For family offices, benefits from the economies of scale are critical so it is best not to opt for break-ups, according to Jimmy Lam, the chief investment officer of Singapore's Pacific Eagle Asset Management.
Similar to other fields, there are many benefits from economies of scale for family offices and they should retain critical mass if possible.
«The bigger the amount, the better it will be. So, it is unwise to have one family office broken up into many family offices over time,» said Jimmy Lam, chief investment officer of single family office Pacific Eagle Asset Management Endowus WealthTech Conference 2023 in Singapore.
Size Matters
According to Lam, some of the benefits enjoyed by larger family offices include the ability to hire top talent, access to more products and upgrades in various functions. There are also opportunities to co-invest with global players in areas that may sometimes be complementary to a family’s existing business.
Pacific Eagle runs the family wealth of Indonesian businessman Sukanto Tanoto. Tanoto owns Royal Golden Eagle, previously known as Raja Garuda Mas, which is an industrial group with businesses in paper, palm oil, viscose, construction, energy, property and asset management.
