Family Office & RIA Weekly Roundup | 11.16.23 | Volume 81
Volume 81
11/16/2023 (5 Min. Read)
Czech Billionaire Consolidates Assets, VC Regional Allocations Shift and Gen Z Leads the Way in Alts in this Week's Edition...
Take a Lap Around the Industry
Czech Billionaire's Widow Consolidates Control Over Business Empire
The richest woman in Eastern Europe, Renata Kellnerova, is consolidating control over her late husband's business empire by bringing all family assets under one new holding company, AMALAR. The Czech billionaire Petr Kellner built up the PPF Group investment firm over decades to manage €40B in telecoms, financial services, real estate and other assets across Europe and Asia. Since inheriting the business after Kellner's death in 2021, Kellnerova has been streamlining its structure. The new AMALAR Holding will have Kellnerova and her three daughters on the board of directors. They aim to simplify ownership and strategy for PPF Group while expanding further into Western markets. Recently, AMALAR sold part of the telecoms business to an Abu Dhabi firm for €2.15B. With a net worth over $11B, the Kellner family remains focused on driving growth through its core investment portfolio under AMALAR.
"The aim of creating this superholding is to simplify the ownership structure, which will be fully controlled by the Kellner family."
Tomas Perman, AMALAR
Private Funding Pulse Check
Venture Capital's New Geography: Emerging Trends in U.S. State Market Shares
The U.S. venture capital landscape underwent significant shifts in the third quarter of 2023, as revealed in a recent analysis of Carta data. Central to this change was the West census region, particularly California, which saw its venture capital market share surge to 46.15% in Q3 from 35.99% in Q2, aligning with its dominant role in 2022. This rebound in California contrasts with the declining shares in other regions like the Northeast, South, and Midwest. States like Washington and Texas also saw noteworthy increases in their VC market shares, indicating a broader geographic diversification in venture funding. Washington's share more than doubled, while Texas continued its steady climb. On the flip side, states such as Florida, Ohio, and New Jersey experienced significant drops in their respective shares, suggesting a possible return to historical investment patterns. This report highlights the dynamic nature of venture capital distribution in the U.S., pointing towards evolving hotspots and the potential emergence of new hubs for startup growth.
"The map of venture capital funding in the U.S. is always changing. During the third quarter of 2023, startups headquartered in the West census region raised 53.2% of all venture capital recorded on Carta, an increase from 44.3% during Q2. Meanwhile, each of the other three census regions—the Northeast, South, and Midwest—saw notable declines in their share of funding raised."
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Kevin Dowd, Carta
Generational Shift: How Gen Z and Millennials Are Championing Alternative Investments
The finance industry is witnessing a significant shift as alternative investments gain traction, particularly among the younger demographic. Only a slim fraction of the American populace, 8%, are currently investing in alternative assets. In stark contrast, the younger generations display a burgeoning awareness and active participation, with 30% of Gen Zers and 26% of Millennials either informed about or engaged with alternative investment platforms. This trend is poised for robust growth, with PwC forecasting that the Assets Under Management (AUM) in alternative asset classes will soar beyond $21 trillion by 2025, which would constitute 15% of the global AUM. This surge is most pronounced among high-net-worth individuals, with billionaires allocating between 51%-54% of their portfolios to alternative investments, according to Nasdaq. The data underscores a generational shift in investment strategy that is reshaping the landscape of asset management and wealth accumulation.
"Asset managers can take advantage of this massive global growth opportunity if they’re innovative. But it’s do or die, and there will be a ‘great divide’ between few have’s and many have not’s. As a result, things will look very different in five to ten years’ time and we expect to see fewer firms managing far more assets significantly more cheaply."
Tony Oputa, PwC Financial Services
Hong Kong Launches Academy to Become Leading Hub for Family Offices
Hong Kong is setting up a new academy to strengthen its position as a global hub for family offices. On Tuesday, the Financial Services Development Council (FSDC) established the Hong Kong Academy for Wealth Legacy, chaired by Adrian Cheng of New World Development. The academy aims to attract family offices and next-generation wealth owners by providing networking, knowledge sharing and talent development. Board members like Sino Group's Daryl Ng and UBS' Amy Lo will offer guidance based on their expertise. The initiative aligns with Hong Kong's goal to have 200 family offices by 2025. The government believes the academy will create a competitive environment through events and training. UBS' Lo stated the academy will meet growing needs for succession planning and wealth transfer. The launch indicates Hong Kong is pulling out all stops to become the principal Asian center for managing family wealth legacies.
"Family offices have become integral to Hong Kong’s asset and wealth management sector...The city’s dynamic financial ecosystem, cutting-edge financial infrastructure, and top-tier professional service providers make it a natural destination for international family offices."
Adrian Cheng Chi-kong, New World Development
Rep Roundup: Navigating Advisor Shifts 🚨