Campden FB Issue 76

IDENTIFYING INTRAPRENEURS: WHO IS THE NEXT DISRUPTOR? Intrapreneurs are a different breed. In a large business around 5% of employees are natural innovators, according to ENTREPRENEUR COMMON INTRAPRENEUR DeSai Group chief executive Jatin Risk taken by TRAITS Risk taken by Desai. Of that, a mere 10% are great entrepreneur Leader company intrapreneurs who can build the next Raises own Visionary Financed by great business within the existing capital company enterprise. Their most important trait? Independent Influences others Dependent Intuitive Validates market Restorative demand Adaptive Arguably, it is their ability to innovate. approach Manages risk approach But innovation must be recognised as Game changer Value creator Starts from a permanent function of a successful Access to company, say experts familiar with scratch existing intrapreneurial patterns, just like Innovative structure other fundamental functions such as accounting, operations, and sales. Incubators that are isolated from other business areas tend to have limited success, because they are disconnected from the larger organisation. Game-changing innovations inevitably require a company-wide approach. members begin take notice. This, IMD’s Above: Jason up at universities and educational Vogel believes, reassures family leaders. Frohlich worked organisations worldwide that figure for his father may well rise. “If you work on something, a new Julius at LRDG business opportunity or an adjacent before launching Certainly, coaching elements of business that the next generation are Mentorum, a intrapreneurial programmes are a lure excited about, the senior generation digital platform for the next generation. In DeSerres’s might be more willing to act as mentors. that connects case his mentor was not his father, it [That is] because the next generation people with was the family firm’s chief financial are not going in and trying to change health and officer, who is now chief executive. their legacy by making all kinds of wellness modifications to the core business.” professionals “It was nice to see him from a different perspective from what I had Is intrapreneurship shifting the seen in the past.” roles of the next generation in the family-firm preservation stakes? Yet what struck DeSerres most was That’s unclear. What is certain is that relationship shifts between participants. traditional succession planning remains “The programme really forced a mentorship weak. Globally, 43% of families have relationship,” he says. no plan in place, according to PwC. “It was not just parent and child, it was the employee that I’m nurturing to carry forward In its 2016 family business survey, to try and understand that this is not a straight the management consultant describes line, that there are challenges. In our case the the next generation as ambitious, challenge was building another company with dynamic, and open to change. access to some of the main company’s resources.” Vogel agrees: “I think one of the big “They want the business they hand on to be challenges in family businesses’ succession is very different from the one they inherit.” that you need to break up this traditional parent-child relationship and turn that into an Which may explain why PwC found that adult-adult relationship. That will never work 47% of the next generation are looking to set 100% [of the time], but that is ultimately what up parallel ventures, alongside what the main we have to get to.” business is doing. With intrapreneurial programmes popping ISSUE 76 | 2019 CAMPDENFB.COM 49

FB ACADEMY BOOK REVIEWS Wealth of Wisdom: PREVIOUS REVIEWS The top 50 questions wealthy families ask RATED BY TOM MCCULLOUGH AND A Family Business KEITH WHITAKER on the Moon ✪✪✪✪✪ A novel concept, this new book is less a 400 page By Randel S Carlock tome than a collection of essays tackling 50 different and Keng-Fun Loh PUBLISHED BY questions that get asked by wealthy families. Where ›› ✪ ✪ ✪ ✪ ✪ Simon & Be Fearless (left) name-checks a roster of famous ›› Global Family Schuster families, this book goes one step further and gets PAGES a host of well-known advisers and thinkers to each Enterprise 240 author a chapter around nine major categories. Industry Advisors notables include Dirk Junge, John Davis and financial ›› 372 pages Be Fearless: figures Howard Marks and Christine Lagarde. It picks out key themes including changing demographics and Your Business– 5 Principles for a Life of Breakthroughs their impact on family dynamics and the shifting role Your Family– and Purpose of investments within the family structure as goals- Their Future: based investing comes to the fore. The book is intended By Emily Griffiths- BY JEAN CASE to be a practical, on-the-ground, how-to guide—its Hamilton easily digestible format makes this possible for families ›› ✪ ✪ ✪ ✪ ✪ If you like sharp, succinct anecdotes which wanting to ask the right questions. ›› Figure 1 pack a punch, then you are going to like Be Fearless. That’s because Jean Case has RATED PUBLISHED BY PAGES Publishing crammed in a great variety of real-world Wiley 400 ›› 173 pages stories to help illustrate five principles all ✪✪✪✪✪ based around betting big. Many of the stories Four Steps are notable because of who is sharing them, Transforming Legacy to Flow from Jeff Bezos to Warren Buffett, Jane Organizations: By Feisal Alibhai Goodall to Melinda Gates—whether they are ›› ✪ ✪ ✪ ✪ ✪ recommending the book, or personally referred Turn your established business ›› Qineticare to, Case is seriously well-connected. What’s this into an innovation champion to ›› 221 pages got to do with family businesses? Case is one of win the future the pioneers of the impact investing scene via READ ALL PREVIOUS The Case Foundation and is seriously focused on BY KRIS OSTERGAARD REVIEWS AT changemaking. This easy-to-digest manifesto is a great starting point for those families making Remember when unicorns were simply horned CAMPDENFB.COM bold steps and/or embarking on their own impact mythical creatures? Now the word also describes journey. It calls on readers to overcome fear, take disruptive startups valued at more than $1 billion, and bold risks, and live lives of urgency. it may feel to some principals like they are stampeding directly at their legacy family businesses. Ostergaard, who has been teaching established organisations around the world for more than 15 years, seeks to reassure. The innovation initiatives of legacies have far better chances of succeeding, he declares. Transforming Legacy Organizations gives real-world advice and research-based information on how to nurture innovation by employing new technologies, improving processes, and establishing a culture of creativity and forward momentum. Ostergaard explains how and why innovation needs to be embedded in corporate DNA and engage all employees as part of the innovation team. An engaging how-to guide in raising your family’s own stable of unicorns. RATED PUBLISHED BY PAGES Wiley 256 ✪✪✪✪✪ 50 CAMPDENFB.COM ISSUE 76 | 2019

Up close and personal with the trailblazers and latest trends in family business RESEARCH + RANKINGS 52 66 EUROPE’S FINEST AND THE AWARD GOES TO… Who did the public, peers and judges choose as the 30 finalists The inspiring winners of for the prestigious CampdenFB the six award categories European Families in Business are revealed—and what Awards 2019 in Milan? they said on stage PHOTOGRAPHY: GETTY IMAGES CAMPDENFB.COM 51

