008: suicidal and strategic ways to steward the family name
my case study on compounding human, social, and intellectual capital, beyond financial capital
‘It’s my last day.’
The veteran gatekeeper flicked his lighter, the flame dancing in the high-altitude gusts.
‘I wonder why this GP snitched. No one else I brought to IC had an issue with my 20% take rate. Guess it was a good run while it lasted.’
He glanced at his young protege. Her gaze wavered.
‘It’s also my last day.’
They fell silent.
‘I tried to tack on another 20%.’
The wind howled.
‘I guess I won’t be working for my father again.’
Burning bridges with family over short term gain is tragically short sighted, yet surprisingly common.
Every nextgen leverages their family for personal gain. Some just do it more honorably and tastefully than others.
I apply the following litmus test:
Am I contributing to my family equally, if not more than I benefit?
Making money is not the only way to contribute. Here are three additional forms of capital nextgens should cultivate for their family:
Human Capital
Social Capital
Intellectual Capital
human capital
Nextgens underestimate the role they play in helping their siblings figure out when is the right time to go back and work for family.
Last year, my sister worked as an architect for over half a decade and wanted a change of scenery.
What if I could encourage my sister to come back to the family office where
the family benefits from another pair of capable, trusted hands, and
my sister benefits from leveraging the family resources to pursue her dreams?
For the past five years, I have solely focused on helping my family invest like the best.
Preserving and growing the family wealth felt like the highest and best use of my time.
Until I walked alongside my sister throughout last year, addressing her concerns about working in the family office and sharing my personal experience.
My sister has since joined the family and taken an active role in our family foundation. She is redefining what philanthropy means for our family.
Empowering my loved ones to establish their legitimacy within the family legacy has now become a serious contender for the highest and best use of my time too.
Foster the conviction that family is worth fighting for.
social capital
Nextgens underestimate the influence their network can exert on their family.
When I first told my family to invest in crypto, it was met with blank stares.
Isn’t crypto for money laundering, buying drugs, and moving money offshore?
It took me the better part of 2021 to find someone who I felt might legitimise crypto in the eyes of my family.
I chased down every weak tie and showed up at industry conferences I had no business attending.
It was all worth it when I found a crypto VC that helped my family finally arrive at their aha moment.
My relentless search for our next family office whisperer continues.
Find the voice that bridges your family to the future.
intellectual capital
Nextgens underestimate the intellectual capital they can help their family accumulate.
I meet professionals, practitioners, or professors to monitor emerging investment themes such as space, longevity, nuclear, and wealthtech.
After each meeting, I ramble into my phone, record a voice note, and throw it into Gemini to create a one pager transcribing and summarising key takeaways.
Not all of these one pagers are worth sharing with my family, especially when the topic is too controversial, the follow-up action too inconsequential, or the pool of comparison too thin.
Every one pager, however, helps me gradually construct a mental model of how I should prioritise my attention across different themes.
Map the zeitgeist to prime your family for what’s next.
Now over to you.
How are you leveraging your family to pursue your dreams?
In return, how are you contributing to your family’s needs?
Are you compounding not just wealth, but also trust within your family?