In a recent ION Influencers fireside chat, host Giovanni Amodeo sat down with Nicolò Di Giacomo, Head of Family Office at Banor, to explore the evolving landscape of asset management, family office best practices, and private market trends. This deep-dive conversation provided invaluable insights for ultra-high-net-worth families, investors, and finance professionals.

Key Topics Discussed:

1. Single vs. Multi-Family Offices: Key Strategic Decisions

• Setting up a Single Family Office (SFO) requires significant resources, infrastructure, and talent—often more than families anticipate.

• Multi-Family Offices (MFOs) offer a ready-made, scalable solution with established teams and processes.

• In Italy, converting an SFO to an MFO is challenging due to differing family investment philosophies and the shift from a service to a business model.

2. Governance & Asset Allocation: The 70% Value Rule

• 70% of the value a family office provides comes from establishing clear governance, investment policy statements, and long-term asset allocation—not from picking individual investments.

• Common mistakes include:

  • Using multiple banks with identical mandates, creating false diversification.

  • A bottom-up, “pick the best players” approach without a cohesive strategy—like building a football team with ten goalkeepers.

• Formalizing rules before market downturns is crucial to staying disciplined and avoiding emotional decisions.

3. Co-Investments & Deal Sourcing: Quality Over Quantity

• To access the best co-investment opportunities, families must be in the first 10–20 calls—otherwise, they risk receiving “picked-over” deals.

• Banor’s rigorous due diligence process reviewed ~100 opportunities, advanced 10 to deep diligence, and selected only 3 investments.

• Critical to avoid being “the chicken at the table”—co-invest only where you have real expertise and a competitive network.

4. Private Credit & Semi-Liquid Structures: A Critical Juncture

• The next 12–24 months will test the resilience of semi-liquid and evergreen structures in alternatives.

• Private credit scrutiny is rising, but critics often overlook that stress in private credit likely signals trouble in private equity too.

• The market needs to see how these vehicles handle volatility, outflows, and potential gating events.

5. Talent, Technology & The Future of Wealth Management

• Italy boasts ample talent, but attracting it requires offering independence, clear growth trajectories, and competitive rewards.

• Key trait sought: Grit—the perseverance to grow and adapt daily.

• The role of the private banker will evolve toward high-touch relationship management, as AI and technology handle more analytical tasks.

Niccolò’s Market Outlook & Quick Takes

• Most Bullish Asset Classes (3-year view):

  • Buyouts (selectively)

  • Secondaries (for lower dispersion)

• Geographic Allocation: ~60% US, ~40% Europe—no major edge expected in regional bets.

• Industry Consolidation: Large asset managers will continue to gain market share, mirroring post-GFC hedge fund trends.

• Italian Family Office Space: Expect consolidation, especially if regulation increases, driving demand for scale.

Key Takeaways for Families & Investors

1. Start with Governance: Document responsibilities, define investment policies, and think like an institutional investor.

2. Rethink “Diversification”: Using multiple providers isn’t diversification if strategies are correlated.

3. Be Disciplined in Direct Investing: Co-invest only where you have a real edge and a strong network.

4. Watch the Semi-Liquid Space: The coming years will prove whether these structures are durable.

5. Invest in Talent & Relationships: Human judgment and relationship skills will become even more valuable as technology advances.

Key timestamps:

00:06 Introduction to the Fireside Chat
02:14 Single vs. Multifamily Offices: A Comparative Analysis
04:50 Understanding the Threshold for Single Family Offices
07:44 Establishing Effective Governance in Family Offices
10:22 Common Mistakes Families Make in Asset Allocation
12:16 Exploring Co-Investment Opportunities
16:41 The Future of Investment Structures in Family Offices
19:01 Assessing Risks in Private Credit Markets
21:35 Final Thoughts on the Future of Family Offices