In association with: A SUSTAINABLE FUTURE Automation, disruption, and artificial intelligence are market trends shaking up the business models and heritage of family businesses at present. Yet there is one trend where many families have a giant head start: sustainability. Caring for their environment and employees has been at the heart of family enterprises for generations. Now many other organisations understand the long-term value of sustainability and are adapting their operations for positive impact. The European Families in Business Awards have been there every step of the way, celebrating innovators since the first Top Sustainable Family Business Award in 2012. Again this year, we had a golden opportunity to see great examples of family businesses adapting and leading in their respective industries. Their commitment to developing sustainable outcomes was one of the reasons CampdenFB was pleased to host this prestigious awards ceremony in association with BNP Paribas Wealth Management. The largest private bank in the Eurozone supports the growing appetite from families and entrepreneurs to generate positive impact through their businesses. The past seven years have seen us crisscross the continent from Amsterdam to Paris, Barcelona to Prague, and now Milan. So it was exciting to be back in Italy— the home of so many great family enterprises—after our 2015 visit to Rome. Selecting a winner from many worthy candidates in six categories each year is always a tough task for the judges. Candidates for Top Family Business this year included two local contenders, De Agostini and Epta; Danish medical manufacturer Coloplast; Spanish hoteliers Melia Hotels; and Swiss icon Victorinox. Our thanks must go to this year’s panel of judges who have given their valuable time to decide on a fascinating, and diverse, range of businesses from 11 different countries. So sit back, relax, and enjoy toasting Europe’s best-in-class family businesses! Nicholas Moody Editor, CampdenFB 54 Top 56 Top Family 58 Top Family Family Business Business Business Leader Rising Star 60 62 64 Top Next- Top Top Generation Non-Family Sustainable Entrepreneur Director Family Business 52 CAMPDENFB.COM ISSUE 76 | 2019

RESEARCH + RANKINGS JUDGES HARRI ALFREDO LYDIA ANDY NICHOLAS BROMAN DE MASSIS FORTE RUBIN MOODY Chief executive Full Professor of Group Director of Chairman Editor Broman Group Entrepreneurship & Food & Beverage Pentland Brands CampdenFB Joensuu, Finland Family Business, Rocco Forte Hotels London, UK London, UK Harri Broman became Co-director London, UK chief executive and Lancaster Andy Rubin has Nicholas Moody his younger brother, University’s Centre A third-generation been chairman of joined Campden Eero, vice president for Family Business hotelier, Lydia Pentland Brands Wealth in of Broman Group Lancaster, UK Forte is responsible since January 2013 as editor in 1995 then took Professor Alfredo for the concepts, 2015—a third- of its print full control of the De Massis holds management generation global publications and auto parts company the chair in and performance brand management is responsible when father-founder Entrepreneurship of the group’s company operating for editing Vaino relinquished and Family restaurants and in sport, outdoor, the quarterly the chair to Eero Business at bars.This includes and fashion. He publication – in 2013. Broman the Lancaster developing has worked at the CampdenFB, Group has received University new restaurant family business overseeing the several awards and Management concepts and for more than daily website recognition over School and is maintaining 25 years and in campdenfb.com, the years in Finland director of the thequality of food 2014 accepted and helming and Europe for its School’s Centre for and service in all CampdenFB’sTop their award successful operations. Family Business. the restaurant and Family Business events and The Finnish firm Previously, he was bar outlets within award. Pentland conferences. won CampdenFB’s at the University the hotels. In 2018 also won the Top Family Business of Bergamo she accepted IMD Global Award in 2013. (Italy) where CampdenFB’sTop Family Business he co-founded Family Business International Award the Center for Rising Star award. in 2017. Young and Family Enterprise (CYFE) that he ran as deputy director. METHODOLOGY In order to be considered for the The nomination process was open a long list was drawn up. This list was - 2 points were awarded for each awards, each family business must to our readers and the wider family then analysed for each category and a judge’s second choice be at least in its second generation business community for 10 weeks shortlist of five was created. of family involvement, and the family from 14 December 2018. The final vote for each category was - 1 point was awarded for each judge’s needs to control at least 25% of the Following the public nomination based on a points-scoring model third choice. voting rights in the business. Annual period, qualifying family business whereby: revenue has to exceed €100 million nominees were added to the personal - 3 points were awarded for each The winners are those family ($112 million) and the headquarters recommendations from the judges and businesses or individuals with the must be in Europe. judge’s first choice highest score in their category. ISSUE 76 | 2019 CAMPDENFB.COM 53

TOP FAMILY BUSINESS COLOPLAST DEAGOSTINI COLOPLAST DE AGOSTINI FA MILY: LOUIS-HANSEN FAMILIES: BOROLI AND DRAGO SECTOR: HEALTHCARE SECTORS: MEDIA AND FINANCE COUNTRY: DENMARK COUNTRY: ITALY Coloplast develops products and Founded in 1901 by cartographer services in what it calls “intimate Giovanni De Agostini, the healthcare”, including ostomy publishing house evolved under care, urology and continence the stewardship of the Boroli and care, and wound and skin care. Rossi families, expanded in the The company was founded in 1980s and rocketed under third- 1957 by Aage Louis-Hansen, generation chairman Marco Drago a civil engineer and plastics from 1997. De Agostini became a manufacturer, and his wife family-owned global conglomerate, Johanne, a nurse. Their first active in publishing (De Agostini product was a stoma bag that was Editore), media (Banijay Group based on an idea by fellow nurse and Grupo Planeta-De Agostini/ Elise Sorensen. Niels Peter Louis- Atresmedia), gaming and services Hansen, son and deputy chairman, (IGT), and finance (DeA Capital and owns the majority share of 20% Assicurazioni Generali). The group is in Coloplast and runs a charitable owned by B&D Holding, controlled foundation in his parents’ name, by more than 60 shareholding which has a sustainable 11% stake members across five generations in the firm. The innovative global of the Boroli and Drago families. De operator employs 12,000 staff and Agostini employs 14,000 people revenue grew by 6% to €2.2 billion worldwide and made €4.8 billion ($2.5 billion) in 2017-18. ($5.4 billion) in 2017. 54 CAMPDENFB.COM ISSUE 76 | 2019

