Home field advantage: Leveraging your family’s strengths to maximize risk-adjusted returns
While portfolio management dominates the conversation of most family office conferences, the reality is the majority of Latin families generated a significant amount of their wealth— and continue to maintain large ownership interests—in directly-owned, privately held companies. As the local capital markets often lack depth and transparency, direct ownership is frequently the only functional option for investing in the region. While family ownership structures provide other ancillary benefits, superior returns can be achieved relative to passive fund investments. However, success requires a structured approach to investing and a differing array of capabilities from the skillsets most traditional family offices cultivate.
