Family Office Case Study

Weekly Tools for Family Offices & Cash positive Businesses to Escape scenarios beyond your control and Build Generational Wealth

  • WHY Sustainable Data Centers are a solution

  • Family Office macro Market insights  

  • Family Office Needs & Focus

  • Family Office status checklist

  • Solution & Benefit  

 

Introduction

Family Offices need to build a self-sovereign bank to preserve generational wealth against geopolitical turmoil and inflation, in line with impact investing principles, and the energy transition, net-zero 2050 challenge.

What they should consider

Investing in geographically distributed alternative assets, such as sustainable data centers, building the decentralized infrastructure necessary for energy transition, Co2 negative. This can be achieved by leveraging passive income digital assets that captivate new generations and unite families, with a sense of purpose and philanthropy.

Compared to traditional ones, Sustainable Data centers utilize renewable energy due to their high energy demands from complex computations. They are often situated where energy sources are most economically, and environmentally sustainable. Visionary data center developers add value to the communities where they operate, employing a common-sense, win-win strategy. This aligns with the well-known Triple Bottom Line sustainability framework, which gauges a company's success in three areas: profit, people, and the planet, paralleling the principles of impact investing

Today Family Offices have the opportunity to solve real-world problems. They need people and organizations that can trust, with track records of delivering results, with common values, and willing to provide a safe place where to learn how they can build their legacy, solving real-world problems. 

  • A Shift in Focus: Many family offices, especially those representing next-generation wealth holders, are driven by a desire to make a positive impact on the world.

  • Solving Real-World Problems: This translates into actively seeking opportunities to address pressing global challenges, whether it's climate change, poverty, healthcare, education, or sustainable development.

  • The Need for Trusted Partners: Family offices understand that they can't achieve these goals alone. They need to collaborate with organizations and individuals who share their values and have a proven track record of success. Trust is paramount, as is transparency and accountability.

  • A Safe Space for Learning and Growth: For many family members, particularly the next generation, involvement in impact investing and philanthropy is a learning journey.

  • Building a Legacy: Ultimately, many family offices see their involvement in solving real-world problems as a way to build a lasting legacy that goes beyond financial wealth. Aiming to achieve and manage:

    • The stability and performance of the family's financial assets

    • Supporting generational wealth transfer

    • Proactively protecting the family brand

Family Offices Market Insights

TOP thought leader Ronald Diamond on Linkedin:

Approximately 15,000 Family Offices around the world currently control $10 trillion in assets, surpassing the global hedge fund industry’s $6.5 trillion. 

  • The preparation over the next two decades of unprecedented wealth transfer of approximately $84.4 trillion from baby boomers to the next generation

  • Family Offices will become the disruptive force in the private equity and venture capital sectors

  • Family Offices will play a Philanthropy major role in shaping the future of social impact.

  • 41% plan to raise private equity direct investments over the next five years. family offices with private equity investments prefer to invest using funds (56%) as typically, they deliver diversification and can allow family offices to enter markets where they do not have in-house expertise. 

Family Office Needs & Focus

  • Managing the stability and performance of the family's financial assets: Mitigating taxes, estate planning, asset protection, investment, philanthropy 

  • Educating the new generation (family continuity) and supporting generational wealth transfer

  • Proactively protecting the family reputation

  • Service/concierge-centric services

TOP Leaders Angelo Robles and Ronald Diamond say:

Family Offices Concerns 

  • Geopolitical instability, jurisdiction risks 

  • Government confiscates through taxation, inflation, interest rates, recession, size properties

  • Banking System 

  • ESG compliance, climate change 

  • Asset protection and asset transfer to new generations 

  • Protecting reputation, maintaining confidentiality 

  • Increasing regulation, constantly evolving, and reporting obligations 

  • Cyber threats, emerging tech (AI), digital assets, CDBC  

  • Supply chain disruption, future lockdown

Why Sustainable Data Centers could be a solution:

The ultimate goal is to procure family continuity, generationally, across any, and all challenges, preserving the legacy which is vastly harder than making money. 

A Bank within a Data Center or a Data Center within a Bank ??

  • Building your own bank, a sovereign treasury, an insurance against inflation and economic turmoil 

  • A turn-key solution that covers site discovery, sustainable energy plant, and data centre development and management

  • With concierge service that guarantees family continuity through the management of performance reports and updates/progress calls. 

Benefit

  • Driving business transformation, digital transformation, automation, and circular economy, in the fields of technology, energy, and finance 

  • Fixed income, alternative assets, real estate, energy investment 

  • Potential tax advantages with CAPEX depreciation and sustainable energy investment 

  • Impact investment with benefits for the local community, neutral Co2 emissions, with no need to buy carbon credits, decentralization , incentivizing resilience and security

  • Asset transparency and self-custody facilitate the creation of a generational transfer plan 

  • Engagement of the new generation with investments that have a purpose, and measurable ESG impact and in line with 3Ps bottom line people, planet, profit

Conclusion

What could be wrong?

  • Is your family safe, antifragile? 

  • How safe are your assets? 

  • How stable, solvent is your sovereign asset? 

  • What would happen if your sovereign assets and bank account were frozen or sized?

  • If your dollar-denominated asset drops 50% 

  • If we have government lockdowns and no freedom of movement? 

  • Wild fires, nuclear war, derivatives collapse 

  • Future taxation of unrealized capital gains 

  • Geopolitics, Economic depression in the West, the growing cost of capital, lack 

     of talent……

There should be a reason why billionaires buy banks and insurances….

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