RESEARCH + RANKINGS MELIA HOTELS INTERNATIONAL VICTORINOX EPTA EPTA MELIA HOTELS VICTORINOX INTERNATIONAL FAMI LY: N OC IVELLI FAMILY: ELSENER SECTOR: REFRIGERATION FAMILY: ESCARRER SECTOR: MANUFACTURING CO UNT RY: ITALY SECTOR: HOTELS COUNTRY: SWITZERLAND COUNTRY: SPAIN Epta is a multinational group, The Elsener family has made restructured in 2003, that Over 63 years, Melia has built the Original Swiss Army Knife specialises in commercial and a portfolio of more than 380 since pioneer Karl Elsener custom-made refrigeration for luxury hotels, hip boutiques, and founded his cutler’s business retailers. Late founder Luigi waterfront resorts in 40 countries in 1884. But grandson Carl Nocivelli set the values of “order, to become the third-largest Elsener Sr (1922-2013) and humility, delegation, resilience hotel group in Europe. Gabriel great-grandson Carl Elsener and the ability to let others lead”. Escarrer, vice chairman and chief Jr, chief executive since 2007, Son Marco Nocivelli is chairman executive, works with founding saved the business when and chief executive, and three father, Gabriel Escarrer Juliá, as sales plummeted after pocket directors on the nine-person non-executive chairman, and knives were banned by airlines board are female. The group their team to a code of ethics. after the September 11, 2001 acquired partner companies in They foster sustainable growth, terrorist attacks. The Elseners Poland, the Philippines, Chile reducing CO2 emissions and diversified into quality cutlery, and Peru in 2017 and continues energy costs, and build long- wrist watches, travel gear, R&D in energy innovation and term relationships. Seventeen and fragrances under their Industry 4.0. With more than 4,000 hotels were opened in 2019, globally recognised brand. With employees and operations in 35 with innovations including production of the 500-millionth countries to produce 200,000 Melia’s €130 million ($146 Swiss Army knife in 2017, 90% units a year, Epta’s revenues million) digitalisation and artificial of shares of the €504 million reached €888 million ($997 million) intelligence air conditioning, ($569 million) firm are held by in 2017, up 9% on 2016. generating a net profit of €140 the Victorinox Foundation. million in 2018, up 13% on 2017. ISSUE 76 | 2019 CAMPDENFB.COM 55

TOP FAMILY BUSINESS LEADER JEAN-FRANCOIS AND JEAN-CHARLES DECAUX ALBIERA, ALLEGRA AND ALESSIA ANTINORI ALBIERA, ALLEGRA AND JEAN-FRANCOIS AND ALESSIA ANTINORI JEAN-CHARLES DECAUX ROLES: PRESIDENT, VICE PRESIDENTS ROLES: CO-CHIEF EXECUTIVES, COMPANY: MARCHESI ANTINORI CO-CHAIRMEN CO UNTRY: ITALY COMPANY: JCDECAUX Eldest sister Albiera is president COUNTRY: FRANCE of Marchesi Antinori, middle sister Allegra heads retail and restaurants, Jean-Francois, 60, and Jean-Charles while youngest sister Alessia leads Decaux, 50, are the eldest of three the Antinori Art Project, making the sons of the late Jean-Claude Decaux trio the first female management who founded JCDecaux in 1964. team in the winemaking company’s The firm is the world’s number one 634-year history. After lifetimes outdoor advertiser, in more than in viticulture, the sisters manage 80 countries and employs 13,000 12,000ha of vineyards to produce staff. In 2000, the group became a more than 80 wines. Supporting the limited company, governed by the arts since the Italian Renaissance, hands-on executive board and a the family integrates tradition and supervisory board. The brothers are innovation with sustainability. co-chief executives and alternate This was exemplified by the as chairman of the executive board. opening in 2013 of Antinori nel Third-generation Alexia Decaux- Chianti Classico, their flagship Lefort, Jean-François’s daughter, €89 million ($100 million) state-of- joined its supervisory board in 2013. the-art winery, cellar, restaurant, Revenue in 2018 was up 3% to €3.6 auditorium, museum, book shop billion ($4 billion). JCDecaux Holding, and wine store in Bargino. wholly-owned by the family, pledged €20 million towards the rebuild of Notre-Dame Cathedral. 56 CAMPDENFB.COM ISSUE 76 | 2019

RESEARCH + RANKINGS TOMASO TRUSSARDI MARIA TERESA RODRIGUEZ SAINZ-ROZAS MARIE-LAURENCE GOURAUD, BENEDICTE MERCIER AND PATRICIA BROCHARD PATRICIA BROCHARD, MARIA TERESA TOMASO MARIE-LAURENCE GOURAUD RODRIGUEZ SAINZ-ROZAS TRUSSARDI AND BENEDICTE MERCIER ROLE: PRESIDENT ROLE: CHIEF EXECUTIVE ROLE: CO-PRESIDENTS COMPANY: GALLETAS GULLON COMPANY: TRUSSARDI COMPANY: SODEBO COUNTRY: SPAIN COUNTRY: ITALY COUNTRY: FRANCE Maria Teresa Rodriguez, president Tomaso Trussardi, third-generation Since they took over from their parents of Galletas Gullon, took control of chief executive of the 108-year- in 2000, the three sisters, née Bougro, the only family-run manufacturer old fashion house, will act as have mutually, independently and of biscuits and crackers in Spain chairman of the reinvigorated sustainably run Sodebo, the leader following the tragic death of her Trussardi Group after a deal with a in practical refrigerated ready-to-eat husband, third-generation Jose Milan-based investment firm. Early food. They doubled its revenue to €400 Manuel Gullon Gonzalez, in in 2019, QuattroR acquired a 70% million ($448 million) while focusing on 1983. Under her leadership, with stake in Trussardi for €50 million the well-being of their 2,000 employees. nutritional quality, food safety, ($57 million). The balance of 30% Patricia manages marketing, and innovation as investment stayed with Tomaso Trussardi, communication and human resources. cornerstones, sales at the who controls 86% of the holding Marie-Laurence handles production, 127-year-old firm have grown on group Finos, the sole shareholder. innovation, engineering, IT and logistics. average 10% in the last 15 years. In late 2018, the $170 million Benedicte controls quality, purchasing Its factories Gullon II and VIDA Trussardi Group ended its financial and production as well. Their plant on employ 1,400 staff and export to year with a net loss of €30.6 120ha in western Saint-Georges-de- 120 countries. Gullon turnover in million ($35 million). Tomaso’s Montaigu produces 400,000 pizzas a 2018 hit a record €360 million ($382 deal will boost the group’s capital, day, in addition to pasta, sandwiches million), up 5% on 2017. In June this brand positioning and visibility and salads. The sisters set up the first year, she announced her daughter, through relaunches in luxury Sodebo plant outside of France, in Lourdes Gullon Rodriguez, will product categories the name is Brazil’s Sao Paulo, in 2018. succeed her as president. known for. ISSUE 76 | 2019 CAMPDENFB.COM 57

