AGILE FAMILY OFFICE

Jeff Bezos attributed corporate mortality to inflexible, non-agile business models.

According to McKinsey & Company, organizations with agile design and practices were 1.5 times more likely to financially outperform their peers and 1.7 times more likely to outperform on non-financial measures. AlphaMille is unique in its ability to translate the agile concept into the Family Office space through our extensive insider Family Office experience.

AGILE FAMILY OFFICE

We have developed a proprietary Agile Family Office Quadrant that underpins our framework for the open architecture platform connecting best-in-class partners for each capability. The AlphaMille team has decades of experience being trusted advisors to family offices around the world. AlphaMille taps into its network of global partners to deliver the best solutions to our clients. AlphaMille adheres to the highest standards of confidentiality.

Download the Agile Family Office White Paper and The Family Charter White Paper

Download the U.S. Family Office Technology Snapshot.

Look to AlphaMille to design and set up a new Family Office, update an existing office to the new digital standards, or guide you to the custom solution (embedded, virtual, multi-family, hybrid, etc.) that fits your needs. AlphaMille offers the Agile Family Office setup services for both individuals, VC/PE/Hedge Funds, and corporations. We also offer a conversion of a legacy FO architecture to the agile, dynamic, comprehensive, and cost-effective Agile Family Office™.


ALPHAMILLE AGILE FAMILY OFFICE BUSINESS ARCHITECTURE

Family Offices grapple with business complexity because of the variety of functions inherently involved in their business, the size of AUM notwithstanding. Below is a snapshot of representative functions, most of which can be efficiently automated.


AGILE FAMILY OFFICE SERVICES MAY INCLUDE:

Digital Identity

Federal, local, and state law enforcement agencies along with private organizations reported 3 million cases of identity theft in 2019. Money was lost in 25% of these cases. According to FBI’s IC3 (Internet Crime Complaint Center), financial losses caused by fraud are at their highest ever; the IC3 processed almost 500,000 complaints in 2019. In addition, the IC3 reported that business and personal losses in 2019 were almost $3.5 billion higher than in 2018.

We offer a comprehensive approach to protecting your digital identity that includes preventive cybersecurity measures and reputation management, as well as defensive social media trail scrubbing.

Philanthropic Planning

Our services span the gamut of:

  • Arranging introductions to national and international leaders in your field of interest

  • Connecting you to like-minded philanthropists

  • Securing leading consultants for targeted programs and projects

  • Handling compliance and administration

  • Optimizing tax benefits

  • Integrating income tax benefits with estate, gift and generation-skipping transfer tax planning

  • Designing charitable gifts to fit the client's overall objectives and financial situation, including outright versus deferred gift considerations

  • Selecting the right vehicle; a trust, public or private foundation,
    or charitable gift fund

  • Realizing the benefit of donating stock, rather than cash

Family Charter & Communication

Sustaining family unity and the impact of family wealth are overarching concerns of families that identify the need for creating a Family Charter, which can cover the following topics:

  • Mission/Purpose

  • Family History/Family Tree

  • Values/Philosophy

  • Family Council

  • Family Roles & Responsibilities Chart

  • Identification of Risks

  • Conflict Resolution

  • Next Generation Preparedness

  • Succession Planning

  • Legacy & Reputation

  • Philanthropy, Art & Culture

  • Diversification between the operating business and the family office

  • Investment Philosophy

  • Read more on the Family Charter and Intrafamily Communication.

  • More on Family Office Communication for family office professionals.

Family Office Setup

AlphaMille works with families to identify the type of family office that is the best fit (single family, multi-family, embedded, and/or virtual). At the onset, Family Office Capabilities and design of corresponding Family Office components are explored. During the first three months, we collaborate with the family to assist in the design of a business plan, a family charter, and an action plan.

Subsequently, AlphaMille assists with the implementation of the plan, which might include: talent acquisition, digital workplace setup, vendor selection, governance,  family communication strategy, and many other important capabilities.

Lifestyle & Security

When fifty family members arrive for the annual meeting at the same remote location in the Amazon jungle (or any other location of their choice), physical security becomes essential. We will help to arrange travel insurance, physical security, communication strategy, et cetera.

The same applies to hiring trustworthy and competent staff who have been fully vetted, having passed law enforcement checks, reference follow-ups, and other applicable security measures assists in ensuring families are protected.

Cybersecurity, cameras, tracking software and other security measures are also standard operating procedure.

