FOXCloud: What’s on the Minds of FOX Members – March 2024

The following were the most talked about topics within the networks on FOXChat in March 2024:

 

CEO Search

The CEO of our office announced that he is leaving to pursue another opportunity and we are considering the following recruiters:

  • Neil Kruezberger
  • Pam Harrington
  • Linda Mack
  • Julie Zorn

We would be curious to know if anyone has done a recent search (last 18 months) with any of these people and what your experiences were. Also, if you have other recommendations for recruiters, that would be helpful as well.

The CEO's departure is amicable, and he will assist in the search. The family is interested in making sure that there is a good cultural fit. FOX may put us in touch. (Source: HCAP)

  • We have recently become members of FOX, however, have worked with Peter for some time, through podcast interviews and speaking as a panelist at the event in the summer (in Chicago). I am the co-founder of Agreus—which is a Resourcing and Recruitment business working exclusively with Family Offices. We have placed a number of Family Office CEOs across the USA, so would be happy to give you some guidance or help. I have also attached a report we created on Family Office Leadership (this is hosted on the FOX platform) that you may find useful: Who is the Ideal Family Office Leader?
     
    I 100% agreed with your comment on making sure there is a good cultural fit as this is the driving force behind all our hires. We have actually also written a report on this: The Complete Guide to Cultural Fit in Family Offices
     
    If you have any questions, we would be very happy to help.

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Family Office Names

We own an operating business and have a "Family Office" within said business. We are undergoing some restructuring and the enterprise will really become the family office. We will still have a team dedicated to family matters and are trying to think of a name for said team other than family office to avoid confusion. Does anyone have suggestions? (Source: FOPeer)

  • When I was at an embedded SFO in a past life, we were known as "Executive Finance" and technically reported to the Head of Finance/CFO of the operating business, but really only dealt with and were accountable to the founder and CEO.
     
    It was a bit of a "mysterious" title, but most senior leaders (and even more junior staff) of the business knew that we were the founder's FO and knew what NOT to ask us about.

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Utility Company Accounts

For privacy and security purposes, do your family member clients register utility company accounts (such as gas and electric) in a name other than their individual name? If so, what alternatives do you use—an LLC, the name of a family office individual (both of which have pros and cons), etc.? (Source: FOPeer)

  • Most of our family members have their utility bills registered under their own names. However, I do have one family member who has registered their utilities for one of their properties under the name of the trust that owns the properties. The only time I've personally encountered that this could potentially be an issue is when they are required to provide utility bills for Know Your Customer requirements. In this case, the trust name includes the individual's full legal name, so there have been no issues with KYC compliance. However, if the trust name didn't include the individual's full legal name, I could see that it could potentially cause some (likely fairly easily circumventable) challenges with KYC compliance.
  • That is a very good question as utility requirements and benefits vary from state to state. We are a smaller office and have used all of the options mentioned with varying degrees of success. Ideally, a corporate entity that will continue to exist would be the best option, but certain utilities will treat these accounts as a corporate account if done that way—with usually higher costs. Using a family office individual also works, but requires revision when they leave, retire, or die. Using the individual's real name is sometimes the least bad option (except for the privacy issue)—unless they then die, and you need to have the service name changed. We have also tried prepaid accounts which were even worse.
  • We have tried to put in a corporate entity before and it is always MUCH more expensive than putting in a person’s name because they charge more for business accounts. We have also had the issue where it was in an assistant's name that no longer is with the company. Eventually, we had to close everything down and start back over. Ultimately, we have landed at just putting in a personal name.
  • In a previous role, the homes were owned by an LLC, and we had the utilities in the name of the LLC. However, some utilities viewed us as a business as a result, which created some problems.

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Member Referrals Requested:

This section includes service providers that members have recommended and/or are looking to hear about other members’ experiences.

