Novum Partners develops strategies for sustainable value preservation that ensure both financial stability and family continuity across several generations.
Geneva-based Novum Partners SA, formerly known as Novum Capital Partners SA, specialises in the complex task of cross-generational wealth preservation. This involves not only preserving financial assets, but also transferring responsibility and values between generations. Its family office services take into account both quantitative and qualitative aspects of long-term wealth planning.
Novum Partners Geneva takes a holistic approach to sustainable value preservation that goes far beyond traditional asset management. The company develops structures and strategies designed to successfully transfer both financial wealth and the associated values and traditions to future generations. This long-term perspective requires a careful balance between growth and security, between innovation and the tried and tested.
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When three generations sit around the table
Imagine this: grandfather, father, son. They all have different ideas about how to manage the family fortune. One swears by Swiss government bonds. The next wants to invest in tech start-ups. The third is thinking about cryptocurrencies.
Who is right? Probably all of them, to some extent. And none of them completely. Generational conflicts are normal, but particularly sensitive when it comes to wealth.
It’s not just a clash of opinions. It’s a collision of life experiences, risk appetites and visions of the future.
Novum Partners SA, formerly known as Novum Capital Partners SA, has learned from such situations. Not through harmonisation – that rarely works. But through structured opinion-forming. Every generation has its merits. Nevertheless, the overall portfolio must make sense.
In practical terms, this means different asset classes for different generations. A conservative foundation for grandparents. Growth investments for the middle generation. And a small experimental portion for the young.
Tradition versus innovation
‘We’ve always done it this way’ – familiar phrase? Dangerous in asset management. Markets change. What worked in the past can be harmful today.
Conversely, however, not every innovation is automatically better. Some traditions have proven their worth because they are robust. Diversification, for example. Or the importance of liquidity reserves.
The Geneva-based company navigates skilfully between these two poles. Proven principles remain. However, their implementation is continuously adapted. Diversification, yes – but today globally instead of just regionally. Liquidity, yes – but in different currencies.
Investment portfolios with a generational horizon
Twenty years is a short period of time for a stock market. For a human life, it is considerable. For family wealth? Practically the blink of an eye. One tends to think in terms of centuries.
This extreme long-term perspective changes everything. Volatility becomes irrelevant. Individual bad years are hardly significant. Other factors become important instead. Inflation, for example. Or structural changes in the economy.
Novum Partners develops portfolios for such time frames. Not optimised for the next year. But robust enough for the next decades. This often means less spectacular returns, but more consistent performance.
Sounds boring? It is. But it’s successful. Consistency beats spectacle. At least when it comes to family wealth. It’s not about maximum performance. It’s about continuity.
Inflation protection as a key challenge
Two percent inflation per year? That doesn’t sound like much. But over fifty years, it adds up to 169 percent. Assets must almost triple just to maintain purchasing power.
This creeping devaluation is often underestimated. But it is treacherous. It affects all generations, but only becomes visible in the long term. When it is too late for corrections.
Alternative investments can help here. Real estate, commodities, infrastructure – all asset classes that have historically coped well with inflation. Not perfect, but better than pure cash investments.
However, this requires longer commitment periods. Illiquidity is the price to pay for inflation protection. A fair deal for patient investors.
Family structures as a governance tool
Money alone does not make a successful family. Rules are also needed. Who decides what? How are conflicts resolved? What happens if someone wants to leave the system?
Such questions are often avoided. Understandable – who likes to talk about potential family crises? But that is exactly what is needed. Before conflict arises, not after.
Novum Partners Geneva supports families in establishing such structures. Not as family therapists, but as neutral advisors on organisational issues. What could a family meeting look like? Which decisions require unanimity?
These governance systems are individual. Every family is different. Some are very hierarchical. Others are more democratic. The only important thing is that it works. And that it is documented.
Asset allocation strategy for different stages of life
A 30-year-old thinks differently about risk than a 70-year-old. That makes sense. But what does that mean for the asset allocation of a family with members of different age groups?
Traditionally, a middle ground would be chosen. Everyone gets the same portfolio. Practical, but not ideal. Why should the younger generation forego growth opportunities? Why should the older generation take unnecessary risks?
Differentiated approaches are better. Different portfolios for different stages of life. Coordinated, but not identical. This requires more effort, but leads to better results.
In concrete terms, this could look like this: a high equity allocation for the young. A balanced mix for the middle. A conservative structure for the older. But all developed from an overall concept.
Credit consulting for generational transitions
Asset transfers are complex. From a tax perspective, certainly. But also emotionally. It’s not just assets that are being transferred. It’s also responsibility, traditions and sometimes expectations.
Credit consulting plays an important role here. Not only for financing, but also for structuring. How can a transfer be optimised for tax purposes? What forms of financing are possible?
Sometimes creative solutions are needed. The senior wants to transfer the company, but still derive some income from it. The successors do not yet have enough capital to pay the full purchase price. How can this be solved?
Through structured financing. Seller loans, earn-out clauses, staggered transfers. Anything is possible if you know the instruments. And understand the tax implications.
Liquidity management in transfer processes
Generational change often costs a lot of liquidity. Inheritance taxes, severance payments, restructuring. This can be a burden even on large estates.
Timely planning helps. Build up liquidity reserves before they are needed. Agree on financing lines. Identify alternative sources of liquidity.
The Geneva-based company often accompanies such processes over a period of years. Not only during the actual handover, but also in the preparatory phase, when there is still time for optimal structuring.
New Yacht Consultancy Services as lifestyle continuity
Luxury goods are more than just assets. They are part of a family’s identity. The boat on which three generations have spent their holidays. The art collection that has grown over decades.
Such emotional values are difficult to assess. But they are important for family continuity. Some things should not be sold, even if it makes economic sense.
Yacht consultancy takes these soft factors into account. A yacht is not just an investment. It is a family gathering place, a status symbol, and sometimes a retreat.
Nevertheless, the economic side should not be ignored. Emotions also have their price. This should be transparent, even if you are happy to pay it.
Important aspects of cross-generational yacht planning:
- Structuring ownership for multiple branches of the family
- Rules of use for different generations
- Cost allocation between the parties involved
- Exit strategies in the event of disagreements
Values beyond the financial
Ultimately, it’s not just about money. Families also pass on values. Traditions. Sometimes even obligations to society.
These intangible aspects are difficult to measure. But they are important for long-term success. A family held together only by money quickly falls apart. A family with shared values has a better chance.
Novum Partners SA, formerly known as Novum Capital Partners SA, understands these relationships. We advise not only on portfolios, but also on structures that promote cohesion.
These can be joint projects, family foundations for charitable purposes, or simply regular meetings where money is not discussed, but rather what really holds the family together.
Philanthropy as a bonding element
Joint charitable activities can strengthen families, give meaning beyond mere reproduction, and create positive attention instead of envy.
But here, too, structure is important. Who decides how funds are allocated? Which projects are supported? How are successes measured?
The Geneva-based company has experience with such structures. Not as a philanthropist, but as a consultant for the organisational aspects. So that good intentions also lead to good results.
