Deidree Bain, Director at Suntera Private Office, gives her insights as to what is on the horizon for the family office landscape across the Caribbean and Americas region…
The last few years have seen a sustained period of economic and geopolitical instability, which has to varying degrees left no region untouched. In the Americas specifically, the US presidential election is looming large, with the consequences of a potential change in tide creating ripples in the market and social stability.
Such an anxious undercurrent naturally increases the currency of stability and this is no different in the private office space where we are seeing greater emphasis on providing solutions for the wealthy families we work with from and with jurisdictions that can offer security, certainty and predictability for the foreseeable future.
Meanwhile, although investing into sustainable and impactful endeavours continues to be front and centre for many families of great wealth, in the Americas we are seeing increasing interest in the diversification of asset classes, in particular with regards to art, collectibles and cryptocurrencies - especially where investments are made through exchange traded funds offered by banks.
Notably, this has expanded the role of those family offices as they engage in a more focussed approach to philanthropic activities.
One of the key ways in which we are supporting families through our Private Office expertise is with their succession plans and the increasing role of the NextGen who, more and more, are engaging with decision makers as part of family governance processes and meetings, even if initially this is only in an observatory capacity.
Interestingly, we are seeing some families in this market creating specific NextGen committees, cutting their teeth by making decisions at a smaller scale, or encouraging entrepreneurship by supporting new business ventures tied to the family operations as a whole. Tactically, combined these moves will play a valuable educational role, and go a considerable way in preparing this generation to take over the helm in due course.
And, while the symbiosis between the NextGen and a greater emphasis on ESG strategies has been greatly discussed, it is also serving as a tool to share and teach family values, ethical considerations and societal impact while galvanising a sense of collective purpose across the family. We are seeing how opening up those sorts of conversations is playing a really valuable role for families in the region.
This positive impetus is not without challenges, of course - which, as mentioned, for the next twelve months at least are centred around uncertainty at a political and regulatory level. For instance, in Brazil, some families of great wealth have been left unprepared and are now having to work through tax changes that were widely believed to be unlikely to see the light of day.
In this regard, Suntera Private Office can play a vital role in supporting the families it works with to protect their wealth from sudden volatility. While we cannot change the world we operate in, we can steer those families strategically and carefully through complex times to safeguard their wealth for generations to come, while supporting meaningful investment for all.
To discuss our tailored solutions for your family’s future, please contact Deidree Bain, Director:
DIRECTOR, SUNTERA PRIVATE OFFICE