To celebrate this incredible 20 year milestone for our National Gold Partner, EWM Group, our CEO Catherine Sayer sat down with Brad Scott, Managing Director and Founder of EWM Group to have a chat and reflect.
Together, they discussed the evolution of EWM Group, emerging trends in the family office space, the future of generational wealth transfer in Australia, their partnership with FBA and what lies ahead.
Catherine Sayer, FBA CEO:
Reflecting on the last 20 years, what do you see as some of your significant milestones, particularly in relation to family businesses and family enterprises?
Brad Scott, Managing Director and Founder, EWM Group:
20 years has been a bit of a journey. The first milestone, 20 years ago, was being the first independent multi-family office in the country. That’s been a really key part, and building a pretty strong brand and reputation over the time globally has been great.
The second is we saw a significant shift post GFC, that was a bit of a milestone around family governance and a real drive for families wanting family governance, family continuity, and those sorts of issues.
The third, is the FBA relationship. It has been instrumental for us. In 2017 that started and it really opened us up to a more broader national audience.
Catherine Sayer, FBA CEO:
We know that family businesses have their own unique challenges and strengths. What trends have you observed in the way they operate and evolved over the years?
Brad Scott, Managing Director and Founder, EWM Group:
One of the big trends has been around this whole family office space. It's been a bit of a journey, people understanding what that means. But one of the things that we have started to see with family businesses particularly, has been this appetite to build assets and wealth that's complementary to the family business, but separate to the family business.
The other trend, which has evolved, is around family charters and family constitutions. If you look at the recent Family Business Barometer Reports over the last few years, we've seen a gradual increase in the numbers of family charters and family constitutions. Which probably isn't telling the story, because I would have thought that those numbers would be higher. But what we have seen is a big shift in the awareness of people understanding what a good family governance system is.
Catherine Sayer, FBA CEO:
We are 7 years into our partnership with EWM Group and FBA, as you’ve said, it’s been a really important part of your journey. What value has this collaboration brought to the family businesses you work with?
Brad Scott, Managing Director and Founder, EWM Group:
Well firstly, the relationships and friendships that we've built through the FBA community - we've got to work with some amazing people, some great family businesses. I think we've been able to add a fair bit of value from the perspective of educating and preparing families for their roles around succession, transition, preparation, legacy, and their whole family office needs. But it goes more broadly than that too.
We’ve certainly seen through our network and community that’s quite separate to FBA, the mutual benefit to both groups. So the ability to introduce a few families, who have been operating in the family business space that haven’t had an association with FBA in the past, to Family Business Association so they finally realise that the challenges they’re facing, they are not alone, and there are lots of family businesses going through the same things.
Catherine Sayer, FBA CEO:
Looking ahead, what opportunities or challenges do you see on the horizon for family businesses, and how is EWM Group preparing to support them over the next decade?
Brad Scott, Managing Director and Founder, EWM Group:
It’s going to be a pretty significant decade ahead. What we do know, and this isn’t news to anyone, is we’ve begun a fairly substantial generational wealth transfer. $5 trillion that will have been transferred to the next generation.
Catherine Sayer, FBA CEO:
That’s a lot of money.
Brad Scott, Managing Director and Founder, EWM Group:
It’s huge!
And when you think about how that is going to happen, that’s where the real challenges begin.
It’s going from one generation to the next, but there is a process that it’s got to go through. Most of it is going to go spouse to spouse before it gets to the next generation. Some of the stats are that two thirds of the nation’s wealth is going to be controlled by women in a short period of time, and then you get seven generations who all have their own unique traits, wants, drivers, communication styles, so families really need to be prepared for that. That’s going to be a big piece that’s going to drive the next period.
That’s only telling part of the story. For families and their advisors, the awareness piece is the first bit. The second bit they need to be thinking about is what are the risks and the assessment from their own family’s perspective, so they can have a really clear action plan. They are going to be a lot of the drivers moving forward.
For us, we are going to keep doing what we’ve been doing for the last 20 years, it’s held us in pretty good stead. We have been doing it for 20 years, we have a national client base, we’ve now got people on the ground in Brisbane, Sydney and Adelaide. Fingers crossed we’ll have some great announcements for Melbourne and Perth shortly. Those areas are really going to drive and support some of those changes that we’re seeing.
Education is key. The Institute for Family Wealth, that’s our education business, that’s going to continue doing what it’s doing and working with families on the education side.
There is a bit on, there is a bit happening. We’ll keep doing what we have been doing for the last 20 years and look forward to doing it with FBA.
Catherine Sayer, FBA CEO:
Happy birthday to the EWM Group, 20 years, and as you say another big ten years to come.
Brad Scott, Managing Director and Founder, EWM Group:
Yeah, 20 years. It just seems like yesterday. It’s been great. I still can’t believe it’s gone by that quickly. The next ten years and beyond are pretty exciting.
From all of us at FBA and throughout the family business community, congratulations EWM Group on celebrating 20 years!
EWM Group was formed in 2005 and is Australia’s first independent multi-family office. Our clients are current or former family business owners, inheritors of wealth, single family offices, philanthropists, sporting and entertainment individuals, not-for-profit organisations and traditional owners. The extent of the firm’s services encompass: Family enterprise structuring, governance, & succession planning Investment and wealth management Corporate and business advisory Philanthropic advisory Compliance, reporting and administration Family member engagement and education.
