The need for collaboration and digitisation across Family Offices

The need for collaboration and digitisation across Family Offices

15th September 2020

Although wealthy families tend to be well-connected, one global private investor network is calling for tech-focused Family Offices to collaborate, and share their expertise. As 35% of Family Offices allocate their fortune to alternative assets, bespoke Family Office network, SoHo Ventures, argues that families need more support when assigning their wealth to this type of investment, especially new tech. To help this, SoHo Ventures has developed a digital platform alongside UK fintech Delio, which will bring together affluent families to connect, learn and benefit from investment opportunities online.

Over the last five years, wealthy families have increasingly turned their investment focus to technology. By 2018, Family Offices across Europe had invested five times as much in start-up technology companies than the previous five years – a trend that is not slowing down. In UBS’ latest Global Family Office report, information technology continues to be the preferred private equity sector for Family Office investment (77%); yet, SoHo Ventures believes families could be gaining significant additional benefits if they were able to connect and share best practices.

Kiran Dutta, Founder of SoHo Ventures, said: “The majority of today’s Family Offices are on the cusp of transformation and are already preparing themselves for the most significant inter-generational wealth transfer seen within the industry. From Blockchain to Quantum Computing, the next generation is investing in the future of technology.”

SoHo Ventures regularly hold international summits for audiences of wealthy families and have witnessed first-hand the benefits that peer networking and co-investments can bring. Through their digital platform, they are planning to take this experience one step further, by helping families to better navigate and understand the opportunities available across alternative assets classes.

Dutta continued:

Although there are plenty of investment opportunities in ‘new technology’, the traditional Family Office model needs to adapt. Digitisation, education and collaboration play a fundamental role here. By going digital, we are creating an ecosystem that is not only available 24/7, but that also offers a private space in which wealthy individuals can exchange ideas and discuss investment opportunities.

As tech advancements speed up, SoHo Ventures’ partnership with Delio will enable them to offer families digital tools that will drive the network and instantly analyse the suitability of investment opportunities. The white-labelled technology on which SoHo Ventures’ private network is built will digitise all stages of the investment cycle and create a more holistic investor experience that provides easier access to deals, greater networking opportunities and real-time portfolio analytics.

Edward Cotton, Head of Business Development at Delio, said:

Digitising the private markets landscape goes beyond making investment opportunities more accessible. By using technology to help wealthy families connect and share best practice, SoHo Ventures is creating an online ecosystem that will not only help to overcome the challenges of the current climate, but that will also enable an international audience to come together.

“At Delio, we strongly believe in collaboration – whether that is between financial firms and fintech, or between families and business. We’re delighted to be working with SoHo Ventures to offer the tools that not only provide a smoother investment experience but also enable families to learn, engage and co-invest in the upcoming wave of technology.”