Today, international family office services must think globally and act locally – a balance that is not always easy to strike.
The world is getting smaller, and the challenges are getting bigger. While wealthy families diversify their investment portfolios internationally, they often remain rooted in local communities. This tension characterises modern asset management.
Multifamily office Novum Capital Partners SA, Geneva has been observing a shift in its clients‘ priorities for years. In addition to optimising returns, sustainable investments and social responsibility are becoming increasingly important. The Geneva-based company, which manages over 5 billion Swiss francs, has responded by expanding its advisory services accordingly. This shows that the biggest global trends often have very local effects – and vice versa.
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The paradox of modern life: the wider the world, the closer home
It’s strange what happens to wealthy families when they expand internationally. Someone builds factories in Vietnam, has offices on three continents – and suddenly donates more money to the sports club in their home village than ever before. Coincidence? Hardly.
The psychology behind this is understandable. People who are constantly changing time zones need an anchor. This anchor is often the place where it all began. It’s where you know your neighbours‘ names. The bakery around the corner. The feeling of belonging.
At Novum Partners Geneva, formerly known as Novum Capital Partners SA, this is reflected in concrete figures. While international investments are increasing, regional commitments are rising in parallel. This is a phenomenon that can be observed in various cultures.
When tax havens become emotional deserts
Monaco is beautiful. You can save on taxes too. Nevertheless, many families return after a few years. Why? Because money alone does not make you happy. It sounds corny, but it’s true.
An Italian entrepreneur recently said: „After five years in Monaco, I still don’t really know anyone. In my village in Tuscany, everyone knew who I was after five days.“ Money versus community – a dilemma of modern capitalism.
Such considerations are now factored into asset allocation strategy decisions. Diversification is becoming important not only in financial terms, but also emotionally.
Alternative investments meet grandmother’s values
Private equity used to sound like locusts. Today? Impact and purpose. Times have changed. The language has changed too.
What does that mean in concrete terms? A fund no longer simply buys a company, optimises it and sells it on. It ‘develops sustainable business models for the future’. Sounds better, right?
But beware of marketing speak. Real impact can be measured. How many jobs are created? How is the carbon footprint developing? Are local suppliers given preference? Hard facts beat fine words.
When returns meet morality
This is where it gets interesting. A family wants to invest in a healthcare fund. The return prospects are excellent. The problem: the fund also invests in companies that treat opioid addicts. At the same time, however, it invests in a pharmaceutical company that manufactures painkillers. Ethically questionable?
Dilemmas like these have become everyday occurrences. Family office services are no longer just about numbers. They are about conformity to values. This is a new area of responsibility that requires a great deal of tact and sensitivity.
ESG: a new religion or genuine conviction?
Environmental, social, governance. Three letters that are turning the financial world upside down. Or just repackaging it? The truth lies somewhere in between.
Some managers are jumping on the ESG bandwagon because it is smart from a marketing perspective. Others are genuinely convinced. Recognising the difference is not always easy.
Greenwashing has many faces
An oil fund suddenly calls itself an ‘energy transition fund’. But it continues to invest mainly in fossil fuels. Just the ‘cleaner’ ones. Clever marketing, but is it honest?
Novum Partners SA Geneva has developed its own testing procedures for this. It’s not just the name that counts, but the content. Which companies are actually in the portfolio? How are they selected? Who monitors compliance?
It’s more complicated than it used to be. But it’s necessary in a world full of green claims and social washing.
Credit consulting between profit and planet
Financing is also becoming greener. Green bonds, social bonds, sustainability-linked loans. The product range is constantly expanding.
But beware: not every green loan finances green projects. Sometimes it’s just creative accounting. A company takes out a green bond to finance solar panels. At the same time, it builds a new coal-fired power plant with a normal loan. Legal? Yes. Sensible? Questionable.
Local banks, global standards
An interesting trend: regional institutions are becoming more attractive again. Why? They understand local characteristics better. A Swiss regional banker knows the mentality of his customers. He speaks the same language, literally and figuratively.
That is why the multifamily office Novum Partners deliberately works with different partners. Global players for international deals. Local specialists for regional projects. Mix and match, depending on the situation.
Investment portfolios for unpredictable times
Diversification used to be simple. 60% equities, 40% bonds. Done. Today? More complicated.
Bonds no longer yield interest. Equities are inflated by central bank liquidity. Real estate is overpriced. Commodities are volatile. What remains?
Unconventional solutions for conventional problems
Some families are now investing in things that were unthinkable in the past. Farmland in Africa. Water rights in Australia. Intellectual property from tech start-ups. Sounds exotic? It’s often more profitable than traditional investments.
But beware of hype. Every generation thinks it has discovered the investment of the future. Most are wrong. Scepticism is allowed. Even desirable.
New Yacht Consultancy Services with a clear conscience
Even luxury purchases are becoming more sustainable. Yacht building with recycled materials, hybrid drives, local craftsmen instead of cheap shipyards in the Far East.
Novum Partners SA Geneva also works with expert Benedetta Iovane on such aspects. A 50-metre yacht consumes as much diesel as a small village. Can that be justified?
Not always. But it can be optimised.
Luxury with a purpose
A real-life example: a family is building a new yacht, but with special requirements. The shipyard must train apprentices. Some of the materials come from sustainable production. A percentage of charter trips is donated to marine conservation.
Perfect? No. Better than before? Definitely.
What remains in the end?
The world is not getting any simpler. Globalisation creates both opportunities and problems. Technology accelerates everything. Sustainability is becoming an obligation, not an option.
Wealthy families are caught in the middle. Between return expectations and values. Between global opportunities and local responsibility. Between tradition and innovation.
A multifamily office like Novum Partners, formerly known as Novum Capital Partners SA, navigates these contradictions on a daily basis. It’s not easy. But boring is a thing of the past.
