In this episode, I discuss my role as the "critical friend" within the family office investment team.
A "critical friend" in the context of family office investments is a trusted advisor who provides constructive, impartial feedback and guidance to the family and their investment team. This individual is not directly involved in daily operations, nor are they a family member, which allows them to maintain an objective viewpoint.
Why is this important? It performs the function of someone that can provide an outside view and provide an opinion on a new investment, or manager or reporting structure with no skin in the game.
The aim here is to provide guidance and to act as the advocate (external and internal).
What does this mean in practice? I go through some specific examples of my interactions such as:
1) Does this investment fit within our investment policy guidelines
2) Are we getting what we need from our advisers
3) Are the benchmarks appropriate
4) Are all stakeholders being listened to
5) Does everyone understand the investment
6) Are the fees being charged appropriate
7) Is the structure of the investment appropriate
8) Has the due diligence been done
Hope you enjoy the first episode of 2025.
For more insights into family offices and their investments, operations and technology, subscribe to the Sherpa newsletter at: hallroad.com.au.
Cheers
Shaun.
“Hall Road Investments Pty Ltd is a Corporate Authorised Representative (CAR No. 001279456) of Non Correlated Capital Pty Ltd (AFSL No. 499882). Shaun Parkin is an Authorised Representative (AR No 001279458) of Hall Road Investments Pty Ltd (CAR No. 001279456) and is authorised to provide general advice to wholesale investors”
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