The global super-rich are composed of a cohort of families each with a net worth starting at $500 million. They are growing in number and in the amount of wealth they control. The global super-rich are constantly traversing geographies for profit and pleasure. They all have private jets, and many have yachts as well as homes in various countries.
The global super-rich are exceedingly attractive clients for a select and broad range of professionals—wealth managers, lawyers, accountants and a variety of lifestyle specialists. The cohort has a very wide array of personal and business related needs, wants and preferences.
Their situations are complex, necessitating the services of sophisticated professionals who are compensated quite well. While wanting to mitigate costs, they pay a solid premium for exceptional value.
Professionals use different service models to cater to this cohort; there are three basic models, with lots of variations. One of the basic service models is the single firm/multiple locations model. Some firms have offices throughout the world. This enables these firms to have local capabilities often in relatively close proximity to the global super-rich at any time.
Another basic service model is where the firm is part of a formal strategic network. An example of this is an international accounting network that gives an accounting firm, which is part of the network, access to local expertise throughout the world. This often enables them to serve the global super-rich just about wherever they are.
A third basic service model is for a firm to proactively establish strategic partnerships with similar firms in different parts of the world. For wealth managers, the use of outpost family offices is an example of this model. Professionals at one firm develop a network of aligned firms they can call upon. The connections are based on expertise and personal relationships between professionals—often, but not only, senior management—of similar firms in different jurisdictions.
This third model, where professionals create their own networks, is the dominant one in the private wealth industry. Because of the importance of global super-rich clients to firms, the need for a close relationship between professionals is often essential.
All service models are predicated on maintaining control over the engagement. Even when a firm outsources to experts in other parts of the world, the relationship is always maintained. There are no “hand-offs.” If anything goes wrong, the professionals at the firm with the client are responsible—even if it is the fault of those they are outsourcing to. They are the ones determining who should be involved in different geographies.
The bottom line is that professionals seeking to work with the global super-rich need to have the resources available to address their needs through the world. Firms can do this directly, but in most cases firms are selectively teaming up to address the needs and concerns of the global super-rich. This service model is the most prevalent, as it often results in superior outcomes.
Russ Alan Prince, president of R.A. Prince & Associates, is a consultant to family offices, the ultra-wealthy and select professionals.