Family office insights this week:

• Why family offices almost always choose anonymity

• A job opening at Mark Zuckerberg’s family office

• Millionaires are on the move; the winning and losing countries

• Learn the playbooks that built the world’s greatest companies

• An interesting book on the intuitive survival signals

The Price of Fame

And why Family Offices choose anonymity

In the 1960s, the artist Andy Warhol predicted that everyone would have their 15 minutes of fame. With the explosion of social media, maybe he was right.

While half the world seems to be chasing their fifteen minutes, most family offices quietly avoid the limelight.

It’s been said that family offices are the only people who pay PR firms to help them stay out of the newspapers.

Fame can bring with it untold opportunities. Whether it’s own-brand tequila, energy drinks, or meme coins, celebrities can become very rich very quickly by lending their image to a product or service. Global markets can mean global rewards.

But fame in the modern world can be dark. It can be all-encompassing to the point of suffocation. Fame can put a target on your back.

With these risks in mind, family offices almost always choose anonymity. 

The Dark Side of Fame

Here’s why family offices often prefer to avoid the spotlight:

Tax Authorities 💸

The tax man cometh. And if you’re famous, you can bet he’s ‘comething’ for you.

Public Targeting: Tax authorities love to target famous people because it's newsworthy and makes for easy marketing. When a celebrity is caught evading taxes, it sends a message to everyone else.

Convenient Example: Famous people are a convenient cautionary tale, and tax authorities are not afraid to make an example out of them.

Celebrities may say, “that’s unfair.” The tax man will respond, “pay your taxes.”

Quiet Settlements: Contrast that to wealthy families with no public profile; tax complications are far more likely to be quietly settled out of court.

Privacy 🕶️

Fame can rob a person of their right to go about their life in peace.

Intrusive Behavior: Imagine going for a coffee and getting harassed by some citizen journalist with a camera phone, trying to leverage your position for their own fleeting fame.

If you are famously rich, that intrusive behavior can be worse as it can come with jealousy and expectation. “You’re worth THAT much and you are only tipping THIS?”

Media Scrutiny: The famous seem to be fair game for the media, from intrusive paparazzi to the spread of false information. A relentless lack of privacy leads many in the public spotlight to lead increasingly narrow lives.

Poor media coverage can really damage a family brand.

Attracting the Wrong Deals 📉

Wealthy families and individuals are continually being pitched to. It comes with the territory.

Irrelevant Inquiries: Family offices are usually small, closely-knit teams that carefully curate deal flow and contacts. Fame can open the floodgates to thousands of approaches, making the family office less effective.

Overwhelmed with information, the team may adopt a defensive stance rather than a proactive strategy, resulting in good deals slipping through the net.

Stalkers and Harassment 🚨

Public Exposure: Being famous means you're constantly in the public eye, and not everyone watching has good intentions. Stalkers and harassers can make life a living hell.

Family Threats: It’s not just the famous person who suffers; their family and friends can also become targets.

Cost: Private security is expensive. Harry and Meghan recently spoke of spending $3 million a year on security.

All families should feel secure in their own homes and one or two unhinged individuals can destroy that feeling of sanctuary.

Criminals 🦹‍♂️

Target for Crime: If you’re famous, it’s easy to become a target for both physical and cyber threats. With the rise of deepfake technology, famous people face a whole new set of risks, including identity theft.

Under the Radar: Keeping out of the limelight won’t guarantee you are not the victim of crime, but it means you can often fly under the radar.

Online Hate 🖤

Social Media Cesspit: If you're famous, many people see you as fair game. A throwaway comment can be interpreted as highly political, leading to online pile-ons and brutal attacks.

Mental Health Toll: Even the toughest characters have admitted that online hate can get to them, leading to anxiety, depression, and sometimes even worse consequences.

Political Targeting 🎯

Opportunistic Politicians: If a family becomes infamous in the media, opportunistic politicians will often start to target them, adding another layer of unwanted attention and scrutiny.

The Golden Side of Fame

But what about the upside of fame? Do the success stories make it worth it? There are countless stories of celebrities who have cashed in from outside ventures. Dwayne "The Rock" Johnson and George Clooney developed billion dollar tequila brands. Rihanna’s investments in beauty and cosmetics have helped her achieve billionaire status.

Fame opens doors that might otherwise remain closed. You get access to exclusive events, high profile collaborations, and lucrative deals. Whether it's brand endorsements, partnerships, or business ventures, fame can significantly boost your earning potential.

Leverage Effect 📈

Substantial Financial Gain: One of the most powerful benefits of fame is the leverage it provides. When you have a huge audience, you can turn that attention into substantial financial gain. Ryan Reynolds is a perfect example of this. He's leveraged his fame to create and promote successful ventures like Aviation Gin and Mint Mobile.

Instant Credibility: For UHNW individuals, their wealth and experience provide instant credibility. The opportunities for monetization are vast, from book deals and speaking engagements to product lines and media appearances.

Influence and Impact 🌍

Philanthropic Platform: Fame gives you a platform to influence and impact the world beyond just donations. Celebrities like Leonardo DiCaprio use their fame to champion environmental causes, while others like Oprah Winfrey focus on social justice and education.

Network Effect 🌐

Rubbing Shoulders: Wealthy people love celebrities. Having a level of fame means you rub shoulders with influential people. An expanded network can lead to collaborations, investments, and opportunities that might not be available to the average person.

Why Family Offices choose anonymity 🔒

In the end, while the allure of fame with its potential for substantial financial gain, influence, and networking opportunities is undeniable, the dark side can be overwhelming.

The price of fame includes constant public scrutiny, loss of privacy, and an increased risk of harassment and crime. Yes, family offices can hire a reputation management firm and take a proactive approach to build a legacy brand, but that’s a less common route.

Family offices rather choose anonymity to protect their privacy, ensure their security, and maintain the quality of their deal flow. They prefer to stay out of the limelight, quietly managing their wealth and making impactful contributions from behind the scenes.

𝕏 highlights

Millionaires are on the move.

Why family offices and family businesses are a natural match.

Bill Murray on wealth and fame.

 💼 where to work

Get on the rocket ship! Three family office career opportunities now open…

VP, Family Office Advisory - Iconiq Capital (Multi Family Office / California)

CFO - Prime Group Holdings (Family Office / New York)

Senior Manager, Family Office Services - BDO (Service Provider / Pennsylvania)

📚 what to read

The Gift of Fear by Gavin de Becker was recommended to me by a Twitter friend. With fame, you can become a target. But the book argues that humans possess an innate ability to sense signs of potential violence before they occur through intuitive fear signals, and to learn to recognize these "pre-incident indicators".

📻 what to listen to

I’m a podcast junkie, but somehow this had passed me by until this week. In Acquired hosts Ben Gilbert and David Rosenthal share the playbooks behind the world’s greatest companies. It seems I have 14 seasons ahead of me!

📺 what to watch

A one-minute watch - Eric Weinstein: Why you don’t want to be famous.

And finally…

Last week I asked where the US family offices are based.

New York and Texas came out joint top, but California and Florida were close behind. There were quite a few from other states, but no subscribers admitted to being based in Connecticut or Massachusetts! Is this true?!

This week I want to hear from APAC family offices. Hit reply and let me know where you’re based. This helps to make the newsletter more relevant.

That’s all for today, 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.

Wishing you an outstanding weekend wherever you are!

Until next week, see you on 𝕏 or LinkedIn

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