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Family Office – THE FOUNDER EXITS, A FAMILY OFFICE IS BORN

After the wealth-creating sale of an EU technology company in 2000, the founder and father of three siblings decided to launch a family office. Its primary mission: preserve the family’s wealth. Three years later, and still imbued with the spirit of enterprise, the family revisited the family office’s mission and agreed with the investment committee’s recommendation to invest some of their money in new ventures, acting as
venture capitalists, some with private equity partners and some in income-producing and wealth-preserving commercial real estate. It bears revealing that in the three years preceding the creation of this new family
enterprise, the family office, members of this leading family wrote and signed a family constitution prescribing the nature of the desired family-wealth-enterprise relation going forward.

The founder restructured the family council to include three independent outsiders so that the family council could act as a family board, when in session about business, ownership and investment matters. He then hired a key non-family professional to replace the interim family member
director of the family office and, with his assistance and the assistance of several investment advisors and family business consultants, created a sophisticated family governance structure. The family office was tasked with wealth management, risk management, client services, tax planning, administration, and investment services. The family office reports to the
family council/family board through its nonfamily director/ CEO.

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