Family Office & RIA Weekly Roundup

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Family Office & RIA Weekly Roundup

Volume 15

07/21/2022 (4 Min. Read)

Let's dive straight into the top stories from this past week...

Crypto Hedge Fund, Modular Capital Tests the Bear Market

Contrary to market sentiment, two investment professionals are tackling the cryptocurrency bear market head on by launching a hedge fund exclusively allocating towards the novel asset class. The firm will be called Modular Capital and has already raised $20M from a number of groups that include Multicoin Capital, ParaFi Capital, Road Capital and LedgerPrime. The fund will aim to hold "between 10 and 20 core positions, with decentralized open finance (DeFi) as a key focus". In addition, the group will seek to support new applications that improve user experience, including layer-1 and layer-2 blockchains and Web3 infrastructure applications.

“All of that was really interesting to us in terms of thinking about how you have this rich, growing ecosystem that we think is in its infancy...We think crypto is going to be a whole lot bigger when we look out five or 10 years right now"

James Ho, Modular Capital

https://blockworks.co/investment-pros-jump-into-bear-market-with-new-crypto-hedge-fund/

Spain Tourism Shows Signs of Recovery, Signaling Inflation Shrug

Amid double-digit inflation, rampant staff and pilot shortages, tourists continue to flock to Spain's major cities and beaches. Following the global pandemic, tourism dropped to historic lows and seemed to recover slowly through the first half of 2021. Surprising to many, visitor levels beat expectations, outpacing the broader European and World markets. Head of the Spanish Treasury, Carlos Cuerpo, believes this revival will have a more widespread economic effect. Much of the travel sector remains robust, with Spanish restaurants and hotels continuing to hire while generating $154B in income this year.

“Tourism has exceeded the best of expectations -- until recently it was difficult to think we could have returned to 2019 levels...Beyond a growth revision, what’s important is the positive expectations we are seeing"

Carlos Cuerpo, Head of Spanish Treasury

https://www.bloomberg.com/news/articles/2022-07-19/spain-poised-for-near-record-tourism-year-in-boost-to-economy?sref=l3FEFSDd

AssetTribe Releases Alternative Asset Industry Survey

AssetTribe, an alternative investment platform and community of family offices, HNWIs and investment professionals has published its results from a survey covering the alternative asset classes. AssetTribe engaged with over 580 investors across the U.K. and Europe, recording their opinions on the future of the alternative asset space. Many of the results came in positive, revealing 46% of respondents plan to increase their exposure towards alternatives within the next 12 months. In addition, real estate (75%) revealed to be the most popular asset class, with notables including forestry (49%), fine art (40%) and wine (38%).

“Alternatives have been a rapidly growing asset class for institutions for the last 20 years and it is clear that high net worth investors want in on the act. What was more eye-opening and pleasing to see were investors considering an increasingly diverse range of alternatives, from real estate to wine and net zero funds"

Jeremy Davies, AssetTribe

https://assettribe.io/what-we-learned-from-the-alternative-asset-survey/

Private Funding Pulse Check

Manifold Bio, a biotechnology research company, has raised $40M in its Series A funding round that included single-family office Horizons Ventures
Menlo Park, CA-based Breyer Capital has taken part in a $25M Series A deal with YOU, a private search engine
Tao Capital Partners engaged in a Series A investment with Blue Ocean Barns, an alternative feed ingredient supplier, totaling $20M
David Adelman's single-family office, Darco Capital, finalizes on a $5.3M seed deal with ReMo Energy, a renewable energy semiconductor manufacturer

https://www.fintrx.com/

Single-Family Offices Face Increasing Tax Concerns

According to a recent EY report, single-family offices conducting remote work and international operations are concerned about the additional tax considerations that come with this new remote style. To keep up with changing working environments, family offices are planning to make significant investments in digital technology platforms within the coming years. The EY survey of 250 single-family offices, including 122 from the U.S., found 72% of firms cited tax consequences as a major concern. More surprising, 67% of firms said they are worried about three or more regulatory issues causing future tax liabilities.

“Single-family offices are concerned about how new virtual ways of working will raise new tax considerations for family members, family office employees and for their broader business ecosystem...Tellingly, 64% of single-family offices are not very confident that their tax operations are high performing, which would indicate work needs to be done to remain compliant"

Bobby Stover, EY

https://www.fa-mag.com/news/taxes-among-sfos-top-concerns-68800.html

Industry M&A Wrap Up

Pathstone has acquired Washington D.C.-based RIA firm Dyson Capital Partners who oversees roughly $3.5B in client assets (Barron's)
Overland Park, KS-based RIA Mariner Wealth Advisors has agreed to acquire The Financial Services Network, a national provider of administrative, consulting, compliance and operational support for over 400 advisors, and expects to rebrand the network as Mariner Advisor Network (Yahoo)

https://www.fintrx.com/

Written by:

Andrew Popp | Data Research Associate

FINTRX delivers an industry-leading suite of private wealth data and research solutions to the alternative investment space and private capital markets. Engineered to help clients identify and access family office and RIA capital intuitively, the FINTRX platform ensures accurate and updated data and research on 850,000+ private wealth records globally. To learn more request a demo here.