Key Family Partners multi-family office launches in Geneva
Hugues d'Annoux and Morten Kielland have launched Key Family Partners in Geneva, a new multi-family office designed to oerate as 'a sophisticated private investment club'.
Key Family Partners is aiming to provide high net worth families with a professional structure offering state-of-the-art solutions in asset allocation, investment, risk management, reporting, administrative services, as well as advisory on education, philanthropy, family governance and estate planning. Participating families become equity partners and thus share the success of their multi-family office.
The families of the two co-founders have a long tradition in growing, managing and preserving their assets. Over several generations, they have built their fortunes in industrial and commercial activities, spanning from steel and textile manufacturing to shipping and timber.
Count Hugues d'Annoux was active for more than 20 years in banking in Latin America, USA and Europe. In 1995, he settled in Geneva to manage his family's investments in industry, real estate and finance, with an emphasis on Private Equity.
Morten H Kielland founded Key Asset Management in 1989. After the company was sold to SEB in 2008, he became Chairman of Scandinavian Investment Holdings until 2012. Co-founder and director of the First Geneva Global High Yield Fund, he is also a director of Nordic Corporate Bank in Oslo. In 2001, he was made Knight of the Order of the Oak Crown of Luxembourg.
Key Family Partners distinguishes itself by offering participating families the opportunity to become equity partners, while staff are also entitled to equity. This creates a full alignment of interests between all stakeholders. Clients thus become full-fledged partners and have a mutual interest in the success of ‘their’ family office. This close relationship further strengthens the idea of a ‘club’ approach to deals, with families happy to share their deal flow, and expand their network and investment reach.
D'Annoux says: "Unlike traditional independent asset managers, Key Family Partners is managed in the sole interest of its member families. This creates a very positive dynamic, conducive to the exchange of ideas and sharing of best solutions."
In addition to the traditional activities of a full-service Family Office, Key Family Partners gives great importance to investment. The approach is based on the Yale Model, adopted by the top US endowment funds, which emphasises alternative and illiquid investments such as Private Equity, real estate and hedge funds. Over the last 20 years, the Yale Model has generated annualised returns in excess of 12 per cent, close to double that of a classic 60 per cent equity/40 per cent bond portfolio.
Kielland adds: "Today, with bond yields close to zero or even in negative territory and very stretched valuations in equity markets, we believe this type of investment offers the best prospects for long-term investors."
To ensure a sound corporate governance, Key Family Partners has appointed a strong Board of Directors comprising five respected personalities with complementary expertise. Chaired by Thierry de Loriol, the Board also includes Declan Mc Adams, Malek Adjadj, Cynthia Muller and Stéphane d'Abo.