The Future of Investing: Future of advisory—The role of networks and community in high-touch advisory

The article highlights the evolving landscape of high-touch advisory services for ultra-high-net-worth (UHNW) individuals and institutions, emphasizing the need for more sophisticated and integrated platforms. Current systems often fall short in handling complex portfolios, lacking automation in managing private funds, margin accounts, and derivatives. This gap between service demands and delivery capabilities is widening, as UHNW clients increasingly require bespoke portfolio management tailored to their unique investment strategies.

UHNW investors are adopting more complex investment techniques, engaging in co-investments, direct investments, and managing private credit arrangements. This shift necessitates a "portfolio of one" approach, posing challenges in communication and decision-making, particularly as family offices transition to the next generation. The generational shift is fostering a "club-like" mentality, with families collaborating on shared investment opportunities, often facilitated by social and business connections.

The trend towards multi-family offices and personalized investment teams is growing, with some families developing their own technology to manage their complex asset structures. These bespoke systems often include customized messaging, voting apps, and accounting solutions, which are shared among families, bypassing traditional private banking platforms. This shift reflects a move towards greater autonomy and collaboration among UHNW families, as they seek to tailor their investment strategies to their specific needs and preferences.