Preserve Family Office Generational Wealth building a self-sovereign bank: a bitcoin mining data centre

source: https://www.commercialsearch.com/news/family-office-investment-strategies/

INTRODUCTION

The case for Family offices to invest in alternative assets geographically distributed, that build infrastructure for the energy transition to offset Co2 emission, leveraging fixed-income new products that engage the rising generations, and keep families united with purpose through self-sovereign wealth

In this article, I have summed up UBS Global Family Office Report 2023, which surveys 230 single-family offices around the world, with an average total net worth of USD 2.2 billion.

The aim is to highlight, Family Offices' challenges, and needs, explaining how green data centers' turn-key solutions align with their investment strategic plans, for the next 5 years, allowing co-invest and club deals with peers following a growing trend among owner-families

As said George Athanasopoulos, Head Global Family and Institutional Wealth, Co-Head Global Markets at UBS. “While current market and geopolitical trends have prompted a shift to liquid, short-dated fixed income, 66% of family offices still believe that illiquidity boosts returns in the long-term and they’re looking to further increase allocations to alternatives like hedge funds, private equity funds and private debt to further diversify their private markets allocations.”

CONTEXT:

• Approximately 15,000 Family Offices around the world currently control $10 trillion in assets, surpassing the global hedge fund industry’s $6.5 trillion.
• Wealth Transfer: prepare for the unprecedented transfer of approximately $84.4 trillion from baby boomers to the next generation over the next two decades
• Family Offices will become the disruptive force in the private equity and venture capital sectors.
• Family Offices will play a Philanthropy Major Role in shaping the future of social impact.
• Family offices have confidence in hedge funds’ ability to generate investment returns
• (73%) believe that hedge funds will meet or exceed their performance targets over the next 12 months.
• 41% plan to raise private equity direct investments over the next five years.
• Family offices with private equity investments prefer to invest using funds (56%) as typically, they deliver diversification and can allow family offices to enter markets where they do not have in-house expertise.
• Family offices are cautiously planning to cut real estate allocations until interest rates remain high and will see a favourable lower evaluation

FAMILY OFFICES NEXT FIVE YEARS INVESTMENT PLANS

• strategic asset allocation for several years, with balanced portfolios
• fixed income is now the most popular source of diversification
• general reallocation from a broad mix of asset classes
• greater allocation to risk assets
• hedge fund allocations have risen to 7% from 4%
• direct private equity allocations decreased to 9% from 13%
• family offices also plan to reduce real estate allocations due to an increased allocation to private equity funds, private debt, and infrastructure

FAMILY OFFICE NEEDS

Preserving legacy through 3 functions:

• Managing the stability and performance of the family financial assets, supporting generational wealth transfer, and proactively protecting the family brand.
• A wealth succession plan is in place for family members but has not yet been created for many.

FAMILY OFFICES CONCERNS

• Geopolitical instability
• Everything can change quickly, government confiscates through taxation, inflation, interest rates, recession, and civil forfeiture.
• Banking System
• ESG compliance, climate change
• Asset protection and asset transfer to new generations
• Protecting reputation, maintaining confidentiality, increasing regulation, and reporting obligations are increasingly challenging
• Jurisdiction Risks, cyber threads, constantly evolving regulations, generational conflicts, emerging tech (AI), digital assets
• Supply chain disruption, future lockdown, CDBC

7 CORE AREAS OF FOCUS FOR FAMILY OFFICES

Mitigating taxes, estate planning, asset protection, investment, philanthropy, and educating the rising generation (family continuity), service/concierge-centric services

SOLUTION

The ultimate goal is to procure family continuity generationally across any and all challenges preserving their legacy which is vastly harder than making money.

• Building your own bank, a sovereign treasury, with insurance
• A turn-key solution that covers site discovery, sustainable energy plant, and data centre, hardware and operation
• With the support of a team of advisors: tax, legal, business strategy/plan, execution, custody, inheritance, family continuity plan
• With concierge service management and family continuity monthly performance reports and updates/progress calls.

BENEFITS

• Self-sovereign treasury strategy against geopolitical turmoil with no counterparty risk
• Drive business transformation, digital transformation, automation, and circular economy
• Fixed income, alternative assets, real estate, energy investment
• Potential tax advantages with hardware depreciation and sustainable energy investment
• Impact investment with benefits for the local community, environment Co2 emission negatives, no need to buy carbon credits, decentralization incentivizes resilience and security
• Transparency and self-custody foster the creation of a generational transfer plan
• Engagement of the new generation with investments that have a purpose and measurable ESG impact

RESULTS

• Wealth development building a legacy with purpose and resilience
• The ultimate goal is to procure family continuity generationally across any challenges preserving their legacy which is vastly harder than making money.

CONCLUSION

We are in the early stages of a geopolitical turning point. As in every early stage of a regime shift, great opportunities await. For investors, the most relevant questions are:

1. What will the new world order look like
2. How will the transition unfold
3. Where will the best opportunities arise

Family office Advantages: they are uniquely positioned to explore long-term unconventional or impact-driven investments

Bilioners buy banks and insurance…

85% of the success in your family office is dependent on its people. Families and their family offices can create a family office that is not only responsive but visionary, able to predict threads and capitalize on emerging opportunities

WHAT COULD BE WRONG

• Is your family safe, antifragile? How safe are your assets? How stable is solvent is your sovereign?
• What would happen if your sovereign assets and bank account were frozen or sized?
• If your dollar-denominated asset drops 50%
• If we have government lockdowns and no freedom of movement?
• Solar storms, nuclear war, derivates collapse
• Geopolitics, Economic depression in the West, the growing cost of capital, lack of talent to manage them

There should be a reason why billionaires buy banks and insurance…

If you are an accredited investor and want to evaluate either a site development investment, or hosting turn-key, or have specific requirements and questions, you can send me an email, or connect: https://linktr.ee/lauraspinaci_da

Connect on X — @lallispinaci; Linkedin — /in/lauraspinaci;