There are associations dedicated to single-family offices such as the Family Office Association and the Family Office Exchange. There are an ever-growing number of conferences for single-family offices. There are larger associations such as YPO that have established their conferences and forums for families with single-family offices or—at least—seriously interested in setting up a single-family office. All of this is due to the incredible increase in private wealth worldwide coupled with the realization that the family office model—compared to most other business models—delivers superior results.
The world of single-family offices is generally opaque by design. More than that, a sizable percentage of super-rich families with single-family offices prefer to be “invisible,” or at least, exceedingly difficult to observe. While they want extreme confidentiality, these super-rich families are looking to their single-family offices to do is optimize many aspects of their lives. Consequently, what these super-rich family members are looking for are industry best practices and opportunities.
For an increasing number of these super-rich families, the answer is secret conclaves. A secret conclave is just a very private meeting where a handful of single-family offices represented by family members and non-family senior executives meet to share openly. Sometimes, external experts are brought in to provide their perspectives and insights.
The fact that such conclaves exist is no surprise to anyone dealing with single-family offices, which is why I can write about them. Some people who become aware of these meetings have concluded they are examples of the Illuminati or the Knights Templar or the Hellfire Club or some other nefarious cable bent on world domination which are just conspiracy fantasies.
One of the self-made super-rich once pointed out that almost all the countries throughout the world are kakistocracies (the rule of the worst). She firmly believes it is impossible to effectively manage such unwieldy structures, in which governmental bodies are perpetually at war with each other and themselves. In her view, it is ludicrous to imagine a small group of individuals, no matter how great their genius, cleverness, and determination, actually administering such a morass.
Having attended a few of these meetings among different collections of single-family offices, it is clear from the conversations that such gatherings lead to positive changes in business practices. More importantly, they result in significant private investment opportunities. All the conclaves I attended were because I was approached by a family member, a single-family office senior executive, or a retained intermediary.
Without question, these secret conclaves are not about world domination, although world events are always a major consideration. They are much more about the best way to protect the family and grow the family fortune. They are about what can be done to create or perpetuate a family dynasty. Why I have usually been invited (and paid) has been to talk about how the families through their single-family offices can maximize their relationships with the professionals they engage thereby better ensuring superior results.
Without question, now a day, many of the super-rich are more guarded than ever with good reason. Still, they are looking for answers, resources, and investment possibilities. For an expanding number of them, the answer is getting together in small groups to share experiences, occasionally leverage external experts, and find ways to make more money.
Russ Alan Prince is the executive director of Private Wealth magazine and one of the leading authorities in the private wealth industry. He consults with family offices, the wealthy, fast-tracking entrepreneurs and select professionals. Connect with him on LinkedIn.com.