TOP FAMILY BUSINESS RISING STAR ROBERT MAERSK UGGLA JEAN SEBASTIEN DECAUX SAMANTHA MANE 58 CAMPDENFB.COM JEAN-SEBASTIEN DECAUX SAMANTHA MANE ROLE: CHIEF EXECUTIVE, SOUTHERN ROLE: DIRECTOR, EMEA EUROPE, BELGIUM, LUXEMBOURG, REGION AFRICA AND ISRAEL COMPANY: MANE COMPANY: JCDECAUX COUNTRY: FRANCE COUNTRY: FRANCE Samantha Mane is part of As a third-generation member of €3.6 the fifth-generation working billion ($4 billion) revenue-making to take her family’s perfume French outdoor advertising company manufacturing group into the JCDecaux, Jean-Sebastien Decaux 21st century. With the company has served his family’s company focused on innovation and since 1998. Initially appointed as globalisation, it has become sales manager, he was responsible for one of the worldwide leaders successfully launching supermarket in fragrance, flavour and advertising in the UK. Throughout the ingredients, with operations in years, he has continued his meteoric 38 countries. Mane joined the rise through the ranks of the company group in 2008 and served as and has increased his responsibilities, deputy director for the Europe, heading 19 different companies. With Middle East, and Africa regions operations in more than 80 countries for five years. Since then, across five continents, Decaux now she has risen up through the serves as chief executive of JCDecaux’s company and was appointed subsidiaries including Southern group vice president and Europe, Belgium and Luxembourg director of EMEA, in charge as well as Africa and Israel. He joined of flavours, fragrances and the JCDecaux board in 2013. ingredients in the region in 2013. ISSUE 76 | 2019

RESEARCH + RANKINGS EMANUELE PREVE EVA RICHTERICH ROBERT MAERSK UGGLA EMANUELE PREVE EVA RICHTERICH ROLE: VICE CHAIRMAN ROLE: MANAGING DIRECTOR ROLE: CHIEF MARKETING COMPANY: MAERSK DRILLING COMPANY: RISO GALLO OFFICER COUNTRY: DENMARK I N T E R N AT I O N A L COMPANY: RICOLA Fourth-generation heir apparent COUN TRY: ITALY COUNTRY: SWITZERLAND to the AP Moller-Maersk empire, Robert Maersk Uggla has already A sixth-generation member of one Eva Richterich, the cousin shown himself to be a high-flier of the oldest Italian rice companies, of company chairman Felix within his family’s transport, Emanuele Preve spent his formative Richterich, was appointed logistics, and energy company. years gaining international chief marketing and innovation After graduating from Stockholm experience in investment officer of the Swiss herbal School of Economics, he spent management and management drops and teas manufacturer four years in charge of Svitzer, control outside the family business. at the beginning of the year—a Maersk’s towage and salvage Since joining the family business key position in the company. unit, before becoming chief in 2013, he has led initiatives to A fourth-generation member executive of the family’s AP look outside the traditional family of the family, she is a trained Moller Holding. Earlier this year, business and invested in the start- economist and previously he was appointed vice chairman up space, effectively diversifying founded Ricola’s independent of Maersk’s drilling rig subsidiary the family business into gluten-free innovation laboratory Ricolab, Maersk Drilling. Following in his pasta varieties and ready meal where she served as chief grandfather Maersk McKinney products as managing director executive, building start-ups Moller’s footsteps, Uggla set up of international operations at the for new businesses. At the a private investment vehicle to company’s Swiss headquarters. same time, she served as vice invest in companies and assets With one eye firmly on the future, he president of Ricola and has been outside the group in 2017. also joined a start-up bootcamp as tipped as a strong contender a mentor in order to get insight from to succeed Felix at the head and tap into innovation and talent. of the company in the future. ISSUE 76 | 2019 CAMPDENFB.COM 59

TOP NEXT-GENERATION ENTREPRENEUR KARAM HINDUJA NOORA KESKIEVARI JOUKO SALO KARAM HINDUJA NOORA KESKIEVARI ROLE: FOUNDER AND ROLE: CO-FOUNDER AND CHIEF EXECUTIVE CHIEF EXECUTIVE COMPANY: TIMELESS MEDIA/ COMPANY: ONEMIND DOGS TIMELESS CAPITAL COUNTRY: FINLAND COUNTRY: UK Noora Keskievari is the co-owner and a fourth-generation member As a member of the fourth-generation of celebrated Finnish bakery of India’s Hinduja family, Karam comes Leipomo Salonen. Away from her from a long line of entrepreneurs who family’s business, she founded have built successful and impactful innovative online dog training businesses. After graduating from company OneMind Dogs in 2012, Columbia University with a degree which specialises in training using in political science, Karam founded smart devices and has a distinctive Timeless—a leading family office method of training through the dog’s that invests in healthcare, FinTech, perspective. The company has raised and media. One of Timeless’ more than €500,000 ($561,000) principal brands is Karma Network, a in crowdfunding—surpassing its subscription-based intelligence hub target of €350,000 on the investor delivering insights and perspectives crowdfunding platform—for the to next-generation investors and launch of its global online puppy entrepreneurs. As the grandson of training programme. Since being noted entrepreneur Srichand P Hinduja, launched, it has gathered regular he also plays an active role in the followers each month from 130 family’s diversified global business, countries and has now expanded its serving on the boards of numerous operations to the US. companies across the Hinduja Group. 60 CAMPDENFB.COM ISSUE 76 | 2019

RESEARCH + RANKINGS SELIN YIGITBASI-DUCKER CAROLINE WALERUD JOUKO SALO CAROLINE WALERUD SELIN YIGITBASI-DUCKER ROLE: FOUNDER AND CHAIRMAN ROLE: CO-FOUNDER AND ROLE: FOUNDER AND DIRECTOR COMPANY: AEROMON EXECUTIVE CHAIRWOMAN COMPANY: GOODSTED COUNTRY: FINLAND COUNTRY: UK/TURKEY COMPANY: VOLUMENTAL Fourth-generation Jouko Salo is COUNTRY: SWEDEN A passionate social entrepreneur and president and chief executive of his marketing professional, Selin Yigitbasi- family’s holding company, Hollming. The daughter of prolific Ducker is a fourth-generation family While heading the shipping entrepreneurs and private investors, member of Turkish conglomerate Yasar dynasty, Jouko founded Aeromon, Jane and Bengt Walerud, Caroline Holdings. She is also the founder and a technology start-up focused on Walerud is a partner at her family’s director of the start-up Goodsted—a monitoring shipping emissions Walerud Ventures—a deep-tech digital platform for social entrepreneurs in harbours using drones. Since investment company, focused on to get support from their community. then, however, the company has early-stage green tech start-ups. A Professionals and students are able expanded to deal with a wider range graduate of Cambridge University, to find opportunities to volunteer their of issues, including conducting she co-founded Volumental, a skills, and share other resources with pilots at waste treatment plans and company which developed a cloud- impactful projects while contributing oil and gas industry sites. Now the based 3D scanning technology towards the UN Global Goals. Beyond innovative company has developed using depth cameras to customise her start-up, she also helps her family’s a unique platform for rapidly products and services, with three food business Pinar with marketing mapping more than 70 different computer vision experts. The for the UK market. After graduating industrial emissions, making it project has helped pave the way from University of Exeter, she worked easier for clients to manage the for the rise in bespoke shoes by in various marketing related roles in environmental effects of their taking advanced 3D foot scanning Brand Finance in London, Dentsu operations and protect members of technology to a successful in Singapore, and the Coca-Cola the public from potential hazards. commercial product. First serving Company in Istanbul. as chief executive until 2016, she is now executive chairwoman. ISSUE 76 | 2019 CAMPDENFB.COM 61

