Family Office Insights report
This report shows the relevance of family enterprise research to understand the evolving phenomenon of family offices and family investment companies in the Nordic context. A specific focus is to highlight how individual and family identity can influence the formation and decision-making of these firms. The literature and interviews with Nordic family office principals and professional emphasize the complex interplay between maintaining family values and traditions while also adapting to professional standards and market expectations.
Key insights from the report
Socioemotional wealth theory (SEW) provides a relevant framework to understand how family and founder identity and non-financial considerations influence decision-making and perceptions of risk.
Managing the flexibility paradox
The creation of family offices and family investment companies offers flexibility and opportunities for family engagement and succession but can also introduce potential disagreements over direction and long-term development. Initiating discussions around shared and individual values and identity is crucial. Socioemotional wealth theory (SEW) and the related FIBER framework can provide a useful structure for those discussions.
Balancing familiness and professionalization
Family offices and family investment companies should strive to balance the need to align with industry standards while also leveraging their unique family identity and values to stand out. Being able to leverage the advantages provided by the family or founder identity with the need to professionalize and adapt to industry norms in order to attract external talent is essential. This necessitates identifying and communicating the distinct characteristics and benefits of working for private or family-controlled enterprises.
