Family Office Services - ZEDRA

Family Office Services

We recognise the challenges that considerable wealth can bring. The modern world provides many opportunities for wealth creation, but also poses diverse threats, including political instability and family disputes. International exposure is a further complication, since wealthy families increasingly have interests in more than one country, with associated legal and tax complications.

We see many people setting up a family office, determined to control the destiny of their own money. Without proper planning and good governance, this can bring a host of practical challenges which are easy to overlook, ranging from administration and reporting to IT security. As a family office owned business we fully understand these issues and offer services to others which reflect the services we use ourselves.

Some family offices may use these solutions to complement their current approach. For other families, the costs and complexity of setting up a single family office may simply be unattractive, so they prefer ZEDRA to do all their administration for them. We can offer a tailored solution where the family can choose all, or any part, of our Family Office Services to meet their particular needs.

Ali Sarikhani and I have worked closely together to form ZEDRA. Ali has worked in the trust and fiduciary services industry since the early 1980s and has formed his own family office. My perspective comes from being a member of my own family office and also being the global CEO of ZEDRA. Together Ali and I have designed ZEDRA Family Office Services, based on our extensive experience of looking after our own assets, to help other families meet the diverse issues that wealth can bring.

Niels Nielsen

Foreword

ZEDRA FAMILY OFFICE SERVICES

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ALL CLIENTS ARE VERY IMPORTANT

TO US AND WILL BE EXTREMELY WELL

LOOKED AFTER

About ZEDRA

ZEDRA offers a bespoke, independent and entrepreneurial approach.

ZEDRA is owned by a family office and its staff (not by a private equity manager). Although ZEDRA is a new brand, parts of the business it operates go back for over fifty years.

ZEDRA comprises over 500 people spread over 13 countries, each of whom has considerable experience of looking after demanding family offices and high net worth private clients. Our personal approach is applied to all ZEDRA’s clients, be they family offices, individuals or corporate clients.

Our aim is to make each client’s life simpler and easier. ZEDRA can be nimble and flexible. Our business is based on providing excellent service with strong governance and full transparency. We pride ourselves on ensuring that the service we provide is one which exceeds the expectations of the most demanding client.

ZEDRA has a strong team, brought together from different backgrounds, from legal to operational, with complementary skills to provide tailored solutions. ZEDRA Group has assets under administration exceeding £60 billion, which include family businesses, real estate, art and other private assets as well as financial investments. We help to secure these assets through a variety of legal structures in a number of different jurisdictions.

All clients are very important to us and will be extremely well looked after. Each client will have a single relationship manager. Investment has been made in technology systems which will enhance each client’s experience.

ZEDRA offers a cost-effective, high quality service in keeping with the quality of service provided to its family office owner.


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Our Approach

The ZEDRA team will spend time with each family to ensure that we have a full understanding of the family dynamics and the many issues which the individuals are facing or may face in the future.

Families change over time so the challenges they face will be different, but most are concerned about planning for succession and long term governance of wealth. Intergenerational wealth transfer is an issue which many families are currently facing.

Decisions on how the wealth should be structured and managed are key. These naturally include tax considerations, investment return expectations (plus due diligence on any service provider) as well as family decisions about how the wealth is to be used. Many families want to understand the benefits and efficacy of pre-nuptial agreements (and, on occasion, post-nuptial agreements too) as well as considering wills, powers of attorney and asset holding structures.

We recognise that ensuring the family agrees on a long term strategy and its own governance is an important issue which can often be overlooked.

Throughout our engagement we will remain close to the family and be on hand to assist with any discussions which arise.

AT ZEDRA WE PROVIDE A HIGHLY TAILORED SERVICE; WE LISTEN TO WHAT OUR CLIENTS WANT AND WE

MAKE SURE WE DELIVER IT



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/ An independent review is undertaken of a client’s assets and a detailed inventory, including valuations, is prepared

/ Format and level of detail will depend on the client’s requirements

/ A single consolidated report on all or specific assets in the portfolio can be provided, with a level of detail and at a frequency required by the client

/ Based on family circumstances, objectives and wishes, ZEDRA can assist a family in making succession plans

/ ZEDRA uses trusts, foundations, private funds and/or companies to protect wealth, and can help to arrange specialist insurance (including life cover)