Appraiser

Any recommendations on an efficient appraiser for private equity heavy mixed asset entities? (Source: DIN/FOPeer)

  • We have used Evergreen Advisors, formerly Baker Meekins, to value our holding company, which previously owned an operating and a diverse private equity heavy portfolio. Since the sale of our operating company in 2022, they have been very efficient in valuing our holding company, which is now in the trade/business of owning investments.
    evergreenadvisorsllc.com

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Background Checks

We are looking for firms that conduct background checks on principals/founders of various service providers and vendors serving the family/family office.

We have a list of vetted providers focused upon money managers, as well as those focused upon household staff and/or family office employee checks but are now searching for more of a generalist firm to provide background checks on a myriad of vendors, including information technology providers. Any thoughts would be appreciated.(Source: ADVPeer/FOPeer)

  • Chubb would recommend XG Consultants Group. Here is a link to more information: xgconsultantsgroup.com/chubb. Please feel free to let me know if you have additional questions.

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Entertainment Attorney Background Check

We have a client with a family member who is 15 and needs an entertainment attorney for work she is doing in the music industry for singing. Can anybody recommend an attorney who can help? Additionally, we also want to run a background check on somebody that is acting as her agent. Can anyone recommend a company who can assist? (Source: ADVPeer)

  • Regarding the background check, do you have access to World Check? This service is useful, depending on the type of check you wish to perform: en.wikipedia.org/wiki/World-Check.
  • Regarding this request: "Additionally, we also want to run a background check on somebody that is acting as her agent. Can anyone recommend a company who can assist?"
     
    BDO has an Investigative Due Diligence practice exactly for these types of inquiries—the work they do likens similar results to an FBI background check. Feel free to contact Joann Arweiler, the Global Intelligence practice leader at jarweiler@bdo.com or 718-551-2324 for more information.
  • Hello, I would recommend talking with Robert. He is connected to the entertainment industry in LA and will give you an unbiased opinion on who to use based on your circumstance. Robert.dalie@opco.com 310-446-7501
  • I have recently worked with Carol Kaplan at Loeb & Loeb. She is based out of NYC.
    • Carol Kaplan
      Partner and Co-Chair, Theater & Live Entertainment
      345 Park Avenue | New York, NY 10154
      Direct Dial: 212.407.4142
      Email: ckaplan@loeb.com
  • We really like working with Steve with some of our client athletes.
    • Steven Olenick
      Member/Chair, Sports & Entertainment Practice
      Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
      919 Third Avenue, New York, NY 10022
      Phone: 212.692.6291
      Email: SMOlenick@mintz.com
      Website: mintz.com
  • Our team in Beverly Hills had a few names that we or our clients have worked with or recommended:
    • Peter Matorin
      Beldock Levine & Hoffman LLP
      Phone: 212.277.5830
      Email: pmatorin@blhny.com
    For the background check:
    • Avi Korein
      S.I.S.S Ltd.
      Phone: 310.274.3740
      Website: sissltd.com

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Incentive Compensation for Investment Roles

What metrics or milestones do offices use for their incentive compensation associated with investment roles (e.g., CIO)? We are building an internal investment practice and want to identify metrics that align with the interests of the family members. Thank you in advance for any feedback or guidance. (Source: FOPeer)

  • Is the implication behind the question: How did the portfolio management team do in comparison to its benchmark, do we measure them at the 1-, 3-, 5- and 10-year measurement points, do we measure at each measurement point but weight those points differently to favor short- or long-term performance? Or is the focus on absolute performance given the family/client's objectives for achieving some necessary level of performance...with an implied willingness to give away some of the upside.
     
    Ultimately, the trick is incenting the team in a way that aligns with the portfolio owner’s investment objectives. Not always easy to get those interests to align.

