The head of a family office group owned by Fidelity Investments has stepped down, intensifying competition among money managers for access to the ultra-wealthy. Jennifer Richardson, who led the Forge Community since 2022, is now pursuing freelance opportunities as a coach for business executives and family offices.
Key Takeaways
Jennifer Richardson has left her position as head of the Forge Community, which serves over 1,700 family offices.
Fidelity Investments plans to announce a new leader for the group in the coming months.
The family office sector is becoming increasingly competitive, with major firms vying for the attention of wealthy investors.
Background on Forge Community
The Forge Community was established by Fidelity in 2011, initially inviting eight family office executives to collaborate. Over the years, it has evolved into a significant network for single-family offices, focusing on:
Confidentiality: Members are required to adhere to a strict code of conduct.
Networking: Opportunities for exchanging ideas and accessing industry research.
Events: Regular gatherings to foster collaboration among members.
The Competitive Landscape
As the family office sector grows, competition is heating up. Major financial institutions like Apollo Global Management and JPMorgan Chase are also targeting these affluent investors. A recent UBS survey highlighted that:
Each family office manages an average of $2.6 billion in private wealth.
Approximately 50% of their portfolios are invested in North America.
Future Directions for Fidelity
Fidelity spokesperson Anjelica DePhillis confirmed that the company is looking to appoint a new head for the Forge Community, who will also oversee Finteract, a similar initiative for financial advisory professionals. This strategic shift indicates Fidelity's commitment to maintaining its influence in the family office space.
Challenges Ahead
The Forge Community faces increasing competition from other organizations, such as:
SFO Alliance: A London-based group established in 2020, now boasting over 1,000 members worldwide.
Ex-Prop Trader’s $500 Billion Club: Another emerging network for family offices that is gaining traction.
Conclusion
Jennifer Richardson's departure marks a significant change for the Forge Community, which has played a pivotal role in connecting family offices over the past decade. As Fidelity seeks new leadership, the organization must navigate a rapidly evolving landscape filled with both opportunities and challenges.
Sources
Head of Fidelity-Owned Group of 1,700 Family Offices Departs, WealthManagement.com.