/ We have close links and strong relationships with legal and tax experts in all asset areas

/ ZEDRA can act as a “family office” for clients

/ The latest thinking on governance and reduction of risk will be used

/ A client can avoid unnecessary employment costs and reduce the number of administrative assistants required to look after family assets

/ Personal use and investment property management services

/ For personal use property, ZEDRA provides a range of services from cleaning and maintenance to insurance and fridge stocking or catering

/ For investment property, ZEDRA provides a full management service inclusive of arranging tenancies and general maintenance

/ ZEDRA can provide independent monitoring and benchmarking of family office investments

/ ZEDRA’s Fiduciary Investment Services team oversees ZEDRA’s clients’ investment portfolios with a total value of around £6bn

/ ZEDRA is independent of any investment manager, so will always act in the clients’ interests to get the best for them

/ Assistance in scoping, running and delivering a philanthropic project

/ Regular reporting on projects, often measured against agreed goals

/ Assistance with effective governance

Wealth Review “The Asset Book”

Asset Monitoring and Benchmarking

Succession

Risk MitigationPhilanthropyProperty

Management

Marine and Aviation

/ ZEDRA can provide holding structures for the acquisition of yachts and aircraft

/ Administration of these assets, including VAT registration for craft

/ Arranging for the crewing and the management of craft moving into and out of the European Union

/ ZEDRA can provide all types of back office services which a family might require, including record keeping and day to day book keeping, plus asset holding structures

/ Corporate, secretarial and administration services; fund administration; accounting and reporting services are available

/ ZEDRA provides cost-effective, scaleable solutions for investment projects and holding family assets

Back Office Services

Our Services at a Glance

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A CLEAR AND COMPREHENSIVE SUMMARY OF THE FAMILY WEALTH

Wealth Review: ‘The Asset Book’

The ZEDRA team will undertake an entirely independent review of a client’s assets and prepare a detailed inventory showing all the assets owned by the family, be they financial investments, real estate, interests in private companies, planes, boats, art, jewellery or other valuable assets. This can include a valuation of each asset, indicating where the asset is kept and flagging any issues relating to the ownership and administration of the asset.

This inventory or “Asset Book” can be prepared in a format and with a level of detail agreed by the client. It can be updated on a quarterly, semi-annual or annual basis, depending on the nature of the assets and client preference.

Having such an Asset Book prepared can help a family to decide how to manage different parts of the overall wealth. Our clients find it immensely valuable to have, perhaps for the first time, a clear and comprehensive summary of the family wealth, enabling them to make fully informed decisions.

On an ongoing basis, ZEDRA can provide a single consolidated report on all or some of the assets, showing income received plus updated valuations. These reports are tailored to the family’s own needs, be it in content or frequency. Some family members may prefer to see a quarterly summary, but require an in depth annual examination of all the assets held. ZEDRA can offer different reporting models to suit each client or specific family groups. Our service is entirely bespoke and tailored to give each family what best suits their particular needs.


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ZEDRA can provide all types of back office services which a family might require, including record keeping and day-to-day book keeping. In doing so ZEDRA can act as a “family office” for each client.

ZEDRA provides trust administration and corporate services as well as fund administration, accounting and reporting services for family offices, investors and entrepreneurs.

We establish and administer trusts, companies, special purpose vehicles, partnerships, foundations, and private funds in the major jurisdictions worldwide. We also offer co-investment schemes and employee benefit trusts. We are particularly experienced at providing cost-effective, scalable solutions for investment projects and holding all types of family assets.

Back Office Services

WE ARE PARTICULARLY EXPERIENCED AT PROVIDING

COST-EFFECTIVE, SCALABLE

SOLUTIONS

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Asset Monitoring and Benchmarking WE CAN REVIEW

OBJECTIVELY THE PERFORMANCE OF EACH INVESTMENT

MANAGER

We have a highly qualified, specialist team who can provide an entirely independent monitoring and benchmarking service to clients. We can review objectively the performance of each asset pool, be they a traditional segregated mandate or private equity investments.

Ongoing scrutiny of each investment manager or adviser and the performance of the portfolio is crucial. Our team can monitor each investment mandate and flag up any concerns, identifying areas for remedial action.