TOP NON-FAMILY DIRECTOR PETER HARF MARK PRESTON MICHELE NORSA PETER HARF MICHELE NORSA ROLE: MANAGING PARTNER ROLE: VICE CHAIRMAN AND AND CHAIRMAN BOARD MEMBER COMPANY: JAB HOLDING COMPANY: MULTIPLE COUNTRY: GERMANY COUNTRY: ITALY Peter Harf has been one of the An Italian family business veteran, architects of JAB’s ambitious Michele Norsa has more than deal-making spree over the 40 years’ experience in senior past five years that has seen roles at a number of corporates, the German holding company including Salvatore Ferragamo, spend €44.2 billion ($50 billion) Valentino Fashion Group, and acquiring diverse businesses from Marzotto. He is a board member Pret a Manger, and Dr Pepper, of Oettinger Davidoff, Rocco to Krispy Kreme. A long-time Forte Hotels, and fashion house employee of the Reimann family- Ermenegildo Zegna, which controlled business, earlier this follows more than a decade year he fronted a public apology as chief executive of Salvatore when it was revealed that female Ferragamo. He is vice chairman slaves captured from Eastern of two well-known fashion groups Europe were abused at Reimann owned by families, Missoni and premises in Ludwigshafen, south Biagiotti. He is also strategic of Frankfurt, during the Second adviser of Ferragamo Finanziaria World War. The public apology SpA, the holding company of showed how much faith the the Ferragamo Group which famously-reclusive Reimann has a governance role for the family place in the 72-year-old. Ferragamo family. 62 CAMPDENFB.COM ISSUE 76 | 2019

RESEARCH + RANKINGS JONAS SAMUELSON ANDREAS RONKEN MARK PRESTON ANDREAS RONKEN JONAS SAMUELSON ROLE: EXECUTIVE TRUSTEE ROLE: CHIEF EXECUTIVE ROLE: PRESIDENT AND COMPANY: GROSVENOR ESTATE COMPANY: RITTER SPORT CHIEF EXECUTIVE COUNTRY: UK COUNTRY: GERMANY COMPANY: ELECTROLUX Mark Preston is the Under Andreas Ronken’s COUNTRY: SWEDEN executive trustee of the leadership, Ritter Sport Grosvenor Estate with declared in 2018 it is the first Jonas Samuelson serves as the overall responsibility for the bar manufacturer among president and chief executive of Grosvenor family’s business major chocolate brands to Electrolux. Under his stewardship, interests. He also holds the use 100% certified cocoa the Wallenberg-controlled appliance position of chief executive of and has achieved its goal giant is setting a benchmark Grosvenor Group to which he ahead of previous target on sustainability with its launch was appointed in 2008 after years of 2025 then 2020. of green bonds and ambitious a long career with Britain’s Revenue edged upwards to renewable targets on track for wealthiest land-owning family. €489 million ($548 million) 2020. The world’s fifth-largest Its best-known assets include in 2018. Ritter harvested in consumer goods manufacturer some of London’s most 2017 its first cocoa crop at issued the first bond loan within exclusive properties in Mayfair, Finca El Cacao, the 2,500ha its green bond framework, raising Belgravia and part of Oxford cocoa plantation it owns SEK1 billion ($108.4 million) to fund St, which it has managed and operates in South East investments and other projects since 1677. Pre-tax profits Nicaragua, after six years of with environmental benefits. The dropped in 2018 to £197 development and investment. company also increased R&D million ($248 million) however, By 2025, it aims to produce spending during 2018 to almost the value of the property about 25% of the cocoa SEK4 billion ($422 million), of empire rose to £7 billion. liquor it needs at El Cacao. which one third was used for sustainability-related product development. ISSUE 76 | 2019 CAMPDENFB.COM 63

TOP SUSTAINABLE FAMILY BUSINESS ELECTROLUX FRESCOBALDI ELECTROLUX FRESCOBALDI FAMILY: WALLENBERG FAMILY: FRESCOBALD I SECTOR: MANUFACTURING SECTOR: WINE COUNTRY: SWEDEN COUNTRY: ITALY White goods manufacturer The Frescobaldi family has been Electrolux is on track for its producing Tuscan wine for more 2020 goal to have a 50% share than 700 years, yet it is not of renewable energy in all of resting on its laurels, undertaking its operations. It comes after many cutting-edge 21st century announcing in early 2019 that eco-sustainable ventures. it had made a 66% reduction Its innovations range from in CO2 emissions from its AgriQualita certification for the operations since 2005. Other key use of ecologically sustainable initiatives and achievements from farming techniques to the use of 2018 include: approved science- lighter-weight bottles that have based climate targets in line with cut CO2 production. Photovoltaic the Paris climate agreement, systems provide renewable the Zero Landfill programme energy to its estates leading to implementation, and the social an average annual CO2 decrease investment strategy to scale up of 226 tonnes. Meanwhile, its the Electrolux Food Foundation. prison island social project, During 2018, Electrolux invested Gorgona, sees Frescobaldi SEK5.6 billion ($590 million) in agronomists and oenologists projects including automation working with prisoners in an and digitalisation to improve open-air island prison to offer the company’s sustainability them skills in wine-growing and performance. help produce their own wine. 64 CAMPDENFB.COM ISSUE 76 | 2019

