FINTRX<\/a> has identified 137 family offices in the Dallas-Fort Worth area out of 2,387 nationwide, according to data shared with The\u00a0Dallas Morning News, although many family offices are not publicly trackable.\u00a0<\/p>\n![\"The]()
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The Old Parkland campus is the city’s hub of influential family offices.<\/p>\n
Crow Holdings<\/p>\n
Here are five things to know about family offices:<\/p>\n
They invest in direct deals, not just public markets<\/p>\n
Many family offices have become magnets for private equity and companies seeking direct investment.\u00a0<\/p>\n
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\u201cSome people just want to be deal shops,\u201d said Carter Tolleson, CEO of multifamily office Tolleson Wealth Management. \u201cNobody wants to be left out. Everyone wants to go to the country club and say they were in the SpaceX IPO.\u201d<\/p>\n
In Dallas, family offices often team up on deals and share ideas, with the exclusive Old Parkland as a hotspot.<\/p>\n
North Texas family offices still invest in the state\u2019s historic oil and gas and real estate industries. However, wealth advisers, family office staff and lawyers said they\u2019re also diversifying and investing in industries such as technology, AI, AI infrastructure, private credit, medical innovation and financial services.\u00a0<\/p>\n
Many family offices invest in the industries that made their founders money. In North Texas, common sources of wealth include oil and gas, real estate and insurance.\u00a0Others seek out a variety of investments.\u00a0<\/p>\n
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Each family office looks different<\/p>\n
Family offices hire staff to handle investments, estate planning, legal affairs, accounting, philanthropy, household staff, homes and even travel. They might have chief investment officers or chief executive officers.\u00a0<\/p>\n
\u201cTheir wealth has either gotten so large or so complex that they need someone full-time helping them with structure, and they want to do so in a somewhat private nature, where they would hire people beholden to them,\u201d said Jamie\u00a0Lavin Buzzard, regional head of investments and advice for the south region of J.P. Morgan Private Bank.<\/p>\n
Some family offices are more investment-focused than others. Staff numbers can vary from a few to 20 or more, and they may outsource tasks to financial firms. \u00a0<\/p>\n
Brendan McGuire, regional president at PNC, used to work as a technology banker in Atlanta. There, \u201centrepreneurs would build a business, they would sell it, they\u2019d monetize it and they would start another business.\u201d<\/p>\n
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When it opened in 1986, the Crescent in Dallas’ Uptown district was the largest and most elaborate private real estate project ever done in the area.<\/p>\n
Crescent Real Estate<\/p>\n
In Dallas, \u201cI saw these entrepreneurs take that money and structure it into this family office concept,\u201d he said.<\/p>\n
Major North Texas family offices include Crow Holdings,\u00a0Deason Capital Services, the Hersh family\u2019s HFI Capital Management, firms associated with the Perot, Bass and Hunt families and philanthropist Lyda Hill.<\/p>\n
There are also multifamily offices\u00a0\u2014 including\u00a0Tolleson Wealth Management, Legacy Knight and Cresset\u00a0\u2014 for those who don\u2019t want to spend money on a single family office.<\/p>\n
\u201cWhen we\u2019re pitching our services, I say, \u2018we will do everything that you don\u2019t want to do, so you can focus on what you want to do,\u2019\u201d Tolleson said.<\/p>\n
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They\u2019re concerned about succession<\/p>\n
Preparing the next generation to steward a family\u2019s wealth is a top concern as the \u201cgreat wealth transfer\u201d begins.<\/p>\n
Some family offices find ways to get their children involved in early conversations about money or philanthropic work.\u00a0<\/p>\n
Others are less prepared, though. Kate Flume, senior managing director at the family office run by Angeles Investments, said tax and estate plans often get \u201cshelved,\u201d but updating them is key to smooth succession.<\/p>\n
They\u2019re personal<\/p>\n
Decisions about spending can get complicated when family members have different interests and personality types.<\/p>\n
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\u201cIt is really important to know what the purpose of the wealth is and what are the values that the family holds dear, and how do they\u00a0operationalize those things?\u201d said Emily Bouchard, who consults family offices in Texas.<\/p>\n
Family dynamics can also get complicated when assets get involved.\u00a0Bouchard posed a Texas-friendly hypothetical: A ranch may get passed down by grandparents that some families want to preserve and others want to update. Disputes can also arise over income-generating properties,\u00a0she said.<\/p>\n
They\u2019re very private<\/p>\n
Many single family offices like to keep their investments private.<\/p>\n
That\u2019s made easy since they aren\u2019t required to register with the SEC, which critics say is unfair. Allison\u00a0Tait, a law professor at the University of Richmond, said people deserve to know what family offices are investing in because they\u2019re impactful.<\/p>\n
\u201cIt\u2019s important for us to think about what type of legal exemptions we give to high-wealth families because at a certain point they should be treated more like a corporation,\u201d said Tait.<\/p>\n
Those who work in the family office say that unlike traditional investment firms, they\u2019re managing their own family\u2019s wealth.<\/p>\n
\u201cFamily offices are deeply personal. They\u2019re relational, they\u2019re family,\u201d said Flume. \u201cIt\u2019s a private operating business.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Developer Crow Holdings plans to expand Old Parkland with a second phase of the eastern portion. Courtesy of…\n","protected":false},"author":2,"featured_media":371116,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[102,104,103],"class_list":["post-371115","post","type-post","status-publish","format-standard","has-post-thumbnail","category-dallas","tag-dallas","tag-dallas-headlines","tag-dallas-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/371115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=371115"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/371115\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/371116"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=371115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=371115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=371115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}