Single fam­ily of­fice makes sense when the wealth is size­able, of­ten in ex­cess of $150 mil­lion. Oth­er­wise the costs might be more than the ben­e­fits”

Business Today - - BUSINESS - Nupur Pa­van Bang, As­so­ciate Direc­tor, ISB

legacy and the fam­ily wealth.” As fam­ily of­fices ma­ture, gov­er­nance stan­dards be­come bet­ter with more pro­fes­sion­als brought in to lead. In­dia has, in Ra­jan’s view, seen some great ex­am­ples of fam­i­lies that have pro­fes­sion­alised op­er­a­tions of the com­pa­nies they pro­moted and suc­cess­fully seg­re­gated own­er­ship and man­age­ment. She cites the ex­am­ple of Asian Paints which has un­re­lated pro­moter fam­i­lies or that of the Bur­man fam­ily (of Dabur) and the Mu­ru­gappa fam­ily apart from a few oth­ers. Ra­jan there­fore re­minds that the need for a fam­ily of­fice is linked to the pur­pose that the pro­mot­ers want it to serve. As is ap­par­ent, the fo­cus of the fam­i­lies cited above would be more around the deal­ing with , con­tin­uin­ity of the fam­ily legacy and re­spon­si­bly manag­ing fam­ily wealth. Whereas oth­ers, such as Su­nil Kant Mun­jal or the Patni fam­ily for in­stance, who ex­ited an op­er­at­ing busi­ness and have in­vestible funds would want the fam­ily of­fice to be an in­vest­ment plat­form.

One of the big prob­lems with fam­ily busi­nesses in

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