Founder story: Oldřich

Life stories often follow unpredictable paths. Only in hindsight do they seem clear. That is rarely the case while we are living them. The story of Oldřich, a founding partner of Family Office Partners, could be described as several different paths eventually coming together. Whether the whole story is merely the result of chance or a series of small but sound decisions remains a source of discussion and passionate debate with friends, his wife, and his partners at the multi-family office.

Family history repeatedly shows how easily both tangible and intangible wealth can be lost within a single generation.‍

Each of us has early childhood memories of our parents and grandparents. Oldřich spent a lot of time with his grandfather, who would tell him stories about the history of the Czech lands before bedtime. When the stories reached the 20th century, he listened intently to how two world wars and successive changes of regime had affected his family. Like many other families, Oldřich’s family bears scars that may never fade.

His great-grandfather, a large landowner pejoratively labeled a “kulak,” managed over a hundred hectares of land and several estates. The family’s inheritance arrangements meant that the eldest son was to take over the property, without clearly addressing what this would mean for the rest of the family.

Not only did the wars, and eventually nationalization and collectivization, intervene, but the restitution process also proved disastrous. His great-uncle had no children and, toward the end of his life, was persuaded to marry someone he had met only a few years earlier.

Oldřich spent two years working with certified genealogist Tomáš Biskup to create a family chronicle dating back to 1630. It is a source of wisdom, painful lessons, and remarkable family stories. Perhaps that is why Oldřich felt a responsibility to make sure that a similar situation would never happen again.

From today’s perspective, with access to information and opportunities around the world, he says he would feel he had failed his ancestors if he did not put these matters in order. A similar family “reset” should never happen again, not primarily because of the wealth that could be lost, but because of its potentially devastating effect on the values and principles of future generations. What is good in a family can fade for generations.

Practical experience from the DotCom bubble and the Global Financial Crisis is invaluable.

Although Oldřich originally leaned toward IT, his transition into the financial world was rapid. He became fascinated by how markets function and, in particular, wanted to understand how to manage the money he had earned. A few meetings with private banks, combined with a healthy dose of youthful confidence, led him to begin navigating investments, markets, and stock exchanges on his own. It was 2003, and the world had just emerged from the dot-com bubble.

He underwent a rapid transformation into a trader who experienced the Global Financial Crisis of 2008 while working for a securities brokerage firm. He saw firsthand how devastating markets can be for individual portfolios. Watching a bear market unfold over several years, with negative news arriving day after day, is an experience that is difficult to convey to anyone who has not lived through it.

A move into risk management followed, along with a broader perspective on how different variables interact. Humility came gradually with the realization that there is rarely just one correct view or one correct solution. Context matters, and so do time and place. Each of these steps helped shape how Oldřich now views the world, and the financial world in particular

Overcomplicated things tend to break.

The portfolio lacked a long-term plan and alternative assets.

As is often the case, Oldřich managed portfolios of all sizes, from smaller portfolios for friends to institutional exposures worth billions of dollars. He managed risk and the impact of market fluctuations and developed long-term strategies to protect the wealth of others. Yet he somehow neglected to address his own portfolio with the same systematic approach.

Perhaps it was his age, or perhaps the birth of his children. In any case, Oldřich felt it was time to bring together everything he had learned and apply it to building a family portfolio designed to last for generations.

The decision was not very complicated. After experiencing how private banking works abroad and in the Czech Republic, he concluded that with his knowledge and the right like-minded partners, he could create greater value by taking responsibility for it himself. Above all, however, it is a commitment he has made to himself, and one that gives him a sense of purpose. Whether we like it or not, no two days in the financial world are quite the same.

So, what did Oldřich realize, in hindsight, had been missing from his investment portfolio?

• broader diversification beyond traditional financial instruments, across more regions and asset classes,
• a more systematic approach to real estate beyond a handful of individual properties,
• greater automation of the investment process, using either proprietary or external solutions,
• meaningful exposure to alternative assets, despite the portfolio already being large enough to warrant it,
• a long-term investment plan rather than ad hoc decision-making,
• a clear framework for complex family relationships around wealth, together with well-organized data and documentation.

The multi-family office concept was largely missing from the Czech Republic and, in 2020, remained scarce in both quantity and quality

Of course, there are several successful entrepreneurs or managers who have sold their companies and built their own family offices around their wealth and ongoing business activities. It is true that a few promising projects have also begun to emerge. On the other hand, there was, and to some extent still was in 2020, a lack of solutions for individuals with investable assets ranging between approximately USD 5 million and USD 240 million.

It is no wonder.

There are still relatively few highly experienced professionals in the Czech Republic with strong international backgrounds and decades of relevant experience. They have either been absorbed by individual family offices or are pursuing careers within financial institutions. Having the determination and courage to create your own solution to global standards is never easy. It is a long-term undertaking.

Finding the right chemistry with partners is difficult enough, as is maintaining an independent perspective on investments amid the constant flow of market news. Who will protect me from the constant stream of salespeople offering supposedly “guaranteed” products with exceptional returns? Why is someone explaining to me what happened in the markets yesterday? And perhaps worse, why are they telling me what will happen tomorrow?

Being a founding partner of a multi-family office means taking on a lifelong purpose and responsibility

What led to the founding of Family Office Partners?

• the right combination of timing and experience across the investment process,
• a determination to put things in order rather than leave unnecessary complexity for future generations and partners to resolve,
• the support of UHNWI families looking for the same kind of long-term partnership,
• bringing together professionals with shared or complementary expertise and goals,
• disillusionment with the services available to very wealthy families in the Czech Republic,
• the stories and experiences of inspiring people with valuable perspectives to share,
• the conviction that the people around us should be partners, not clients,
• the understanding that this is a lifelong commitment that can never simply be set aside.

Together with our partners in the multi-family office, we want to make larger, more compelling investments and pursue opportunities with greater impact.