Acquisition International, Worldwide Finance Awards 2023 | KRONOS Advisory is „Asset Structuring Specialist of the Year 2023 – Austria“
Founded in 2009, Austrian company, Kronos Advisory (Kronos) is a specialist multi-family office. Providing impartial investment advice to its clients, the company is committed to protecting, maintaining, and optimising wealth in a way that’s sustainable. With 100+ years of combined experience in the industry, the Kronos team demonstrates expertise in investment selection and monitoring. We take a look at the company and the services it offers in more detail.
The concept of the family office is not a recent one. Dating back to the late 19th century, it’s believed that the first family office emerged from the United States in the period of rapid economic growth that began in the 1870s.The Rockefeller family established one of the first famous family offices. In 1882, when John D Rockefeller founded his company, Standard Oil, he created what he called the ‘Office of the Secretary’ to manage his family’s wealth. This later became known as the Rockefeller family office. Other families soon followed suit, forming their own family offices to handle the complex financial and administrative tasks associated with significant wealth.
The family office offers a centralised means of managing financial affairs that focuses on maintaining the family’s legacy and the wealth of future generations. The office manages investments, tax planning, estate planning, charitable giving, and more. Its concept may have evolved and expanded with time, but today, the family office is still favoured by ultra-high-net-worth individuals and families around the world. However, not all wealthy families need or want
a family office of their own. Recognising this in the 60s and 70s, financial firms began providing comprehensive financial services under the umbrella of the ‘multi-family office’. With bases in both Vienna and Linz, Kronos Advisory’s multi-family office works with clients of high-net-worth in this category. The company, founded by Sven E Rischko, offers its clients comparable results to those of a single-family office. The main difference is the smaller initial
investment required per family.
Georg explains, “By carrying out the services for several investors the costs incurred by a family office are proportional to each client. Experience shows that it’s possible to optimise investment using tailor-made advice to identify the most suitable asset structure. We achieve cost reductions that are often greater than our fee through professional negotiation of conditions. Our investors benefit from comparable advantages to those reserved for investors with their own family office.”
Kronos Advisory coordinates a large number of experts across various disciplines to provide a central office for families, private individuals, foundations, and companies. The company controls and coordinates financial services that would be otherwise isolated for the benefit of the overall assets.
One facet of the service the company offers is finding the right asset manager. Georg tells us, “Choosing the right asset manager is a major challenge. We start by defining a future strategy and evaluating a list of the most efficient providers. From the offers we receive, we’ll shortlist between three and five to enter the final selection process. It’s pretty rigorous from our side, but the ultimate decision is always made by the client themselves.”
Providing this type of impartial and well researched advice is invaluable to investors. It helps clients to reach considered and informed decisions in less time. As well as investment advice, Kronos also helps with governance, real estate and risk management, wealth structuring, and family counselling services.