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  • Welcome.

    I'm JD Foote, founder of the Family Capital Club: a private, highly engaged group of leaders of legacy families networking, learning, and building the foundation for the continued success of their families.

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    My wife and I are in mid-life, have four children at home, and want our family to thrive long after we're gone. 

     

    Financially, we are Generation One in our family's journey, becoming 'immigrants to wealth' (as per James Grubman's excellent book 'Strangers in Paradise') from a family of artisans through small and medium business investments in New Zealand and the United States although I am also a psychiatrist in part-time private practice.

     

    My 'second act' is preparing my family to thrive through the generations, and supporting others to do likewise.

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    My clinical experience has taken me 'behind the scenes' in thousands of families over the years, and what I saw concords with my extensive study of family wealth:

    • The majority of families that achieve wealth see it dissipated by the third generation ('shirtsleeves to shirtsleeves in three generations')
    • To steward Family Capital in all its forms is no mean feat
    • There are few resources available to support those families with a generational mindset and financial assets that, while substantial, fall below the level required to qualify as 'ultra-high net worth' or to support a family office

     

    I have lost count of the wealthy but unhappy, poor and desperate, and demotivated and disengaged in midlife clients I've met over the years.

     

    The common factor is a lack of purpose and directionality - and framing this in terms of Family Capital and cultural transmission is the key.

     

    A goal beyond the self, meaningful connection and contribution, and a vision beyond a lifetime.

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    Financial assets are necessary but not sufficient for a family to thrive through the generations.

     

    The Family Capital framework acknowledges all six forms of 'capital' in a legacy family:

    • Cultural capital - the ways of looking at and behaving in the world that have made and will continue to make family members 'successful' in the broadest sense
    • Intrafamily capital - healthy and mutually beneficial relationships between all family members
    • Human capital - the knowledge and physical and psychological wellbeing of family members
    • Financial capital - investments of all kinds
    • Social capital - the relationships of the family with the wider world, including business networks and philanthropy
    • Structural capital - the systems that support the maintenance and development of Family Capital

     

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    The visual metaphor for Family Capital used in the Foote family

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    Unopposed, time and mathematics have an erosive effect on families - descendants multiply and bonds weaken; capital is divided; systems fall into disuse; good work decays or is forgotten.

     

    Continued flourishing of a family requires a culture of maintenance, repair, and new work.

     

    Growth in family census is geometric - two becomes four, four becomes eight, eight becomes 16, and so on. It is nigh on impossible for a single business success to continue to support succeeding generations to the same level it did their predecessors, and especially not when coupled with the natural degradation of cohesion and culture that time also brings.

     

    The Family Capital approach responds to these forces with a process of conscious planning and revisiting of plans, and the handing down of the family playbook supporting success in each generation to come - doing our best in our lifetimes to build a thriving generation and a living system for the use of our children, grandchildren, and beyond.

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    Some family leaders become discouraged when they survey the literature and popular press with respect to wealthy families and their trajectories over generations.

     

    'Shirtsleeves to shirtsleeves in three generations' is an aphorism that exists in many cultures, and clearly does tend to prove true.

     

    However, many successful families are never in the limelight, but continue to set up the next generation for good things.

     

    We don't hear about the successes, perhaps by virtue of their continued thriving making them uninteresting - at least for those who profit from schadenfreude.

     

    We should pay attention to the cautionary tales, but must not become apathetic about the prospects for our own family.

     

    As with parenting, consciously trying puts us well ahead of the pack - and likely to succeed.

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    The vision for Family Capital Club is to support family leaders in stewarding Family Capital.

     

    Member feedback and requests will be critical in shaping our activities, which are so far planned to include:

    • The digital community, where we can tackle together the challenges and opportunities common to wealthy families with a generational mindset - including family issues, business strategy, investing (including sharing and analysing opportunities), and charitable giving (to balance connection and privacy, user names are 'Firstname LastInitial' e.g. John S)
    • Monthly workshops on building Family Capital, portfolio construction, investment due diligence, areas of special challenge, book discussions etc
    • Expert speakers on important topics including wealth management, asset protection, succession planning, education
    • Networking events, virtual and in-person
    • Peer councils of four to eight families for ongoing collaboration (optional)
    • In-person retreats where we can learn together from experts in relevant fields, network, and enjoy a sense of community with likeminded families (the first Family Capital retreat is slated for autumn 2024, in Colorado or the Catskills)
    • Member library including whitepapers, templates (family meeting agendas, family exercises, workbooks etc), and reports
    • Courses to guide family leaders in their journeys to become intentional about Family Capital, including developing culture and systems to support it, communication, conflict resolution, financial literacy for younger members
    • Special interest groups including SMB investors, professionals, and health
    • Access to private equity and other investments not otherwise readily available, possibly with club syndications or 'feeder' funds
    • Shared philanthropy projects for those who are interested and aligned in their charitable goals
    • Club discounts on valuable services for member families
    • Options for facilitated family meetings and 'legacy coaching'

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    Family leaders often ask: "if we 'only' have X million, can we even be a legacy family?"

     

    My answer is a resounding 'yes.'

     

    There is nothing to stop a family at any level of wealth from adopting the Family Capital approach, though the club is necessarily pitched at a more specific audience.

     

    As I wrote the Family Capital manifesto, I had in mind the family not-so-different from our own i.e. high or very high net worth - at the time of writing, USD$1-30 million of investable assets. The challenges and opportunities are broadly similar across this wealth range.

     

    This is the threshold for membership of Family Capital Club i.e. accredited investor status based on investable assets OR a notional interest in family assets at that level OR a portfolio greater than USD$3 million irrespective of debt.

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    The club will launch when we have twelve founding member families. To recognise their early commitment to the club, dues will be reduced by half for the lifetime of the family's membership.

     

    Why should I join?

    • If you are Generation One in your family's journey, and wish to prepare your family to thrive long after you are gone.
    • If you are Generation Two or later in a family of means, and hope to see greater cohesion and improved function in your own branch of the family or the family as a whole.
    • If you would be helped in your Family Capital mission by cooperating with other families like you.
    • If you would value a sense of camaraderie and shared goals in a private and confidential community.

     

    The admission process

    • After receiving your application we will arrange an informal meeting to understand your context and reasons for interest in the club, answer any questions you may have, and establish whether the club is a fit for you.
    • You may be asked to furnish a letter from your accountant or provide a brokerage screenshot or similar, confirming your financial position.
    • If you are invited to join, you will be asked to make payment for your first year of membership.
    • You will then be enrolled as a member of the club, and provided with credentials to enter the online community when the club launches.

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    Your goals and dreams for your family are, of course, specific.

     

    I am sure we can agree, though, that our broadest goal is to see our families thrive - whatever that means to each of us who has been charged with the responsibility of leading this generation and preparing the way for the next.

     

    I  congratulate you on your desire to be intentional about your family's future, and if you're inspired by the Family Capital approach and can see the value of the club, you can apply to join now.

     

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    JD Foote

    jd@familycapital.club 

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