Talent Acquisition & HR

We support the family office with strategies, tactics and processes for identifying, recruiting and retaining skilled workers to meet its organizational needs. This includes developing, implementing and evaluating programs for sourcing, recruiting, hiring and orienting staff as well as creation of employee Recognition and Performance Measurement programs.

Our comprehensive agile suite of services includes: advisement on employment law, communication, and diversity training. Design of a working environment underpinned by competence, productivity, diversity and tolerance assists with ensuring efficiency within the Family Office.

Payroll and Benefits Administration

Payroll services cover timely, accurate and compliant processing of the payroll, audit and processing of payroll documents, and maintenance of vacation and sick time records. Benefit Administration services cover benefit programs such as medical, dental, vision, disability, retirement programs (Defined Contribution 401(k) & Defined Benefit Plans) and Executive Benefits (457b & COLI), processing tuition reimbursements, I-9/e-Verify, retirement notifications, workers compensation and life insurance claims. Other services include employee on-boarding, vendor management (plan design, claims administration and appeals, COBRA, retirement administration, and HRIS data integrity), and many others.

Investment Policy

Investment policy provides the investment plan. It outlines return objectives, risk tolerance over a specific time period, liquidity requirements, tax considerations, regulatory needs and anything else required to manage the family’s money. Investment policy guides the decision making, serves as a guide for undertaking financial transactions and safeguards the family’s interests during market fluctuations. It also contains investment philosophy, which frequently involves requirements for impact, or ESG investments.

Investment Advisory Services

We provide advisory to families that are in the process of deciding between hiring their own investment staff, outsourcing it completely (Outsource CIO), or a hybrid model. The investment team is responsible for portfolio strategy, implementation, day-to-day management and operations. In a hybrid model, the family would establish portfolio guidelines and monitor the performance of the portfolio while delegating day-to-day portfolio decisions.

We help families choose the investment model that is right for them, assist in selecting and negotiating fees for potential investment advisors, or establish the Talent Acquisition strategy for an in-house team.

CFO and Treasury

We help Family Offices hire a CFO/Controller or outsource these functions
to a vetted service provider. The following functions are covered:

  • Bank reconciliations

  • Cash management and bank movements

  • Manage liquidity

  • Funding Capital calls

  • Managing distributions

  • Bill pay

  • Oversee credit card issuance, payment, expense classification

  • Oversee expenditures versus budget

IT & Operations: Portfolio Management, Accounting, CRM Systems. Investment Monitoring & Reporting

We help with vendor selection and system implementation of deal pipeline, CRM, portfolio management, accounting and other systems that help with:

  • Asset allocation analysis

  • Prepare subscription agreements

  • Private investments: manage commitments, capital calls, distributions, track redemption notices

  • Track performance for all investments

  • Performance reporting
    - Benchmark analysis
    - Peer analysis
    - Risk and return analysis

  • Secure web access to all reports and financial information

  • Compliance monitoring and reporting

Investor Accounting

We help Family Offices hire a CFO/Controller and accounting staff or outsource these functions to a vetted service provider. The following functions are covered:

  • Client access to reporting of real-time net worth

  • Customizable dashboards and reports for portfolio details

  • Track cost and tax basis for all investments

  • Investor level income and ownership reporting

  • Financial Statement preparation

  • Preparation of partnership, trust & company financial statements

  • Ad hoc services

Estate Planning

Creating an estate plan is a highly personal process that requires careful forethought, collaboration, and a true understanding of how each decision the family makes today will affect the next generation. The select attorneys in our network strike a careful balance between professional and compassionate, helping families feel seen, heard, and valued while providing the following services:

  • Estate planning, asset protection planning & special needs planning

  • Wealth transfer planning

  • Estate tax protection & planning

  • Oversee wills, Healthcare proxies, Power of Attorney and Trustees

  • Estate Checklist, Estate Online Document Vault & Gift Planning

Tax Planning & Compliance

We help Family Offices hire a Tax Accountant or outsource these functions to a vetted service provider. The following advisory services are covered: 

  • Entity Structuring

  • Income tax planning

  • Advising on legislative changes in Tax Law and the impact these changes have on the family’s wealth planning goals. ​

  • Charitable planning

  • Cross border consulting

  • Compensation planning

  • Expatriate Tax Compliance

  • Integrating income tax planning with its estate & gift tax planning.