Novum Partners develops long-term wealth strategies that span multiple generations.
Novum Partners SA – formerly known as Novum Capital Partners SA – assists wealthy families in planning and transferring wealth across generations. The focus is on sustainable structures and taking different family dynamics into account.
Cross-generational wealth planning poses particular challenges for family office services. Each generation brings its own values, goals and ideas to the table. Over the past few years, Novum Partners from Geneva has gained experience in how these different expectations can be translated into coherent long-term strategies. It is not only financial aspects that play a role here, but also governance structures, communication between generations and preparation for asset transfers.
Table of Contents
Understanding generational change
Wealthy families today face a unique situation. Never before have such different generations with completely different world views collided. The post-war generation often built up their wealth through hard work and conservative investment strategies. Their children, the baby boomers, experienced economic growth and globalisation. Generation X grew up with the first technological upheavals. Millennials and Gen Z only know a digital, networked world.
These differences are clearly reflected in their investment preferences. While older generations often rely on proven asset classes, younger family members are interested in sustainable investments, impact investing or digital assets. Some talk about cryptocurrencies, while others have no interest in them.
The different generations each have their own typical characteristics:
- Baby boomers (born 1946-1964): Focus on stability and proven asset classes such as equities, bonds and real estate
- Generation X (born 1965-1980): First exposure to global markets and alternative investments
- Millennials (born 1981-1996): Interest in sustainable investments and technology-based solutions
- Generation Z (born 1997 onwards): Digital natives with an affinity for cryptocurrencies and impact investing
Novum Partners SA observes these dynamics on a daily basis. The Geneva-based company, formerly known as Novum Capital Partners SA, works with families spanning three or four generations. The challenge lies in finding common ground without overlooking the needs of individual generations.
Successful wealth planning therefore begins not with numbers, but with conversations. What are the family’s values? What role should wealth play for future generations? Should it primarily be preserved or actively grown? Such questions sound simple, but they often divide families.
Communication as the cornerstone
Cross-generational wealth planning stands and falls with communication. Many conflicts arise not from differences in content, but from misunderstandings or a lack of information. Older generations often worry that younger family members do not appreciate the wealth or are irresponsible with it. Younger generations, on the other hand, often feel overlooked or not taken seriously.
Professional support can help here. Moderated family meetings, structured discussions about wealth goals or joint educational events create understanding. It is less about compromise and more about genuinely understanding the different perspectives.
A practical example: a family discusses sustainable investments. The older generation is concerned about returns and security. The younger generation wants to take on ecological and social responsibility. The solution often lies in a step-by-step approach – part of the portfolio is reserved for sustainable investments, while the rest remains conservatively invested.
Structural solutions for complex family structures
Large fortunes bring with them complex structures. Investment portfolios are often spread across various companies, foundations or trusts. These structures must be designed to function across generations.
Governance plays a central role in this. Who makes which decisions? How are descendants prepared for their roles? What mechanisms are in place in the event of conflicts? Such questions must be considered at the structuring stage.
Novum Partners from Geneva assists families in developing family constitutions – written agreements on the family’s values, goals and processes. These documents create clarity and provide guidance for future generations.
Asset allocation strategy for long-term goals
A cross-generational asset allocation strategy differs fundamentally from short-term investment strategies. The planning horizon extends over decades, sometimes over a century. This brings with it special opportunities, but also challenges.
Long-term strategies are better able to withstand fluctuations. Those planning for 50 or 100 years need to worry less about short-term market volatility. At the same time, such strategies must be flexible enough to respond to fundamental changes.
Alternative investments play an important role in long-term portfolios. Private equity, infrastructure investments and forest ownership often perform better than traditional investments over long periods of time. They are less liquid, but offer protection against inflation and political risks.
The challenge lies in striking the right balance. Every generation also needs access to liquid funds. Family members have different needs – from financing education to entrepreneurial activities. Good asset allocation takes these different requirements into account.
Credit consulting for family structures
Financing strategies are becoming increasingly important in cross-generational planning. Credit consulting helps to structure assets in a tax-optimised manner while creating liquidity for various family needs.
A typical example: a family member wants to start a business or purchase a property. Instead of selling assets, a credit solution against existing assets may make more sense. This preserves the long-term asset structure while still creating the necessary liquidity.
However, such solutions require careful planning. Credit structures must fit in with the family’s overall goals and must not jeopardise long-term stability.
Practical challenges of asset transfer
Intergenerational asset transfers are complex processes. Tax aspects, legal structures and family dynamics must be coordinated. Many families underestimate the lead time required for successful transfers.
The most important factors for successful asset transfers include:
- Early planning: Transfer processes often require 5–10 years of lead time for optimal tax and legal structuring
- Family preparation: Successor generations must be gradually introduced to their roles and responsibilities
- Structural flexibility: Transfer structures should be adaptable to changing family or legal circumstances
- Professional support: Coordination between tax advisors, solicitors and asset managers is essential.
Novum Partners SA often accompanies families through these processes over years or decades. Experience shows that the best solution on paper will not work if the family is not behind it. Technical perfection must be reconciled with family acceptance.
Another aspect is next generation services – preparing the next generation for their roles. Inheriting wealth is a responsibility that many are not prepared for. Educational programmes, mentoring or a gradual introduction to decision-making can help.
Integration of different areas of life
Wealthy families often have diverse interests. In addition to traditional financial investments, they own art, real estate, yachts or aeroplanes. New Yacht Consultancy Services exemplify how different areas of wealth can be professionally managed.
Such assets present particular challenges. They require special expertise for purchase, sale and management. At the same time, they can play an important role in family cohesion – shared experiences create bonds between generations.
Integrating different asset classes into an overall strategy requires coordination. Each area has its own dynamics, legal requirements and tax implications. Professional support helps to maintain an overview.
Looking to the future
Cross-generational wealth planning will become increasingly important in the coming years. The largest transfer of wealth in history is imminent – the baby boomer generation will transfer their assets to subsequent generations.
These transfers will be more complex than previous generational changes. The assets are larger, more international and more diversified. At the same time, social expectations have changed. Sustainability, social responsibility and impact investing are playing a greater role.
Technological developments bring additional aspects into play. Digital assets, cryptocurrencies and tokenised investments create new opportunities, but also new risks. Families must grapple with issues that were unheard of just a few years ago.
Successfully supporting such processes requires more than technical expertise. It requires a deep understanding of family dynamics, cultural differences and generation-specific expectations. Companies, such as Novum Partners SA, specialise in these complex tasks and support families in shaping their long-term future.
The most important insight here is that successful generational planning does not begin with numbers and structures, but with people and their relationships with each other.
