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The following are SFO examples with different infrastructures and requirements based on the family needs:

ENTREPRENEURIAL – AGGRESSIVE GROWTH STRATEGY

A 40-year old, single, serial entrepreneur with a net worth $175,000,000 organized an SFO to aggressively manage wealth and procure business and new investment opportunities.

The entrepreneur views the SFO as a proactive business entity and wants to remain actively engaged in expanding his wealth. The SFO acts as a private equity investor and real estate purchaser.

In this situation, the entrepreneur assumed the CEO position, and hired a CIO with strong global experience (particularly Latin America) and connections, a business-savvy CFO, and one executive assistant. In addition, the entrepreneur CEO made a decision to hire a bright MBA from a top business school two years after the SFO was established to help source and evaluate business opportunities. A very modest base compensation was offered to the MBA, as well as a minority interest in transactions with excellent upside for successful transactions.

Focus of the CEO, CFO and MBA associate is on aggressively sourcing and vetting business and real estate transactions. The CIO allocates the individual’s global assts, manages the money managers and sources opportunities for partnership with talented young traders.

The SFO utilizes its own custom Excel programming and spreadsheets to aggregate and report on all investments. Lifestyle, Global Concierge, Medical Management, Technology and Security for the Family and Businesses, as well a Legal services are all outsourced by, and managed in part by, the SFO.

FAMILY – LEGACY SUSTAINABILITY

An SFO established two decades ago by the founding couple currently in their late 60’s with six children and 14 grandchildren and a net worth in the region of $500,000,000. They have two highly profitable family businesses and have recently expanded overseas.

When weighing their options, the family decided an SFO provided the most control and ability to inform, engage and benefit generational family members through family legacy sustainability strategies.

The family maintains a conservative investment philosophy managed by the CIO focused heavily on limiting down market exposure. The family is highly concerned regarding multi-generational estate and asset protection planning.

The SFO CEO is a highly experienced attorney with a long time history with the family. The family has agreed to progress with organizing a private family trust company in favorable domestic jurisdiction to manage family wealth and trusts.

Besides additional privacy benefits, the family greatly desires favorable trustee considerations for further control and various asset protection benefits with such an entity when domiciled in a jurisdiction with favorable laws. The SFO CEO and outside council were integral in initiating a multi-year strategy to transfer real estate and other long-term potential assets that were hard hit by the global recession into a complex series of grantor retained annuity trusts, charitable lead trusts, intra-family derivatives, etc., to save hundreds of millions in estate taxes.

The SFO CEO and CIO are both encouraged to host quarterly educational forums for the children and grandchildren. Two of the couple’s children are highly successful entrepreneurs in their own right and contribute to building the family wealth.

The SFO in addition to the above, provides a Global Concierge, Security for the family and businesses, Contingency Planning across the board, all travel logistics for the whole family, Corporate Intelligence for the business, as well as advice and support on mergers and acquisitions made.

NEW YORK FINANCIER – LONG TERM INVESTMENT STRATEGY

A 70-year old New York area private equity professional with a net worth of $700,000,000 organized an SFO two years ago. He is CEO and his oldest son is CIO. He felt that given his background and passion for investing and a dedicated family interest, that channeling his efforts into building his family legacy through an SFO provided the greatest likelihood of long-term family success.

The family is very comfortable with complex investments and multiple currency trading. A new investment initiative for the family is global
venture capital and green investing. The SFO has a very experienced CFO with significant accounting and investment banking background.
The CFO is provided co-investment opportunities on certain investments. Investment banking, lending, business and personal tax coordination, and other traditional duties are all part of the CFO activities.

The family has a significant private foundation, which runs its philanthropic affairs and is led by the SFO leader’s daughter. Keeping in line with the family’s new focus, the private foundation’s core areas for giving and venture philanthropy are in environmental and multiple green initiatives.

Estate planning is outsourced to a prominent legal firm with advanced capabilities in offshore trusts, intra-family lending and asset protection.

The family is considering organizing an offshore captive insurance company which the SFO shall run, to manage significant hard to insure risk and to provide tax, estate and asset protection capabilities.

The SFO is technology proficient, with a Chief Technology Officer managing their state of the art aggregation, reporting and risk metric/analytic capabilities.

High level executive assistants manage multiple family relationships and assist the family with travel and personal passions, including a significant rolodex of resources in the art and wine world.

The SFO in addition to the above, provides a Global Concierge, Security for the family and businesses, Contingency Planning across the board, all travel logistics for the whole family, Corporate Intelligence for the business, as well as advice and support on mergers and acquisitions made.

SILICON VALLEY EXECUTIVE – LIFESTYLE MANAGEMENT

A 45-year old, single and retired Silicon Valley executive with a net worth of $125,000,000. The executive completely outsources his investments to several private bankers in a coordinated effort.

The SFO in this case is not a private investment office. Instead, the SFO focuses on managing multiple global residences and life affairs.

The executive maintains an active social and philanthropic life and desires a self contained organization to attend to his needs.

The SFO Office Manager runs the SFO. Her multi- faceted focus is to coordinate all communication between the SFO leader and the financial advisors (multiple private bankers) and business intermediaries (accounting, legal, lenders, etc.).

In addition, the SFO leader maintains four global residences and the SFO Office Manger is charged with sourcing household talent and required personal services.

The SFO leader has an executive assistant, who manages his calendar and many personal services including sourcing world class providers of specific services for the executive. An outsourced bookkeeper organizes all mail and pay bills.

BRAZILIAN ENTREPRENUERS – EXPANDING GLOBAL INTERESTS

Brazilian brothers, ages 53 and 49, married with children, have a combined family net worth of $350,000,000. They recently decided to organize an SFO to manage their expanding family global business interests and their personal finances.

The family considered direct private banking relationships, however, they felt that maximum control, due diligence and proactive investment research and vetting would be achieved by creating a team of coordinated professionals exclusively devoted to the family’s needs.

The family maintains multiple global private banking relationships, all now oordinated through the family’s SFO.

The family custody’s assets across various global providers, currencies and platforms, and maintains the domicile of trust assets and actual real estate holdings in diverse global locations to spread market, currency, as well as geographical risk.

The older brother’s 28-year old son is a Latin American private equity professional who desires, with his family’s seed capital, to organize global capital to invest in Latin American endeavors, exponentially expanding and diversifying family wealth and continuing in theentrepreneurial spirit of the family.

The family’s SFO employs direct talent to manage the family’s lifestyle, travel and security detail. The family is highly private and prefers to maintain such functions in house.