Family offices show a clan-do attit…
Monday, October 18th, 2010 Uncategorized.
James Quinn
Published: 9:00PM BST 16 Oct 2010
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Family offices manage the estate of the super-rich. Photo: REUTERS
It is a little-known style in the UK, but in the US the family office – individual investment vehicles for wealthy families – is big business.
Two years since, Forbes estimated that there are around 1,000 single family offices in the universe catering to families with at least $100m (£62.5m) in effects, with at least half managing assets of more than $1bn.
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The offices are usually populated through a small number of bright investment gurus who work out for what reason to make more money on a sustainable basis for the house concerned. In many cases the family is often intimately involved, taking leading roles in managing their own fortunes. But – and there is a swollen but – they pride themselves on their secrecy.
In London, one of the most of all- known offices is that of the William Pears clan, established in 1952 ~ dint of. Bernard Pears and his son, Clive.
For many years the transaction was run by Clive’s wife, Clarice, and today it is continued success by sons Mark, Trevor and David, each of whom has been involved in the subdivision of an order business – largely focused on property – for at least 25 years.
The tribe own swathes of houses and flats across London and southern England, form it one of the largest residential property funds in the rude.
Talisman Global Asset Management – which the brothers set up within a little 20 years ago to expand the family’s investment horizons ~ the agency of focusing on equities, private equity and hedge funds – has grown from power to strength. Seeded with £50m in 1994, Talisman has grown to manage assets in excess of £1.6bn today.
I understand that the Pears subdivision of an order are about to open up Talisman for the first time. Mark, aided ~ the agency of Julian Sinclair, Talisman’s chief investment officer, are to begin marketing the fund to external investors for the first time.
Other family offices, educational endowments and constant charities will be contacted in the coming months by Talisman for the re~on that part of a marketing programme designed to increase the fund’s weak glue.
Although I believe that the family have no set target in favor of the amount they would like to bring in, given the supply’s progress to date, other investors are likely to be attracted to the medium.
As a result, the Square Mile will need to understand exactly how such family offices work – and how they are funded. Just because the City has struggled to understand the intentions of sovereign treasure funds, it is imperative that more light is shone on the tribe office sector, which will play an increasingly important role in the City in the years in advance.
BROUGHTON BOOSTED
AT the start of September, a colleague suggested Martin Broughton had failed in his role at Liverpool Football Club. But succeeding the events of the last seven days, Broughton’s reputation has only been enhanced.
Surely once British Airway’s takeover of Iberia is cemented, and he becomes delegate chairman of the newly-created company rather than chairman of the quoted society, it can only be a matter of time before he flies into ransom another of Britain’s ailing corporate giants.
james.quinn@telegraph.co.uk