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Insurance Policy Coverage Review

I'm in the process of doing a review of insurance coverage for a family office that is just getting organized. There are currently legacy policies with multiple providers across vehicles, leisure crafts, and properties, plus I'm looking for fine art coverage and other additional coverage. I'm curious to know if anyone has gone through a similar process and did you consolidate under one company + any lessons learned? Also, curious to know what insurance providers others are with that have global reach and understand and cater to the unique requirements of a family office. (Source: FOPeer)

  • When I led a large and complex SFO in a past life, we used Albert Risk Management (Stuart Cowart) for a complete top-to-bottom review and optimization of our insurance coverage. We were very happy with Stuart's expertise and services.

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Jet Charter

Looking for a reputable company to handle a one-time jet charter from Chicago to Nantucket this summer. (Source: ADVPeer)

  • Air Charter Service is a great company.
  • We are in the private aviation consulting space and know many of the charter operators in the Chicago area. Please feel free to reach out directly and we can assist you with a referral based on your needs.

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Memphis Elder or Estate Planning Attorney

Seeking recommendations for an elder or estate planning attorney near Memphis, TN. Any referrals would be greatly appreciated! (Source: ADVPeer)

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Additional Topics of Interest Seeking Peer Recommendations, Feedback, or Insights

(Your comments can be submitted as a reply to the message on FOXChat or emailed to networks@familyoffice.com for FOX to post and share anonymously on your behalf.)

ADP Payroll Tax Return Preparation

Our privately-owned company is investigating contracting ADP for payroll preparation including filing all payroll tax returns. Our company has employees in 36+ states, and currently all payroll tax returns are done in house. If anyone has had experience with ADP in terms of their multi-state payroll tax return processing capability, I'd like to hear about your experience. (Source: HCAP)

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Budgeting App

We have a client looking for a budgeting app that other families have used with success. Does anyone have any recommendations? (Source: TODS)

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Event Management Software

Any Family Office teams utilizing event management software (such as Cvent) to plan and execute Family Meetings? Looking for feedback or recommendations, specifically around reduction in manual processes and capability to be family/client-facing. (Source: FLN)

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Family Personal Assistant

One of our families is seeking a part-time personal assistant to support their professional and personal endeavors and household operations. This role is hybrid (remote and in-person) for 15 hours weekly. Location is in Southwest Missouri. (Source: FOPeer)

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Lattice

We are interested in talking to any offices that are using Lattice for employee evaluations, career planning and feedback. We want to understand how the implementation went, as well as whether you continue to find Lattice useful. (Source: HCAP/TODS)

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Portuguese Golden Visa

Does anyone have experiences or contracts related to Portuguese Golden Visas that they could share? (Source: FOPeer)

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Timeshare Property Lawyers

We have a client who is a Canadian Family Office seeking recommendations for a lawyer (Canadian or US) who specializes in the sale of timeshare properties. Would appreciate contact information and input on your recommendations.(Source: ADVPeer/FOPeer)

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Software Reviews/Experiences

This section contains software platforms that members have recommended and/or are looking to hear about other members’ experiences.

Board Preparation and Material Hosting

We are exploring using a Board software for preparing the Board Materials, distribution, voting and hosting in the cloud. We are evaluating OnBoard and I was wondering if anybody has used them? How easy is it really to use and if you would recommend it? I appreciate all input. Thank you! (Source: FOPeer/TODS)

  • We are also evaluating the software. Any similar packages out there we should also look at?
  • I am not personally familiar with them, but Shaparency is a board management platform that was referred to us by another FOX member.
  • We previously used Govenda and were happy with it. However, it ended up being more robust than what we needed to manage our governance.
  • Also: Boardpaq, Boardvantage, Diligent, BoardEffect, and Covenda.

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Key to Network Acronyms

  • ADVPeer: Advisor Peer Community
  • FOPeer: Family Office Peer Community
  • DIN: Direct Investing Network
  • FLN: Family Learning Network
  • HCAP: Human Capital Network
  • LCN: Legal Counsel Network
  • PTC: Private Trust Company Network
  • RGN: Rising Gen Network
  • TODS: Technology Operations & Data Security Network

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