A historical understanding

It requires a great deal of boldness and

a great deal of caution to make a great fortune, and when you have got it,

it takes ten times as much wit tokeep it.

Nathan Mayer RothschildNathan Mayer Rothschild

I would like to propose that the concept of the Family Office History goes back to Biblical Times:

◦ There are many well known stories that justify elements of the Family Office concept: The garden (the capacity to survive first wealth – the

apple) Bethel (building the first reference of values and

place - vision) Machpelah (defining the first memorial and

remembrance of family heritage)

If anyone dies holding of any escheat such as the honor of Wallingford, Boulogne, Nottingham, Lancaster or of other escheats which are in our hands and which are baronies, his heir is not to give any other relief or render any other service to us that would not have been rendered to the baron if the barony were still held by a baron, and we shall hold such things in the same way as the baron held them, nor, on account of such a barony or escheat, are we to have the escheat or custody of any of our men unless the man who held the barony or the escheat held elsewhere from us in chief.

Origins:◦ Sale of operating businesses in the seventies and

nineties (today for some countries)◦ The need to separate the operating business from

the individual assets◦ The need to define issues regarding:

Succession Fiscal Liquidity

Retirement plans

Most Family Offices around the world continue to deal with accounting and fiscal plans with strong concentration in the management of liquid assets

Few family offices administer issues like:◦ Fiduciary planning◦ Life cycle events◦ Concierge◦ Intangible Values

Initial stages of creation of multi family offices◦ Transition from the single to the multi family

concept A great majority are asset managers

that want to provide secondary services

The role of Private banks

J.P. Morgan – 1837 – 1913 ◦ Son of Junius Spencer Morgan - 1813 – 1890

founder of the House Of Morgan◦ Morgan Family Foundation

John Davis Rockfeller – 1839 -1937

Henry Ford- 1863 – 1947◦ Ford Foundation

Mayer Amschel Rothschild– 1744 -1812

"Banque de Candolle Mallet & Cie" was founded on 23 July 1805. The name "Pictet & Cie" was adopted 120 years later.

The foundation was laid in 1789, when at the age of only 17, Salomon Oppenheim jr. formed a commission and exchange house in Bonn. At that time, the French Revolution was spreading from France across Europe.

Family Offices in the Muslim World due to Shariah limitations will not be public.◦ Complex heritage issues different from the western

concepts

Family offices in Japanese culture because of the creation of large business conglomerates

Family Offices in religious theocracies that are based in theocratic cultures

The Medici Bank (1397–1494) was the largest and most respected bank in Europe during the 15th century. There are some estimates that the Medici Family was for a period of time the wealthiest family in Europe.

An asset manager;A place for individual needs before the

collective good will;A place to redefine business strategy when

there is a corporate governance structure in place;

A place to over rule corporate governance for family individual needs

An occupation for family members incapable of being in the business;

A place to socialize in a casual way;

All educational programs of the family; To create a communication project

among family members (need to create a formal protocol of dialogue)

family members with the business executives To administer partnership rules across

generations To insure legal protection of the individual

partners and collective needs; To generate solutions for individual crisis; To create an environment of individual

fulfillment.

In a global ever increasing world based on:

The speed of individuals ability to change their places of origin;

Access to information;The volatility of social structures

The Family Office tends to The Family Office tends to merge diverse tangible and merge diverse tangible and intangible factors.intangible factors.

Graduated from Columbia University (1974), with post graduate studies in England, Israel, and the USA.

Attended specialization courses at the University of São Paulo, Fundação Getúlio Vargas and Harvard Business School.

Visiting lecturer at the MBA program of the University of São Paulo.

Member of the Brazilian Institute of Corporate Governance.

Member of various Family Boards and Advisory Boards.

Member of the Family Business Network. Member of the Family Firm Institute. Editor of the book “A Industrial de Tintas no Brazil,

Cem Anos de Cor e História” (A Hundred years of the paint business in Brazil).

Author of the book: Family and Business, a road to success.

Active in Non Profit Institutions. National and International Speaker in events.

Rua da Consolação, 3741 – 12º andarConjuntos 121 e 122

01416-001 – São Paulo, SPBrasil

Tel: +55 (11) 3898-2918Fax:+55 (11) 3085-7262

E-mail: rwerner@wernerassociados.com.br www.wernerassociados.com.br