Monaco is a place of extreme wealth, despite its relatively small size. This principality is home to many hedge fund and wealth managers as well as a number of family offices. Monaco is fast-becoming one of the most popular destinations in Europe of family offices. As more and more wealthy individuals and families move to Monaco, it is expected that the number of family offices in the city will continue its impressive growth.
The following free Guide to Monaco Family Offices will help you better understand Monaco family offices and provide you with resources to learn more about Monaco. You should also check out our 100% free book on family offices.
Introduction to Monaco
First some background about Monaco: Monaco is a sovereign city state with a high population of around 35,000 for encompassing less than a square mile. Monaco is geographically situated on the French Riviera, bordering France and located just miles from Italy. The principality has the world’s highest GDP per capita at just over $215,000.
The principality is home largely to wealth individuals and professionals who have moved to the city for a variety of business and financial reasons including the high concentration of wealthy and powerful people; the proximity to nearby destinations including London, Paris, Italy and other business centers; and, perhaps most importantly, because Monaco has zero personal income tax. But people gravitate toward Monaco also because it is simply a great place to live: Monaco is extremely safe with a large police presence, has a well-regarded education system and is located along the beautiful French Riviera.
Family Offices in Monaco
Over recent years, Monaco has become home to more and more family offices to serve the very wealthy families and high net worth individuals that reside in the city. Monaco is now ranked among Switzerland and London as one of the most popular European locations for family offices. One estimate places the number of family offices in Monaco to be at least 40. It is reasonable to assume that this number will grow as more and more wealthy individuals and families take up residence in Monaco.
The zero personal income tax is undoubtedly a draw to wealth individuals and families that would like to preserve their wealth. This explain, in part, why so many wealthy people reside in Monaco and, in turn, why there are so many family offices in the city to serve that growing wealthy community. For many reasons, Monaco has become one of the most popular emerging destinations for family offices in Europe.
I recently served as the opening day chairman at GAIM International 2011, the largest hedge fund conference in the world that takes place every year in Monaco. The event attracts dozens of local family offices each year from Switzerland, Europe in general and Monaco. In addition to being a great chance to contact family offices, the GAIM International conference has further solidified Monaco as a top destination for family offices and alternative investments.
Growth of Financial Professionals in Monaco
Another reason that Monaco has a bright future as the home for family offices is the fact that there is a great influx of hedge fund managers and other wealthy financial professionals moving to the city state. Monaco is increasingly becoming a home for the super-rich and wealthy hedge fund managers who are seeking to avoid the mainland taxes by commuting daily from Monaco to the UK. More and more hedge fund managers are arriving in Monaco, largely drawn by the closeness to European financial capitals, most notably London.
It seems likely that the number of hedge funds registered in Monaco will rise in the coming years given its low taxes and non-EU status, compared to Britain, which recently raised taxes on the wealthy and recently introduced regulation by the European Union that targets hedge funds. A testament to the popularity of Monaco in the hedge fund industry is the fact that a widely attended hedge fund conference takes place in the principality the four-day GAIM International investment conference for hedge funds in Monaco.
So, as more hedge fund and financial executives seek refuge from taxes in near-by countries, Monaco family offices seem likely to benefit as these individuals look to family offices to help manage and grow their wealth.
Monaco Family Office Resources Guide
Monaco Family Office Resource #1: The Carey Group has written an excellent primer on Monaco Family Offices that will help you understand how family offices are set up in Monaco. Click here for this resource.
Monaco Family Office Resource #2: If you are looking for contact details of family offices places such as Monaco you may want to consider using a Family Offices Database. A Family Office Database provides you with the complete contact details for 100′s or sometimes even up to 1,000 global single and multi-family offices within an easy to use Excel spreadsheet format. Learn more about this by clicking here.
Monaco Family Office Resource #3: Here is an interesting story how Monaco went from Single Family Offices to transforming into Multi-Family Offices to help meet the diversified needs of their wealthy clientele to better support them in their wealth management strategy.
Monaco Family Office Resource #4: The article talks about Monaco’s financial infrastructure along with the family office license they offer. The article goes into explaining the structure of their Family Offices and the activity they receive from both Single Family Offices and Multi-Family Offices.
Monaco Family Office Resource #5: The interview with Olivier Franceschelli who is the head of Private Banking in Monaco, talks about his outlook on the importance of linking private and investment banking, and where he sees the future of finance going. Olivier also mentions the growth of the Family Offices that are currently settled in Monaco.
Monaco Family Office Resource #6: This article talks about the banks in Monaco. With Monaco’s high income and a well diversified economy, the banking sector is relatively large. Since Monaco has no personal income tax it has attracted a number of wealthy residents.
Monaco Family Office Resource #7: This video gives a nice look into the economy of Monaco.
Are you an employee or manager of a family office in Monaco? Then we’d like to keep in touch with you. Simply send us an email at Richard@RichardWilsonCapital.com