In doing this, we are sharing the capabilities we use in-house to benchmark the performance of the portfolios held by trusts of which ZEDRA is the trustee. We therefore understand the fiduciary relationship and the risks associated with each asset class. We currently provide these services for over 500 portfolios representing over £6 billion of assets.

Through our asset monitoring service, our family office clients benefit from ZEDRA’s expertise. If requested by a client, we can stand in their shoes to demand the best from each investment manager, including in relation to fees.


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Property Management

ZEDRA manages both personal use and investment property.

For personal use property, we take care of all requirements ensuring that family homes are properly maintained and ready for use when required. This service can be especially valuable for non-resident owners, taking care of matters including utility bills, cleaning and maintenance, insurance and catering.

For investment property, we provide a full management service including arranging tenancies and maintenance, managing the property’s costs and revenue and providing annual accounts as well as a regular investment report on each property.

Above all, we treat the property as an investment asset. For clients who hold a portfolio of several properties, we provide an overview report of the portfolio, with a detailed breakdown of each property and its costs and income. This is available either on a standalone basis or within our consolidated reporting service. In this way, an investor can easily view and monitor their property portfolio.

ZEDRA Family Office Services provides marine and aviation structuring and administration.

ZEDRA can provide appropriate holding structures for privately owned yachts and jets.

We ensure that all the administration that goes with owning yachts and jets is properly implemented, including taking care of VAT registration for craft moving into, and out of, the European Union.

We work with operators to arrange crewing and the management of craft as well as , where needed, providing appropriate introductions to facilitate financing.

Marine and Aviation


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Succession

OUR STARTING POINT IS TO

UNDERSTAND THE FAMILY’S

CIRCUMSTANCES, OBJECTIVES AND

WISHES

Assuring appropriate transfer of wealth to the next generation is the over-riding objective of many family offices. Our starting point is to understand the family’s personal and business circumstances, together with their objectives and wishes. We work closely with appointed lawyers and other professionals to establish and administer legally robust structures which provide appropriate involvement and oversight for family members, whilst ensuring long term security and governance.

To protect wealth and ensure its succession in line with the family’s wishes, legal structures such as trusts, foundations, private funds and/or companies may be used. Depending on the solutions needed, we provide professional services to establish and operate such structures in accordance with legal requirements and the highest standards of governance.

Insurance – including life assurance – is an area requiring specialist attention. Wealthy families usually have high value, specialist assets, often held in several different countries. Life assurance can be an important planning consideration to mitigate inheritance tax exposure and to provide liquidity when it is needed. ZEDRA has close relations with specialist insurance agents to whom we can introduce clients.

We work closely with clients’ legal and tax advisers and can arrange introductions to leading firms. We have strong links and good relationships with experts in all asset areas, built up over many years. These include advisers with specialised knowledge of taxation and succession planning in relation to all types of assets, including art, financial portfolios, international real estate and yachts.

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Philanthropy

EFFECTIVE GIVING REQUIRES CAREFUL ORGANISATION AND FOLLOW THROUGH

Family philanthropic projects can be an excellent way of introducing the next generation into the responsibilities and challenges of private wealth.

Our clients understand that effective giving requires careful organisation and follow through, just like a business project.

We help to scope and administer philanthropic projects, ensuring effective governance, whilst giving family members as much, or as little, hands-on involvement as desired. Projects may focus on a specific theme of importance to the whole family – perhaps reflecting their own experiences or ties to particular countries or social groups which have resonance for them. Alternatively, a family may wish to support diverse causes, allowing individual family members to engage with projects which interest them.

We provide regular reporting, so that the family and any other stakeholders have robust and clear information on the progress of the projects, often measured against agreed goals.


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ZEDRA’s bespoke approach means that we quote individually for each piece of work.

We are always transparent and can quote on a time spent or fixed fee basis, as each client prefers.

Above all, ZEDRA is conscious of the overriding obligation on it to provide excellent value for money.

By offering this comprehensive range of services to families and other high net worth clients, ZEDRA can act as a “family office”.

ZEDRA will always be available to assist a client. It has a large number of highly trained people who can respond as and when required. This means that a client can benefit from the latest thinking on governance and reduction of risk. Using ZEDRA’s well tested procedures and systems, a client can avoid the need to employ too many back office staff. Given the increasing costs associated with employment and the related statutory benefits (including holidays, pensions, maternity and paternity entitlements), this can result in a considerable saving.

