Highlights: Jan. 2019 Miami, Phoenix, Vegas
We kicked off 2019 with events in Phoenix, Las Vegas, and then Miami. This year, we are expanding to more than 50 cities in over 20 countries, which is up from 35 in 15 countries in 2018. We also plan to roll out our $1 Billion pledge fund for more than 50 family offices around the world.
Phoenix
Phoenix is home to what locals describe as about 40 “quiet” family offices, many from the Midwest and Canada. With beautiful weather and views from El Chorro and Snell & Wilmer. SFOs included transplants (e.g. a Cleveland family investing in organic food brands) and outposts (e.g. for a NY FO seeking manufacturing businesses) including Eurasian and African families who studied at Thunderbird.
Vegas
Vegas family offices were almost all recently transplanted or using Nevada as a holding company for tax purposes focused on cannabis, hospitality, media and unsurprisingly gaming,
Miami, Day 1 (Roundtables)
Miami attracted more than 80 participants over the course of two days. Those who attended converged from Chicago, Cleveland, Columbus, De Moines, Detroit, Toronto, Buenos Aires, Dusseldorf, Houston, and London. Participants engaged in four roundtables by asset and industry, sharing “ASKs” on seeking investments and/or capital. Co-leaders shared take-aways followed by Q&A. Comments included:
· fear of a flare-up with China, not only trade but naval geopolitics
· fear that central banks lack impact with more lending by non-regulated sources and weaker middle class
· fear of swing of US political pendulum with much higher tax rates
· need to manage pinch points in labor supply for manufacturing as well as transportation (trucking)
· need for more flexibility by US policy on both immigration and the central bank to keep interest rates low
· opportunities still exist for reasonable valuations in the lower middle market
Miami, Day 2 (Panels)
Panelists shared perspectives across their asset classes, the cannabis industry, impact and opportunity zones. Highlights of various perspectives shared include the following:
· Brazil’s new regime is less volatile and has battled corruption
· CEOs noted challenges in navigating volatility of US policy cycles for M&A and capex
· local communities are filling gaps with lack of national leadership on various “impact” initiatives
· continued theme of family offices trying to optimize how to involve the Next Gen
· all eyes on Venezuela in the next months and days with challenges and opportunities
· Opportunity Zones could unlock $6 trillion of capital gains, based on 15 pages pasted into tax law