulation of its mission statement which is to withstand decades and perhaps centuries, to execution of a tailor-made asset management strategy across asset classes and geographies within the tax-optimised, operationally efficient vehicle in a safe domicile of choice. Likewise, we assist already established family offices with their portfolio constructions and optimizations and we create and implement tailor-made strategies to meet their needs and goals.
Conversation
intense, detailed exchange to ensure mutual understanding and build trust
Mission Statement
anchoring the key vision and principles of the family office
Planning
designing a bespoke, optimised structure and asset management strategy to reflect the specific needs of the family
Execution
structuring of the vehicle in the domicile and form of choice and the implementation of the asset management strategy
Management
long-term, ongoing due care, service and advisory to the financial and other needs of the family
Succession Planning
ensuring an optimised process of handover of the family office to future generations
Model Portfolio
The model portfolio represents the proprietary interpretation of an optimised, balanced family office portfolio, with the possibility of adjustment toward growth or capital preservation based on the client's requirements. The core of the portfolio is comprised of our Serenity strategy, a global tactical asset allocation strategy with momentum tilt designed specifically for our family office clientele, offering unrivaled performance with limited volatility and drawdowns. The resulting composition offers an all-weather portfolio designed to outperform across various macroeconomic environments and keep an optimal balance between stability and growth to preserve yet develop the family fortunes across long timespans and market regimes.
Basic Statistics
Expected return
10-14% p.a. gross
Volatility
11-14% p.a.
Liquidity:
55-60% highly liquid, 40-45% illiquid
Correlation with broad equity market:
0.3-0.4
Maximum drawdown
18-25%
Real Estate
Private Equity
Alternatives
Serenity
Real Estate
Suggested allocation: 15%
Expected annual return: 15.9%
The illiquid real estate portion of our model family office portfolio is comprised of carefully selected funds with world-class management teams and proven track records. Leveraging our connections, we can provide access to these exclusive products that are typically out of reach, even for many institutional investors. Many individuals associate real estate solely with commercial and residential properties, but we believe that restricting investments to these categories fails to fully capitalize on current trends and the long-term potential of other sectors. This is why we have allocations in farmland, healthcare, real estate income, residential, and single-family properties. The portfolio's geographic allocation is divided among the USA, Canada, and the EU, with the USA representing the majority of the allocation. We analyse every segment of the portfolio in detail. For example, the farmland angle demonstrates very little or even slightly negative correlation with traditional asset classes such as equities and fixed income and is also relatively uncorrelated with other real assets. As such, it offers investors an excellent option to benefit from the positive effects of portfolio diversification. The global population is expected to peak in 2064 at around 9.7 billion while annually we lose 10+ million acres of arable land as a result of erosion, urbanization, and rising sea levels. This creates a clear supply and demand dynamic that positions farmland as a mainstay component of any real estate portfolio.
Canada
USA
EU
Farmland
RE Income fund
Residential
Healthcare
Single Family
Private Equity
Suggested allocation: 25%
Expected annual return: 15.3%
The Richfox Capital private equity allocation for our model family office portfolio is composed of several household private equity firms. Through our long-standing connections, we are able to provide exposure to world-class asset managers and their newest funds, which are often limited in subscription. These asset managers exhibit several competitive and comparative advantages as they have built up deep networks and industry knowledge that allow them to source exclusive deals. Our portfolio provides global diversification but is anchored in North America and Europe. Both these regions have stable and developed economies with established legal frameworks, which provide a favourable environment for private equity investments. Both Europe and North America have a mature private equity market, providing access to experienced investors, management teams, and other resources. Additionally, these regions offer a diversified range of investment opportunities across various sectors, including healthcare, technology, and consumer goods. With minimal limitations from a sector focus, we set up our portfolio with a heavy buyout weighting. With stable cashflows and established market positions, these late-stage buyout positions reduce the risk associated with early-stage private equity and venture capital investments. We do have an allocation in growth capital to capture the upside as they transition into established businesses and buyout/IPO opportunities.
North America
Asia Pacific
Europe
Other
Tech & Services - EU
Products, Healthcare, Services, Tech - Global
PE Fund of Funds
Global Diversified
Health/Dental - NA
Alternatives
Suggested allocation: 5%
Expected annual return: 5-10%
In every family office portfolio, we leave space for what we call "true alternatives", the investments that reflect the penchants and preferences of the family in question. In this section, we place investments in art, classic cars, antiques, and lately, digital assets. On top of the sentimental value and great dinner conversation topic, they often provide an interesting uncorrelated alpha potential which mildly diversifies the overall portfolio further. We have carefully selected a list of trusted partners across these true alternatives which we offer to UBOs and family office founders on an ad hoc basis whenever we formulate the family office strategy concept, usually based on our intimate knowledge of their inclinations and areas of life they enjoy the most.
Serenity
Suggested allocation: 55%
Expected annual return: 11.7%
The Serenity strategy has been developed specifically for the public market investment needs and the requirements of our family office clients. It optimises for lower drawdowns and volatility relative to equity indices to protect the family office allocator's peace of mind, while preserving an attractive upside and alpha generation potential. More on the Serenity strategy is available in the dedicated section below.
Serenity
Suggested allocation: 55%
Expected annual return: 11.7%
The Serenity strategy has been developed specifically for the public market investment needs and the requirements of our family office clients. It optimises for lower drawdowns and volatility relative to equity indices to protect the family office allocator's peace of mind, while preserving an attractive upside and alpha generation potential. More on the Serenity strategy is available in the dedicated section below.
Serenity Strategy
When "Boring" No Longer Means "Underperforming"
The Serenity Strategy has been developed specifically for the public market investment needs and the requirements of our family office clients. It optimises for lower drawdowns and volatility relative to equity indices to protect the family office allocator's peace of mind, while preserving an attractive upside and alpha generation potential. Serenity is a fully systematic, robust, all-weather strategy that combines our proprietary momentum models with global tactical asset allocation, adjusting weights between asset classes fluidly as the market regimes evolve, avoiding large drops and assertively taking advantage of major bull runs. Under regular market circumstances, the portfolio will consist of a globally diversified selection of exposures to equities, bonds, commodities, and REITs. With a Sharpe ratio of almost three times that of the world equity market, we strongly believe that our Serenity Strategy provides an attractive public market solution to even the most demanding family office. However, we are always ready to walk the extra mile and create a bespoke adaptation, skewed more toward growth or capital preservation, based on your specific preferences.