Our FeesRisk Mitigation

Confidentiality in handling a family’s information is a given.

We work with discretion and use secure processes to ensure that information is only shared with those who have the right to receive it. We can tailor our services so that, if required, different members of the family receive only certain types of information.

Information security is a key consideration. ZEDRA can provide a family office with secure information storage and administration services.

Confidentiality and Information Security


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Niels Nielsen

Group CEO

Niels Nielsen is co-founder and the Group CEO of ZEDRA. He has overall responsibility for ZEDRA’s Family Office Services.

Niels has a broad experience across financial services, family office, corporate clients and private investment, bringing together more than 15 years experience leading client facing teams. Previously, he held senior positions in companies in London, Hamburg and New York.

He earned his Bachelor of Arts in Business and Economics at Brown University, and his MBA from Yale School of Management.

Niels holds a number of non-executive board positions.

[email protected]

+44 (0)20 3794 8690

Bridget Barker

Executive Director

Bridget joined ZEDRA from Macfarlanes, a leading city law firm, with over 36 years’ legal experience. She is one of only three ‘Senior Legal Statesmen’ for private equity funds listed in the Chambers Legal Directory, 2017. Her experience in legal issues, particularly related to fundraising in the areas of private equity and real estate, is extensive.

As a leader of ZEDRA’s Family Office Services team, Bridget works with family offices to scope and structure the support they require from ZEDRA, engage appropriate areas of the group and ensure an excellent standard of overall service delivery. Bridget also has extensive experience in scoping and leading philanthropic projects.

[email protected]

+44 (0)20 3794 8690

Mike has over 20 years’ experience in managing investments and now leads ZEDRA’s Fiduciary Investment Services, which is regulated by the Jersey Financial Services Commission. Mike holds a number of non-executive board positions and is a judge for the UK Private Asset Management Awards.

Mike is responsible for the appropriate appointment of all investment mandates for ZEDRA. He works across jurisdictions with a multitude of professional investment firms and provides a totally independent and unfettered selection process. Mike’s team of investment consultants monitor and report on a quarterly basis, providing independent performance and risk reports that can be tailored to each client’s specification.

[email protected]

+44 (0)1534 844225

Mike Farley

Managing Director Fiduciary Investment Services

The Team

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Sue WakefieldTrust Director

Robert Burchett-CoatesDirector

Sue has worked in the financial services industry for over 30 years specialising in onshore trust structuring.

She has extensive experience in administering, managing and facilitating the creation of fiduciary structures for private clients. Her work with intermediaries has given her vast experience of assisting clients as part of a multi disciplinary team of trusted advisors.

Sue held a number of leadership positions within private clients and family offices facing teams before joining ZEDRA. As Director of the onshore business she delivers Trust and Wealth Planning services to ZEDRA’s existing and new onshore clients.

Sue holds the STEP Diploma in Trusts and Estates – England & Wales.

Robert has been in the financial services industry for over sixteen years and works closely with family offices, private banks, lawyers and other advisers to assist in structuring solutions for clients. He also has in depth experience of fund formation and administration, operations management for alternative funds. Robert started his career in investment banking within alternative investments and later moved into asset and wealth management

Robert has experience of global markets with the benefit of having lived and worked in US, Europe and Asia covering a broad client base. With his background in corporate and fund services Robert enhances the ZEDRA Family Office Services team and provides private clients and family offices with bespoke solutions for their wealth structuring needs.

[email protected]

+44 (0) 1606 313 280

[email protected]

+44 (0)20 3794 8692

Cayman Islands Miami

Guernsey Isle of Man Jersey Luxembourg

Netherlands Switzerland United Kingdom

Hong Kong Singapore

Australia New Zealand

North AmericaEurope

Asia and Australasia

ZEDRA Worldwide


1 Dukes Mews London W1U 3ET

+44 (0)20 3794 8690

[email protected]

zedra.com

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ZEDRA Family Office Services is a trading name of ZEDRA Corporate

Solutions UK Limited, registered in England & Wales. Number 10322669.

Registered office 1 Duke’s Mews, London, United Kingdom, W1U 3ES.

Services may be provided by ZEDRA Corporate Solutions UK Limited

and or by other companies of the ZEDRA Group.

Documents

Family Office Services - ZEDRA