A large family office embarked on an alternative investment strategy. The family office decided to invest in private equity under a fund of funds structure, thereby ensuring instant diversification and the potential for greater returns on their investment.
A general partner (GP) and limited partnership (LP) structure was established. The family office segregated its cash at the investor level, creating a number of investors; some in-house monies such as the pension pool and employee benefit trust; and some family and friends investors. The GP entered into an Advisory Agreement with the investment advisor, who was part of the Family Office Investment Division. In relation to the services provided by the investment advisor, the GP pays an advisory fee to the investment advisor out of the management fees, received by the GP from the LP.
Administration, accounting, company secretary, registered office, compliance services and director services.