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In the News Press Release

U.S. Family Offices Face Increasing Competition from Foreign Families

Publisher: Private Asset Management
January 22, 2019

Von Sanborn was quoted in an article, "U.S. Family Offices Face Increasing Competition from Foreign Families," published by Private Asset Management. The article discusses an uptick in international family offices seeking a presence in the United States, driven mainly by investment benefits from tax reform, political instability in their home countries and a desire for geographic diversity. 

Sanborn told Private Asset Management the increase in U.S.-bound movement can be tied to the Tax Cuts and Jobs Act of 2017, which "makes it much more efficient to invest in the U.S. in a sound economic way," along with political instability in the home countries of families and a desire for increased geographic diversity of their investment programs. "They are looking for the same thing with programs such as currency diversity in order to have some amount of hedging vis-à-vis their home currency. We have also seen a number of Latin American family offices doing the same thing for the public equity and public debt markets and to have what they perceive to be better access to U.S. managers," he added. 

As noted in the article, the influx of high and ultra-high-net-worth investors has led to more deal competition among family offices already competing with professional investors and private equity. "One continuing trend we see is non-U.S. family offices coming in to directly invest in U.S. real estate as well as direct investments in U.S. portfolio companies in order to avoid advisory fees by making direct investments on their own," commented Sanborn. "There seems to be a perception that if you're a family office outside the U.S. you may not have the same access to products and bankers in the U.S. until you have an office here with boots on the ground. Consequently, we have seen a number of families set up satellite offices within the U.S. to avoid this."