Notes from the Fall Forum: Taking the Long-Term View
Last week we held the annual FOX Fall Forum in Chicago. Coming as it did in the run up to a U.S. presidential election and with a number of significant tax policy changes looming at the end of the year, a number of sessions dealt with near-term challenges. At the same time, a common theme throughout the three-day event was families taking a long-term view in running their enterprises and managing their wealth.
The role of investment
The Forum featured a number of sessions dedicated to investment, including one launching new capabilities for the FOX Deal Exchange Nework, a community for members interested in directly investing with each other. One of the overriding themes of the Forum was that investment is a means to an end. As FOX Founder and CEO Sara Hamilton put it in our Tuesday general session, “If the family enterprise discussion begins with investments, you’ll likely get a very short term view. If you begin with the family, you will get a more long-term view.”
Much of the investment discussion echoed this sentiment with sessions revolving around investment as a way of reinforcing a family’s values (impact investing) or meeting their long-term needs (goals-based investing).
A focus on families
This year’s agenda frequently put a spotlight on the stories of member families who have met the challenges of preserving wealth across generations. Peter O’Neill of the Rockefeller family discussed the value of a growing business in attracting the talent necessary to meet their long-term wealth management needs, noting that Rockefeller Financial has gone from a single family office to one that now serves more clients than family members. At the same time, he emphasized that the Rockefellers are still a family whose shared values of love, support and connection have guided their wealth management strategy across multiple generations.
Neil McKay of the Todd Family Office discussed their transition from an office tied to the New Zealand family’s energy business to a standalone single family office. McKay noted the importance of setting a long-term vision. In the case of the Todds, this meant prioritizing family unity and the ability to provide a full range of services to the family.
Multiple sessions dealt with engaging and developing the next generation of family enterprise leaders. Greg McCann of Stetson University’s Family Enterprise Center joined Jill Shipley of GenSpring to discuss the challenges of engaging next generation clients, noting that 92% switch advisors after receiving their inheritance. Dirk Junge of Pitcairn and Ann Dugan of the University of Pittsburgh's Institute for Entrepreneurial Excellence discussed fostering entrepreneurship in younger generations, while Karen Neal and Margaret Vaughn Robinson of FOX led a session on leadership succession.
The stewardship of wealth and why the long-term view matters
It seems fitting that an event focused on the long-term sustainability of wealth should end with a speech from Greycourt & Co. Chairman and Managing Director Greg Curtis. Curtis recently published his latest book The Stewardship of Wealth, which details the important role private capital plays in America’s economic and cultural success. Curtis’ closing message at the Forum was that the responsible stewardship of wealth matters because private capital fuels entrepreneurialism, innovation and philanthropy. It goes beyond the preservation of a family’s legacy to benefit society. That’s the greatest value of taking the long-term view.