Wealthy millennials usher in ‘golden age’ of philanthropy; 44 percent of family businesses surveyed struggle with succession planning
SAN FRANCISCO--(BUSINESS WIRE)--Building on its pioneering work in Family Dynamics and Family History, Abbot
Downing is launching a new Institute for Family Culture. The
institute, designed as an academic center and think tank, will have
increased focus on Family Business Transitions and Social Impact
Analysis to meet the growing demand for succession planning for family
businesses and measuring the social outcomes of giving and investing
goals.
“Our clients are increasingly interested in high-impact philanthropy to
make a greater difference in the causes they care about,” said Arne
Boudewyn, head of the Abbot Downing Institute for Family Culture.
“Younger clients in particular have an interest in analyzing and
understanding social impact to fulfill often highly meaningful and
personal goals. Impact investing and analysis are among the most
difficult challenges facing these families, especially given the global
philanthropic trends toward helping achieve large-scale change.”
Boudewyn cited a study of next-generation donors who are projected to
inherit nearly $60 trillion over the next four decades and allocate
almost half to charity, ushering in a “golden age of giving.”1
Another survey shows that 33 percent of ultra-high-net-worth millennials
say they would increase allocations to impact investments once they
control the family investments.2 With that in mind, Abbot
Downing will work with clients to address their goals for philanthropy,
investments, entrepreneurship and social networks, he said.
He also noted that family businesses — which employ 60 percent of
workers in the U.S. and create 78 percent of jobs3 — struggle
with succession planning. According to PwC’s
2017 U.S. Family business survey, 44 percent of those surveyed say
that succession planning will be a challenge in the next five years.
To address these growing demands and other needs of ultra-high-net-worth
families, Abbot Downing created the Institute for Family Culture to
expand on its 13-year-history in offering Family Dynamics and Family
Business History services. The institute has a highly experienced
consulting team of PhD-level and other advanced-degree professionals
with backgrounds in education, psychology, history and business. These
experts will provide strategic advice, ideas and plans grounded in
contemporary research and the latest best practices in family dynamics
in the context of wealth, achieving social impact, the discovery and
preservation of family and business histories and planning for
significant family business transitions.
With its expanded services and new name, the Abbot Downing Institute for
Family Culture now has four centers focused on:
-
Family and Business History – To help families and businesses
learn about their past as a bridge to planning for the present and
future, by discovering their histories and cultural roots.
-
Family Business Transitions – To support family enterprise
priorities such as leadership transitions, stakeholder relations,
family employment policies and governance models. The center provides
timely transition support before, during and after liquidity events,
such as the sale of a family business.
-
Family Dynamics, Education and Governance – To help manage
family dynamics, achieve cultural alignment, prepare and educate
next-generation family members for future roles and responsibilities
and implement effective processes for family decision-making.
-
Social Impact Analysis – To help clients analyze and
understand the social impact, social changes and/or social value of
investment strategies, organizations, activities, projects, programs
and policies.
Boudewyn and his team collaborate closely with the Wells Fargo Private
Bank and Middle Market Banking group, whose nationwide teams support
many companies through transitions, including a majority that are
family-owned businesses. Middle Market Banking noted the recent rise in
business transitions, with U.S. merger and acquisition activity up 27
percent in 2017.4
As part of its client-education strategy, Abbot Downing also has
collaborated with or featured experts from institutions such as Harvard
University, Stanford University, Yale University, the Aspen Institute,
the University of North Carolina, Northwestern University, 21/64 and
Nexus Global Youth Summit. The firm works with these partners to help
create social networking and experiential learning opportunities for
families who wish to discuss common interests and exchange successful
strategies pertaining to family and community.
About Abbot Downing
Abbot
Downing is a leading provider of financial services to
ultra-high-net-worth clients and family offices, as well as foundations
and endowments. Teams of local professionals are dedicated to each
client family to provide specialized knowledge in asset management;
trust, fiduciary and administrative services; private banking and custom
credit solutions; planning, family history, family dynamics and
education services. As of December 2017, the firm has $43 billion in
client assets. The original Abbot Downing built the iconic stagecoaches
that have come to represent Wells Fargo.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based
financial services company with $2.0 trillion in assets. Wells Fargo’s
vision is to satisfy our customers’ financial needs and help them
succeed financially. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, investments, mortgage, and consumer and
commercial finance through more than 8,300 locations, 13,000 ATMs, the
internet (wellsfargo.com) and mobile banking, and has offices in 42
countries and territories to support customers who conduct business in
the global economy. With approximately 263,000 team members, Wells Fargo
serves one in three households in the United States. Wells Fargo &
Company was ranked No. 25 on Fortune’s 2017 rankings of America’s
largest corporations. News, insights and perspectives from Wells Fargo
are also available at
Wells
Fargo Stories
.
Abbot Downing provides products and services through Wells Fargo Bank,
N.A. and its various affiliates and subsidiaries. Some alternative
investments and complementary strategies may be available to
pre-qualified investors only. Wells Fargo Bank, N.A., is a bank
affiliate of Wells Fargo & Company. Certain products and services
offered subject to credit approval or credit qualification. Wells Fargo
Bank, N. A. Member FDIC, NMLSR ID 399801
1) Next
Generation Impact: How Next Gen Donors Are Revolutionizing Giving,
by Michael Moody and Sharna Goldseker
2) 2017 Oppenheimer
Funds/Campden Research report, “Coming of Age: The Investment Behaviors
of Ultra-High-Net-Worth Millennials.”
3) Harvard
Business Review, Leadership Lessons from Great Family Businesses
4)
The number of announced U.S. transactions increased from 1,637 in 2016
to 2,079 in 2017 according to Thomson One, reported January 6, 2018.
Investment and Insurance Products: • NOT FDIC Insured • NO Bank
Guarantee • MAY Lose Value
