But settle in for a few ‘Slings’ and you will find yourself absorbed into the atmosphere, fantasizing about colonial adventures in South East Asia.
Charming timber staircases connects the two levels of the Long Bar with the seating above interspersed with teak lounge chairs.
An island city state, Barron’s reports that Singapore is the world’s second largest banking center, behind Switzerland.
Combine the investor friendly environment with lower transparency and the incredible economic growth in Asia, you will find Singapore to be an enclave for family wealth.
We highlight the success of Singapore because we envisage a new form of politico-economic structure developing. Neither capitalism nor communism but one of near dictatorship yet friendly to capital.
We see many such Singapore’s developing over time to cater to vast family wealth. In a recent article Bloomberg notes there is as much as $4 Trillion (that’s a T) of family wealth looking for private equity like deals.
In fact we can even see a time where the wealthy are happily ensconced ‘somewhere’ else, well protected and guarded while the world’s wealth disparity becomes enormous.
Not unlike in the Neill Blomkamp - my favorite director who happens to be South African - movie Elysium.
“In 2154, Earth is overpopulated and polluted. Most of the earth's citizens live in poverty, on the edge of starvation, and with little technology and medical care. The rich and powerful live on Elysium — a gigantic space habitat located in Earth's orbit. Elysium is technologically advanced with some of its technology including Med-Bays: medical machines that can cure all diseases, reverse the aging process, and regenerate new body parts. A long-running feud exists between the wealthy residents of Elysium and the citizens of Earth, who want Elysian technology to cure their medical ailments.” --- Wikipedia
In this enclave of family wealth we have noticed a ‘new’ business model emerge within the wealth management space.
What is commonly misunderstood about family wealth is not only the lack of homogeneity between families but also the diversity of capital pools within.
It is therefore quite common for any new investment (direct, co-investment, fund) to be made from a SPV commingled vehicle.
Over the years we have seen various wrap provider businesses develop to create unique vehicles and/or access points for family offices and club deals.
We know of several ‘consultant’ type businesses which specialize in introducing co-investment and direct deals through family office syndicates.
All of these services are provided on a sliding fee scale and in some instances feeder funds are opened for distribution to other families or RIAs.
It’s a fascinating space and likely eating the lunch of fund of funds as the movement towards direct deals by family has increased.
For more fascinating information on Family Offices and their tremendous trajectory I suggest you read Richard Wilson’s The Family Office Book: Investing Capital for the Ultra-Affluent.
We perceive that the growth in family office wealth is where it’s at over the longer term - fungible wealth managed away from regulation that knows no borders or constraints.
Thank you for reading my post. I regularly write about private market opportunities and trends. If you would like to read my regular posts feel free to also connect on LinkedIn, Twitter or via Atlanta Capital Group Investment Management.
Greg Silberman is the Chief Investment Officer of Atlanta Capital Group Investment Management [ACGIM]. Atlanta Capital Group Investment Management specializes in creating custom private market solutions for RIA/Family Office clients.
Nothing in this article should be interpreted as a recommendation to buy any security. Please conduct your own due diligence.
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