Family Offices Gain Traction in Latvia
The investment strategies of wealthy families are increasingly influential in the global investment landscape, and Latvia is beginning to see a rise in Family Office investments. These specialized consultants are attracting attention from affluent families, and Latvian entrepreneurs are emerging as key players, mirroring trends in neighboring countries.
A popular method for transparent and open private investment control is the Family Office – a Latvian family investment company. While many families utilize consultant firms (who typically maintain client confidentiality), a growing number are establishing their own companies specifically for family investment management. Dienas Bizness identified two such firms in Latvia - SIA Monday and AS Alppes Capital – and will be focusing on one to better understand the preferences of Latvia’s leading investors.
What is a Family Office, and are they present in Latvia?
Essentially, a Family office is a company dedicated to growing and preserving a wealthy family’s capital for future generations. Typically, these offices are managed by professional investment specialists, rather then family members. An exception exists with first-generation Family Offices,often founded by the original wealth creators to ensure continued prosperity for their children and grandchildren.However, even in these cases, professional managers are often brought in.
This independent leadership is crucial for avoiding conflicts of interest within the family and ensuring objective decision-making. The manager’s role is to remain neutral, identify risks, and prevent emotionally-driven investment choices.
There are two primary types of Family Offices: Single-Family Offices, serving just one family, and Multi-Family Offices, which provide active management services to several families. It’s these Multi-Family Offices that generally keep their client lists private.
