A certain prestige comes with being a senior advisor to a wealthy family. A family-office leader has the ear of powerful clients and is entrusted with sensitive information known only to a select few.
But it can be a lonely calling. It can be tough, for example, to network with peers in a field that discourages open discussion of work matters.
“You’re in a profession that requires you to be fairly discreet and protect the confidentiality and privacy of the family you serve. There are few places you can get together to discuss best practices with your colleagues,” says Varugis George, president of Cambridge Executive Connections, a Toronto-based learning and networking firm that serves family offices, institutional investors and advisors.
James Dunne, a family-office advisor with Markdale Financial Management in Toronto, notes that in a single-family office, “you’re working with the people that you’re serving, so it’s a different kind of relationship. You have to create opportunities to meet with colleagues and share best practices.”
For his first decade in his family office, Dunne worked mostly alone with the help of a part-time administrator, he says.
“This was a big change from my previous career at ScotiaMcLeod, where I enjoyed meeting lots of colleagues. I learned quickly after leaving Scotia that it was a lot harder to stay in touch with those former colleagues. It can get lonely.”
Steve Ivacko, partner with MNP’s family office services in Vancouver, says the situation often depends on how visible the family wants to be. For instance, those with a focus on philanthropy or private equity investment may be comfortable with a different level of public visibility than those who operate quietly in other spheres.
“Some families are very open and transparent and out in the world; others are very much under the radar,” he says. “When the rising generation gets to a certain age, the kids may want to be more out there.
“The family office needs to evolve, but you still need to balance security and safety.”
Senior positions can require an unusual mix of personality traits that correspond to the family’s needs, Ivacko adds. Some will look for “someone like myself, who is an extrovert as well as an introvert. Whereas someone who is a little more low-key and doesn’t want to do all that schmoozing would be better suited to a family that wants to stay under the radar.”
Ivacko notes that many people enter the single-family office space from law, accounting or investment firms. “They’re working with the family for a while, and then the family wants to bring them in-house.”
This move, however, might require an adjustment to more isolated working conditions.
“To work in the family-office sector, it helps to be a self-starter,” says Dunne. “Since many family offices have a small staff who often work from home, it helps to be comfortable working remotely. In fact, family offices are good for those who prefer working remotely with only occasional in-person interactions.”
In a typical business, a boss manages the employees, he says. “But for many true family offices, the work is a way of life, and managers are often other family members. Family-office employees need to be comfortable navigating family dynamics, personalities and emotions in a flexible way that accommodates all stakeholders.”
One way for family office leaders to network and socialize is through invitation-only events. Cambridge Executive Connections, for example, hosts private events catering to CEOs of single-family offices.
“Cambridge convenes these meetings for family office CEOs in Canada, Europe and South America. Members view these as valuable, trusted peer groups that offer counsel, inspiration and the opportunity to build long-term relationships,” says George.
“The confidential and intimate setup and a nomination process that is driven by an advisory board of family offices are what define these forums and turn them into communities.”
Another channel for family office practitioners is professional organizations.
“There are organizations like Family Enterprise Canada, which works with professionals who work with families,” says Ivacko. He also cites the U.S.-based Family Office Exchange (FOX) and the Chicago-based Family Business Consulting Group, which offers online resources and webinars to the consulting community.
James Dunne encourages “getting involved with organizations where you can share best practices with people who do the same things that you do.” Two examples, he adds, are Philanthropic Foundations Canada (PFC) and CREO, the New York-based charity that helps direct high-impact capital toward sustainability initiatives.
“One organization I’ve been involved with for about 15 years is the Canadian Association of Gift Planners,” Dunne says. “About 75 per cent of the membership are gift planners at large charitable foundations, but the other maybe 25 per cent are professional advisors—investment advisors, insurance advisors, lawyers, accountants.” These peers provide a valuable and discreet sounding board for professional discussions, he adds.
Advisors can also connect with other family offices in working groups focusing on projects with shared goals.
“I’m a member of several working groups on a variety of topics ranging from things like shareholder engagement to impact investing,” Dunne says.
“Maybe one of the hardest parts of working in a family office is that you need these ‘soft skills,’ but also you have to keep track of the numbers,” he adds. “You have to be detail-oriented but also skilled in communication, so it’s a delicate balance.”
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