RESEARCH + RANKINGS SIPEF GROUP HENKEL POLARBRÖD HENKEL SIPEF GROUP POLARBRÖD FAMI LY: HENKEL FAMILY: BRACHT FAMILY: NILSSON SECTOR: CHEMICAL AND SECTOR: CONSUMER GOODS SECTOR: FOOD COUNTRY: BELGIUM COUNTRY: SWEDEN CONSUMER GOODS COUNTRY: GERMANY The group focuses entirely on agro- Polarbröd is a fifth-generation industrial activities and produces breadmaker that is strongly Henkel has a history of palm products, such as bunches focused on sustainability and sustainability dating back of palm fruits, palm oil, palm has built four wind turbines to into the 1950s, yet its latest kernels, palm kernel oil, as well as generate its power. In 2012 it effort is an ambitious “Factor natural rubber, tea, and bananas. set itself the ambitious goal of 3” sustainability goal that Headquartered in Belgium, the being a socially, economically, started in 2012. The initiative subsidiaries in Indonesia, Papua and environmentally sustainable aims to triple the value it New Guinea and the Ivory Coast business by 2022. The creates from its operations, employ more than 21,000 people. targets are: 100% sustainable products and services by Most live within SIPEF operations ingredients, 100% fossil-free 2030. To reach its goal of and housing, clean water, transports, packaging that is becoming three times more medical services and education 100% recyclable and/or fossil- efficient by 2030, it has had for children are provided. The free, and self-sufficiency in to improve its efficiency by an group attaches great importance renewable energy. Today, more average of 5% to 6% each to sustainable agriculture, than 90% of its plastic bags are year. It reached its targets having established the SIPEF made from by-products from from 2011 to 2015 when it Responsible Plantations Policy sugar cane production. The improved the relationship in 2014 and sells the majority of new bags are 100% recyclable between the value it creates its products through sustainable and 86% of the material used and its environmental physical supply chains. In 2018 to make them is renewable, footprint by 38% overall. By the group achieved a turnover which reduces their carbon 2018 there was an efficiency of €245 million ($275 million). dioxide emissions. increase of 43%. ISSUE 76 | 2019 CAMPDENFB.COM 65

HENKEL, MELIA,TRUSSARDI, NEXT GENS AND SUSTAINABILITY AWARDED FOR EXCELLENCE BY CAMPDENFB GROUP PHOTO: AWARD WINNERS JOIN HOSTS CAMPDENFB AND BNP PARIBAS WEALTH MANAGEMENT ON STAGE AT THE CAMPDENFB EUROPEAN FAMILIES IN BUSINESS AWARDS 2019, IN THE FOUR SEASONS HOTEL, MILAN, ON 2 JULY. ON STAGE (FROM LEFT) REMI FRANK (BNP PARIBAS WEALTH MANAGEMENT), KONSTANTIN VON UNGER (HENKEL), TOMASO TRUSSARDI (TRUSSARDI), SELIN YIGITBASI-DUCKER (GOODSTED), MICHELE NORSA (MULTIPLE BUSINESSES), SOFIA MERLO (BNP PARIBAS WEALTH MANAGEMENT), AND JAMES BEECH (CAMPDENFB). Europe’s leading business families while reducing our environmental increase individuals’ mental wellbeing.” were hailed for their sustainability footprint at the same time,” he said. Tomaso Trussardi, third-generation and stewardship by their peers at the glittering European Families in Business The Top Family Business Rising Star chief executive of his family’s Awards 2019. Award was presented to Emanuele 108-year-old fashion house was Preve from Italy’s Riso Gallo. The sixth- on hand to accept the Top Family Henkel, the €19.9 billion ($22.4 billion) generation member has led initiatives Business Leader of the Year Award. German chemical and consumer goods to look outside the traditional family Trussardi’s award comes in part due giant, won the highly prized honour— business and invest in the start-up to his role in sealing a €50 million deal Top Sustainable Family Business space, diversifying the family business with a Milan-based investment firm to of the Year—at the gala dinner and into gluten-free pasta varieties and capitalise the business. awards. The ceremony was hosted in ready meal products. partnership with BNP Paribas Wealth The Top Non-Family Director Award Management at the Four Seasons Selin Yigitbasi-Ducker received the was collected by Italian family business Hotel, Milan on 2 July. Top Next-Generation Entrepreneur veteran Michele Norsa. He has more Award in a closely-run category than 40 years’ experience in senior Henkel’s ambitious “Factor 3” where a mere point separated the top roles at a number of Italian corporates, sustainability goal started in 2012 and contenders. Yigitbasi-Ducker, of the UK including Salvatore Ferragamo, aims to triple the value it creates from and Turkey, is the founder and director Valentino Fashion Group, and Marzotto. its operations, products and services of early-stage start-up Goodsted. It follows more than a decade as chief by 2030. Already by 2018 there was an executive of Salvatore Ferragamo. efficiency increase of 43%. “Our digital platform creates a more engaging, accountable and measurable Melia Hotels International won the Konstantin von Unger, a fifth- way for sharing skills and other Top Family Business Award for its generation member of Henkel’s resources needed to address the variety performance in 2019 that saw the Shareholder Committee, accepted the of challenges encountered by social third largest hotel group in Europe top award on behalf of his family. entrepreneurs,” she said. open 17 hotels, with innovations including a €130 million ($146 million) “We want to create more value for our “As a result, we also aim to digitalisation project and artificial customers, employers, neighbours and strengthen communities, create shareholders, and also the company, opportunities for skill development, and intelligence air conditioning. 66 CAMPDENFB.COM PHOTOGRAPHY: ANTONIO SANSICA

Find out where the smart money is going CAPITAL HUB 68 69 70 CYPRUS MONTENEGRO GREECE FIND OUT HOW TO INVEST WHY THIS MEDITERRANEAN WHAT THE SPECIAL THROUGH AN ALTERNATIVE REGISTER MEANS FOR COUNTRY IS A NEW INVESTORS AND ULTIMATE INVESTMENT FUND REGIONAL HUB BENEFICIAL OWNERS CAMPDENFB.COM 67

CAPITAL HUB CYPRUS INVESTING INTO THE BALKANS investment instrument. AIFs are THROUGH A CYPRUS known and used all over the world ALTERNATIVE INVESTMENT FUND and permit the private units’ As a collection of emerging placement among participants, markets with a strong rates from 9% to 20%), certain with the consideration of securities growth potential, industry sectors provide additional legislation of respective jurisdictions. the Balkan countries incentives to investors. Tourism and have firmly positioned energy are of particular interest Cyprus AIFs are domestic funds themselves on the map of in Albania and Montenegro, recognised abroad, whose units of attractive investment locations. natural resources exploration and participation can be disposed of exploitation in Serbia, agriculture in by means of private placement to Steadily growing numbers of Bosnia, IT in Croatia and Kosovo, investors and used for investing into foreign investors have expanded into and clothing and automotive other countries, including countries in Albania, Bosnia and Herzegovina, components in North Macedonia. the Balkans, subject to the compliance Croatia, Kosovo, North Macedonia, Most of the Balkan countries also with securities` legislation of respective Montenegro and Serbia, drawn have a network of Free Zones, where jurisdictions. Investment can be primarily by the region’s favourable further tax incentives, exemptions performed in the form of equity location, its affordable workforce and deferrals apply. investments, non-listed securities, and creative tax regimes. shares in the charter capital, etc. One of the approaches to Real estate in these countries investments into the Balkans AIFs are regulated and licensed by attracts significant investment as from Cyprus is the investment via the Cyprus Securities and Exchange Commission (CYSEC). AIFs can be well, mainly due to population Cyprus Alternative Investment set up as umbrella funds, operating growth and increase of purchasing Funds. AIFs are governed by more with various investment types, power, which creates substantial flexible regulations as compared policies, etc, and with the creation of opportunities in real estate. to other organisational forms of independent sub-funds. entities and use a wider range of With tax systems that offer a strategies as compared to traditional According to AIF Law, there are plethora of advantages to foreign funds, making them an attractive no specific requirements for the investors (corporate income tax unitholders and investors of AIF, other than the requirement of the unitholders and investors undergoing an extensive “know your customer” procedure and, if the latter is a legal entity, then all relevant information and documents should be provided until a natural person—ultimate beneficial owner is identified, as well as sufficient information as to the origin of the assets. Continuous alignment of legislation to EU norms is being made, with more work still ahead. And while the region is facing certain challenges— particularly in terms of political instability, bilateral cooperation and infrastructure networks—the common vision of EU membership keeps the Balkan countries firmly on the path of perpetual growth. For more information, contact: Anna Philiotis, Eurofast Cyprus, [email protected] 68 CAMPDENFB.COM Content provided by Eurofast - Please find the Eurofast disclaimer at eurofast.eu/disclaimer ISSUE 76 | 2019

