Family office insights this week:

• A deep dive on captives vs. commercial insurance for family offices

• Would you move to a ghost town for 0% tax?

• Read how the next gen can find their purpose and responsibility

• Senior level family office jobs in California, Iowa and Illinois

• Another great family office podcast to add to the rotation

How Family Offices are rethinking Risk

This week it’s a detailed look at captive and self-insurance in family offices from Twitter friend and insurance expert Skylar Romines.

Insurance is an important consideration for family offices.

The use of captives and self-insurance is also rising in popularity: a captive is an insurance company that is owned and operated by its stakeholders.

Many family offices are exploring captives, especially as they expand their asset bases and face increasingly complex risks.

This trend is partly driven by dissatisfaction with rising premiums and reduced capacity for coverage in the commercial insurance market.

Others seek tax advantaged solutions or value having a higher degree of control of their own program and loss payouts.

Surveys of family offices generally indicate that up to 30% of larger family offices (AUM of at least $1 billion) have considered or are actively using captives.  

All forms of alternative risk financing require more ‘skin in the game’ as opposed to the traditional insurance market and can be structured creatively based on each family office’s needs.

Thus it is typically wise to determine the desired level of Risk Retention, and then weigh strategies for Risk Transfer above that layer.

Uncover the common types of alternative risk transfer and alternative risk financing, as well as key considerations that make alternative risk financing attractive and more in this piece by Skylar Romines of ATW Advisors.

Read the full piece on how family offices are rethinking risk here.

This newsletter is sponsored by eHoldings

eHoldings is a privately held Canadian corporation that exclusively manages its founder Mike Cautillo’s proprietary capital and assets. It was created to satisfy its own niche, to grow and preserve wealth over the distant future via its unique position trading investment strategy that leverages actionable price action behaviors and fundamental market trends.

eHoldings has over the years made its insights available to accredited investors, which included facilitating exposure to Bitcoin. The company is now particularly focused on bringing its strategy to family offices through bespoke collaboration. See e-holdings.com for more.

𝕏 highlights

Malaysia is reaching out to family offices, but would you locate to a ghost town for 0% tax?

The US election is not far away. Here’s the UBS view on the potential impact.

Family offices are moving to more aggressive risk on opportunities.

 💼 where to work

Three notable family office job opportunities currently open below.

Chief Financial Officer - Private Family Office (California / Single Family Office)

Head of Family Office - Kraus Family Office (Iowa / Single Family Office)

Director of Client Development - Northern Trust (Illinois / Service Provider)

📚 what to read

Inheriting wealth comes with emotional and psychological challenges. In The Voice of the Rising Generation: Family Wealth and Wisdom by James E. Hughes Jr., Susan E. Massenzio, and Keith Whitaker explore how the younger generation of affluent families can find their voice, purpose, and responsibility in managing family wealth and legacy.

📻 what to listen to

The Mack Podcast, hosted by Brian C. Adams of Mack International - a top-tier family office recruiting firm - is a must-listen. I caught up with Brian this week, he’s smart, knowledgeable and a great guy. I quickly burned through all three episodes. The show focuses on wealth management trends and family office leadership, offering insightful discussions for industry professionals. I can tell this will be part of my weekly routine!

📺 what to watch

The Parisian Agency on Netflix is the French Selling Sunset - spectacular homes, stunning scenery and a beautiful window into French culture.

And finally…

It’s been a while since we had a family office profile. If you would like to feature in a future newsletter, either anonymously or not, drop me an email.

Lots of interesting topics in the pipeline including careers, deals, how funds should raise from family offices, opportunistic deals, conferences. But if there is something you would like to hear about, just let me know.

Family Office Buzz will be back on Monday (here’s the last edition if you missed it) with more of the best content on family offices and beyond.

Until next week, see you on 𝕏 or LinkedIn

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