Investcorp hosts family wealth management conference

A series of presentations and discussions covered key issues including trends in wealth management and private equity, financing the growth of family businesses and the evolution of the single family office.

Gary Long, Investcorp's Chief Operating Officer, welcomed the delegates, pointing out that the robust economic growth in the GCC had created tremendous wealth and provided exceptional growth opportunities for family businesses: "Many families across the Gulf are now asking two questions," he said. "These are, first, how can they manage their wealth more effectively, especially given an overabundance of wealth managers, and, second, how can they grow their businesses to take advantage of the regional expansion?" The conference was designed to assist delegates in addressing these issues.

Two presenters from the Boston Consulting Group, Christian de Juniac, Senior Vice President and head of private banking and asset management, and Dr. Sven-Olaf Vathje, Vice President and Director, described the market, highlighting that investors in the Gulf region were increasingly turning to alternative investments as part of a balanced portfolio and that their allocation to alternatives was growing at a rapid CAGR of 21%.

Delegates were particularly interested in their descriptions of behavioral differences among wealthy investors and how they could be divided into three categories: 'self directed', 'participative' and 'delegative'. 'Self directed' investors preferred to manage their assets actively themselves and looked for a broad product range, quick access, and accurate execution; 'participative' investors relied on good investment advice customized to their personal circumstances; while 'delegative' investors depended heavily on banks and asset managers and valued solid net performance more than any other factor.

Dr. Raphael Amit, Robert B Goergen professor of entrepreneurship at the Wharton School, and Chairman of the Wharton Global Family Alliance Executive Committee, talked about a range of methods used by families to finance the growth of their firms without losing control of their family businesses. He provided real-life examples of families from around the world who had chosen different alternatives to grow their businesses. Todd Millay, Wharton Global Family Alliance Executive Director, spoke about the evolution of the single family office.

Christopher O'Brien, head of Private Equity and Real Estate at Investcorp, gave his view on private equity investment trends and discussed returns, manager selection and the increase in allocation to alternative investments.