MONTENEGRO the highest in the region. Moreover, the start-up procedures for businesses are simple and fast. It takes no longer than 10 working days to establish a company and open a bank account. Current tax policies are structured to allow IT businesses to enjoy a number of benefits, including: • VAT on foreign transactions is 0% • Corporate income tax is 9% • Personal income tax is 9% • There is no obligation for an executive director to spend a certain number of days in Montenegro, which allows for smooth location- independent business operations • With a residency permit, investors can become tax residents of Montenegro and pay taxes on their worldwide income per Montenegrin rates • Affordable cost of living MONTENEGRO— WHAT NEEDS TO BE IMPROVED? A NEW REGIONAL HUB? T his small Mediterranean • Full integration of PayPal and country—known as the nomads’ lifestyle has caused the additional payment processing perfect blend of gorgeous proliferation of flexible, location- systems must be completed coastline and dramatic independent companies. Tax mountains—has much more legislations and European regulations • There is a lack of legal, tax and to offer than meets the eye. are adapting slower than business accounting advisers specialised in In terms of the business climate, development in this sector. For some digital/IT business and transactions significant progress has been made countries, this transition has already in the last couple of years towards brought opportunities which have • L ack of proper co-working spaces streamlining business start-up been welcomed (for example Estonia) and culture procedures. Many investors have but for others, this can be a crucial entered the market which has resulted moment for further development. The potential of Montenegro in this in a remarkable rise of foreign direct sector is still unused and unexplored. investment. But, is there perhaps WHY MONTENEGRO? Although there is a growing expat and a development opportunity which IT community, common initiatives are might have been overseen? Does Research conducted among expats and required to improve the infrastructure. Montenegro have the potential to freelancers shows that they consider This development will contribute become a regional IT hub? Montenegro a paradise country. Easy directly to creating a better future to navigate, they can move from the and exploring the entire potential of IT businesses are running the world coast to the north and enjoy a wide Montenegro becoming a hub base. nowadays. The lure of the digital range of scenery. Living costs are affordable and the quality of life is It’s high time to explore all the opportunities Montenegro has to offer. Get in touch with us to discuss your ideas and get specific advice on how Montenegro can become your IT hub. For more information, contact: Bojana Minic, Investment and Immigration Consultant, Eurofast Global—Montenegro, T +382 20 228 490, [email protected] ISSUE 76 | 2019 Content provided by Eurofast - Please find the Eurofast disclaimer at eurofast.eu/disclaimer CAMPDENFB.COM 69

CAPITAL HUB GREECE OBLIGATION TO DECLARE UBOS TO GREEK MINISTRY OF FINANCE’S CENTRAL REGISTER For the first time this year, legal persons and other entities are person on whose behalf a transaction there are grounds for suspicion as obliged to declare their Ultimate or activity is being conducted. to the identified beneficial owner, Beneficial Owners (UBO) to the the natural person(s) who holds the Central Register of the Ministry Specifically, in the case of corporate position of senior managing director(s) entities, the beneficial owner could be: will be considered as the UBO. a) the natural person(s) who ultimately of Finance (MFA). owns or controls a corporate entity In accordance with the Greek Anti through direct or indirect ownership SPECIAL REGISTER AND CENTRAL Money Laundering Law 4557/2018— or control of a sufficient percentage REGISTER OF BENEFICIAL OWNERS which implemented the EU Directive of the shares or voting rights or other 2015/849/EU—specifically Article proprietary rights, among others, This Special Register must be held, 20, corporate and other entities through bearer shares or through adequately justified and updated with a registered seat in Greece are control by other means. under the liability of the legal obligated to collect and maintain A shareholding or an ownership of a representative or the specifically (in a Special Register maintained proprietary right interest of more than authorised person by a resolution of at their seat) adequate, accurate 25% in a corporate entity held by a the competent body of the obliged and current information on their natural person shall be an indication legal person or entity. The details beneficial ownership and register of direct control. A shareholding of the beneficial owner must then this information with the relevant or an ownership of a proprietary be disclosed and registered with electronic platform (taxisnet) of the right interest of more than 25% in a the Central Register of Beneficial General Secretarial of Information corporate entity held by another legal Owners within 60 days of the Systems of the Ministry of Finance. entity, which is controlled by a natural commencement of its operation, by person(s) or by more companies using entry codes for the electronic WHO IS CONSIDERED A “BENEFICIAL controlled by the same natural platform (taxisnet) of the General OWNER” (ARTICLE 3, POINT 17, L. person(s) shall be an indication of an Secretarial of Information Systems of 4557/201 8)? indirect control. the Ministry of Finance. b) if, and only if, after having A beneficial owner is considered to be exhausted all possible means and the natural person(s) who ultimately there are no grounds for suspicion, For more information, contact: owns or controls a legal person or the beneficial owner is not identified Maria Sarantopoulou, Tax and Legal Adviser legal entity, as well as the natural as under a) above, or provided that at Eurofast T: +30 210 8257720, [email protected] 70 CAMPDENFB.COM Content provided by Eurofast - Please find Eurofast disclaimer at eurofast.eu/disclaimer ISSUE 76 | 2019

Building tomorrow’s success on today’s innovation LEADING EDGE 72 BLOCK PARTY? Blockchain and cryptocurrencies have been generating lots of buzz, but how are families using the technology to improve their performance in the real world CAMPDENFB.COM 71

