Family offices are all the rage these days. Who wants to put up with the bitching and kvetching of clients when you can just do whatever the hell you want, like let it all ride on SPACs and cryptos? So much more fun that way. So that’s, like, what Adelphi Capital’s Roderick Jack and Marcel Jongen—last seen dumping their short book as quickly as possible—are gonna do. No, there’s no other reason.
Last year it lost 8.3 per cent, after a bruising fourth quarter, according to numbers sent to investors, and this year it is down 15.7 per cent.
Anyway, that’s some lucrative business. Maybe not Adelphi’s, but, you know, other family offices. And Morgan Stanley—possibly looking for something to replace another lucrative business—wants in.
The bank has spent the last four years developing a suite of products geared toward family offices… “They’ve fallen between the cracks of what had existed before,” [COO Jed Finn] said. “It’s a $5.5+ trillion segment where nobody has significant share because there’s no single offering that really can fit the various needs of the different families….”
The bank took its fund services platform for hedge funds, which custodies and tracks values across asset classes and geographies, and adapted it for the family office, creating a clean interface showing holdings and performance…. “That has become a huge source of demand from these families. They want to be shown more and different types of non-correlated investments,” Finn said.
Win-win! What could possibly go wrong?
Morgan Stanley aims to serve the richest of the rich as family offices grow to $5.5 trillion in assets [CNBC]
Adelphi Capital to become a family office after run of poor performance [FT]
Hedge fund Adelphi scrambles to close short positions with 53 reductions in three months [FN]