Novum Partners brings order to complex asset structures and creates transparent solutions for ultra-high-net-worth families.
Novum Partners SA from Geneva, formerly known as Novum Capital Partners SA, transforms confusing asset landscapes into structured, understandable systems. The multi-family office focuses on simplifying complex structures without compromising their functionality.
Wealthy families often face a paradox: the more successful they become, the more complicated their asset structure becomes. Family office services help them find their way out of this labyrinth. Novum Partners SA specialises in analysing, simplifying and reorganising existing structures. This does not involve radical upheavals, but rather gradual optimisation that improves both tax efficiency and practical manageability.
Table of Contents
The anatomy of complex asset structures
Large fortunes rarely arise linearly. They grow over years and decades, often through various business successes, inheritances or strategic investments. With each building block, the structure becomes more complex. Suddenly, there are dozens of companies, trusts and holdings in different countries. What once made sense may no longer fit together today.
These mature structures have their own logic. One company in Switzerland for European investments, another in Singapore for Asian markets, trusts in various jurisdictions for tax optimisation. Each entity had its reason for being, but together they often form a complex web that is difficult to understand.
Typical drivers of complexity in family wealth are:
- Geographical distribution: companies and trusts in 5-10 different countries with different legal systems
- Historical stratification: structures from different decades that have never been consolidated
- Change of advisor: each new advisor has added their own solutions instead of optimising existing ones
- Business development: new investments require new structures without dissolving old ones
Novum Partners SA from Geneva encounters such situations on a regular basis. Families come to us for help because they no longer understand how their assets are structured. Different advisors have recommended different solutions over the years. The result: a structure that works, but which no one can fully comprehend.
The costs of complexity
Complexity costs more than just nerves. It creates administrative burdens, duplicate costs and regulatory risks. Every company needs administration, accounting and compliance. Every trust needs trustees and regular reporting. Different jurisdictions mean different tax and reporting obligations.
It becomes even more expensive when laws change. A new regulation in one country can suddenly affect the entire international structure. Families then spend months figuring out what the changes mean for them and how they should respond.
However, the greatest costs arise from missed opportunities. If a structure is too complex, decisions take too long. Markets do not wait for complicated coordination processes between different companies and trustees.
Systematically organising investment portfolios
A typical problem is fragmented investment portfolios. Assets are spread across different custody accounts, banks and asset classes without a clear plan behind them. Some positions overlap, while others create unwanted concentration risks.
Novum Partners begins with a complete inventory. Where are the assets located? Which investments are duplicated? Where do unnecessary costs arise due to overlaps? This analysis forms the basis for a structured reorganisation.
Consolidation takes place in stages. Similar positions are merged, and redundant structures are eliminated. The asset allocation strategy remains intact, but is implemented more clearly and efficiently. Instead of five small equity positions, one larger position is created, which enables better terms and lower costs.
It is important to strike a balance between simplification and functionality. Some seemingly redundant structures do serve a purpose – for example, for tax optimisation or legal protection. The trick is to recognise what is really necessary and what has simply developed over time.
Transparency through reporting systems
Uniform reporting systems are an essential component of clarity. Many families receive dozens of different reports from various banks and asset managers. Understanding and consolidating this is a full-time job.
Modern reporting solutions provide a remedy here. They aggregate data from different sources and present it in uniform formats. Families can see their entire asset situation at a glance – without having to struggle through different formats and calculation methods.
Such systems also enable better decisions. When all information is available in one place, connections can be identified that would otherwise remain hidden. Risk concentrations become visible and rebalancing requirements become apparent.
Credit consulting for structural optimisation
Financing structures often offer untapped potential for simplification. Over the years, many families have built up various credit lines with different banks. Coordinating and optimising these can lead to significant savings.
Credit consulting begins with an analysis of existing financing. Which loans are running under what terms? Where do collateral overlaps occur? Which covenants restrict flexibility? This inventory often reveals opportunities for optimisation.
Consolidating various credit lines can both save costs and simplify administration. Instead of negotiating with five different banks, a central financing structure is often sufficient. This usually offers better terms and greater flexibility.
Success factors for structural financing optimisation:
- Central coordination: One contact person instead of several bank contacts reduces effort and misunderstandings.
- Collateral pooling: Consolidated collateral enables better loan terms.
- Standardised documentation: Uniform contracts instead of individual agreements with each bank.
- Flexible structures: Adaptability to changing financing needs.
Coordinated financing creates synergies, especially in international structures. Cross-border financing can create tax advantages while reducing complexity.
Legal structure optimisation
Legal structures are often the most complex part of family assets. Different company forms in different countries, complicated ownership structures and nested holding constructions can confuse even experts.
Optimisation begins with understanding the original objectives. Why was a particular structure chosen? What objectives was it intended to achieve? Are these objectives still relevant today? It often turns out that the framework conditions have changed, and the structure can be adapted accordingly.
Modern approaches focus on simplicity wherever possible. Direct ownership structures are preferred over complicated interlocking structures. Instead of many small companies, a few larger ones are created that can be managed more efficiently.
Of course, tax and legal aspects must be taken into account. Not every simplification is possible or sensible. Professional support helps to find the right balance.
Integrate alternative investments in a structured manner
Alternative investments often bring additional complexity. Private equity funds, hedge funds and real estate investments have their own structures, terms and reporting requirements. Integrating these into an overall strategy is a particular challenge.
Integration begins with clear categories and objectives. What role should alternative investments play in the overall portfolio? How much complexity is justified for what expected added value? These questions help to distinguish between sensible and superfluous investments.
Structured approaches also create clarity here. Alternative investments are bundled into separate vehicles that are professionally managed. This reduces the operational complexity for the family without limiting investment opportunities.
Integration of specialised services
Wealthy families often have diverse assets that require specialised management. New Yacht Consultancy Services exemplify how such specialised areas can be professionally integrated into an overall structure.
The various asset classes have different cycles and requirements. Managing them within a coherent structure nevertheless requires specialised expertise and coordinated processes.
The path to a structured solution
Moving from complexity to clarity is a process, not a one-off event. It begins with an honest assessment of the current situation and a clear understanding of the objectives. What should the structure achieve? What complexity is necessary, and what can be avoided?
The restructuring is carried out step by step and in a well-thought-out manner. Radical changes often create more problems than they solve. A structured approach is better, implementing improvements step by step while maintaining the functionality of the existing structure.
Novum Partners SA, formerly known as Novum Capital Partners SA, accompanies families through this transformation process.
The goal is not to create the perfect structure – there is no such thing. The goal is to create a structure that is functional, understandable and adaptable.
Ultimately, creating clarity means giving families back control over their assets. When they understand what they own and how it is structured, they can once again make their own decisions. This is the most important step from complexity to clarity.
