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Matthias Knab reports from the GAIM Invest FoF conference in Geneva: William Tyne is Director of Alternative Investments at Bessemer Trust. The U.S. based multi-family firm was established 1907 as a family office for the Phipps family (co-founder of Carnegie Steel) and opened to non-family investors in 1974. Since then, the company has grown to 12 offices and 650 employees. The family office has 1800 clients and and an employee:client ratio of 1:3, which Bessemer believes is the highest employee to client ratio in the wealth management industry. Since 1999, Bessemer has invested in hedge funds.

From 2003 to 2004, the ultra high networth market (at least $30m in liquid assets) grew 8-9% to 77,500 individuals.

High networth families want a range of services, which include investment management, financial and estate planning, and services related to philanthropy, personal banking, family governance, trusts/administration and tax planning.

Bessemer believes the family office platform is the preferred platform for wealthy individuals. The clients look for:

• Objective advice (no performance or asset based bonuses, but subjective bonuses are used)
• Independent, conflict-free operations: generally a family office has no interests in fund firms, asset management companies, broker dealers etc.)
• Stable, experienced staff ("clients hate staff turnover"). Family offices are not part of the M&A game of other sectors like investment banks and as......................

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