BLOCKCHAIN REACTION Adecade-old, blockchain technology is facing an inflection point. A few years ago it was easy to find people who were evangelically enthusiastic about it. A 2015 World Economic Forum survey of more than 800 executives and experts from the information and communications technology sector found the majority believed that by 2027, 10% of global GDP would be stored on blockchain technology. In 2017, venture capitalists invested more than $1 billion in blockchain-based ideas. IBM has invested more than $200 million in a blockchain-powered data-sharing service for the Internet of Things. In his 2016 book Blockchain Revolution, subtitled “How the technology behind bitcoin is changing money, business and the world”, the renowned technology writer Don Tapscott called blockchain “a new platform to reshape the world of business and transform the old order of human affairs for the better.” Al Gore mused that it might replace many of the functions of government. Facebook announced in June 2019 it will launch its own blockchain-based digital currency, Libra, in 2020. The media giant hopes it will speed payments between its 2.4 billion users. One area where it thinks uptake could be significant is in streamlining the notoriously clunky and expensive area of remittances. It also hopes that it might help the world’s 1.7 billion unbanked people make payments. A consortium of 27 partners, including firms that run digital wallets, Above: Don Tapscott, Canadian business music-sharing site executive, author and consultant, has Spotify, taxi app Lyft, compared the sea change economic and Visa, are involved. possibilities of blockchain today to the internet in 1995. 72 CAMPDENFB.COM ISSUE 76 | 2019

LEADING EDGE Facebook’s Libra launch shows blockchain has entered the mainstream. Jeremy Hazlehurst looks at what the technology really means for family businesses But now worries about the technology, and especially the cryptocurrencies it underpins, are widespread. Nouriel Roubini—the economist famous as the man who predicted the financial crisis of 2008—has called it “the most overhyped— and least useful—technology in human history” and damned it as “a glorified spreadsheet”. LET THE BUYER BEWARE hacking, volatility, and general Wild West feel that There are lots of reasons to be wary about blockchain. Because can be associated with bitcoin and its peers. they are anonymous and untraceable, blockchain-based cryptocurrencies are the choice of people who want to traffic Jean-Edouard Dias, a lecturer specialising in slaves or poached rhino horns on the dark web. An academic blockchain at HEC business school in Paris, says paper in April 2019 found cryptocurrency exchanges are that businesses are “using blockchain as a way to crawling with arbitrage bots, gaming the system to make money trace and certify the origin of the components of from other people’s transactions. Also, some exchanges could be a product or a service, in order to fight against reporting activity 10 times higher than the truth, to make their counterfeiting, identity theft or the usurpation of products look more popular than they are, says research by rights. [It is used] to ensure that the contribution cryptocurrency analytics firm Tie. of each component in the product/service value chain is rewarded at the level it deserves, in And because it attracts chancers and others who want to get order to avoid looting of natural resources at the rich quick, some of the stories the technology has spawned expense of deprived countries or individuals.” sound like rejected storylines from the dark satirical television show Black Mirror. For example, in 2019, Iceland reportedly In other words, they are using it on supply- used more power mining cryptocurrencies than heating its chains. Arguably the largest-scale example of this homes. Then there is the modern morality tale of blockchain- is a blockchain-based system called TradeLens, based cryptocurrency QuadrigaCX, whose founder died, taking created by family-owned shipping giant Maersk. It with him the passwords needed to unlock $150 million of aims to streamline and modernise the sometimes- currency belonging to 92,000 people. unwieldly world of international shipping, which even now can involve physical pieces of paper GETTING DOWN TO BUSINESS being rubber-stamped by staff in dockside offices. All reasons to be cautious. But the only important question is: what can blockchain really do for businesses? The first step to TradeLens allows participants in the complex answering this question is to separate blockchain from its best- shipping chain, including other shipping lines, known application, cryptocurrencies. Public blockchains open freight-forwarders, and logistic companies, to to everyone underpin bitcoin, ethereum, and other currencies, share records of transactions. More than 100 and these might be useful to businesses which are looking to organisations have joined, and the system will circumvent awkward payment systems. But many of the real- world applications that solve business problems use custom- built, private blockchains and are therefore insulated from the PHOTOGRAPHY: ISTOCK

Above: The Danish family-controlled shipping giant Maersk is behind TradeLens, billed as an open and neutral industry platform underpinned by blockchain technology. record almost half of all global trade, involving efficiency by cutting out unnecessary middlemen. more than 10 million events a week. A rival Blockchain can also be useful in sectors with high-value system, Global Shipping Business Network, which is also built on a blockchain, is being used by products which are prone to forgery. In May 2019, LVMH, other firms including Hutchison Ports, owned by controlled by the French Arnault family, announced it will Asia’s richest man, Li Ka-Shing. use a blockchain-based product called Aura to track and ensure the authenticity of Louis Vuitton and Parfums Another game-changing example is being Christian Dior products. Rival luxury holding company developed by Walmart, the American retail giant owned by the Walton family. In Richemont, which is controlled by the Rupert family and reaction to a food-contamination owns brands such as Cartier, Dunhill and Mont Blanc, scandal in the US it is developing a and the Pinault family’s Kering, whose stable includes blockchain-based system which Gucci and Balenciaga, are both working with a non- tracks leafy vegetables from field profit called Arianee, to create a similar system to shelf. By September 2019, all on the blockchain. growers who supply Walmart will The other major area where blockchain have to register their products might be expected to make breakthroughs is on the new system. In a trial, “automating a payment once conditions are French retailer Carrefour and duly fulfilled, easing compensation,” says Swiss food-maker Nestlé are HEC’s Jean-Edouard Dias. A great example of also using blockchain systems this is a product called Fizzy, from insurance to allow consumers to trace the giant AXA. Fizzy creates a smart contract on provenance of the potatoes in its the ethereum currency blockchain—ethereum’s Mousline mashed-potato product. unique feature is that, unlike bitcoin, it allows In Asia, Royal Golden Eagle, a manufacturing smart contracts. Fizzy monitors global flight databases and conglomerate run by the second generation of the once it sees that a plane has been delayed by two hours it Tanoto family, is moving its palm-oil business triggers an automatic payment straight into the bank account onto the blockchain, which will cover half of of anyone who has bought its insurance. the world’s production of the product. The aim is to increase transparency, so that everyone One of blockchain’s promises was that, by using a new kind involved in the production process can be certain of currency, it would disintermediate legacy payment systems, of the product’s provenance, but also to increase owned by banks and other financial players, who made transferring money slow while skimming off fat commissions. “The question is not That is becoming a reality. A business called Kamix uses whether blockchain blockchain to help people send money home to their relatives technology can quickly and cheaply, at a cost of just €1 ($1.12) per transaction. provide an alternative, Fizzy and Kamix both show that cryptocurrencies are more but whether it than vehicles for speculation and have real-world uses. needs to?” GAME-CHANGER? And yet blockchain is underdelivering on its promise. In a January 2019 research paper called Blockchain’s Occam Problem, the consulting firm McKinsey wrote that blockchain is all too often “a solution in search of a problem”. 74 CAMPDENFB.COM ISSUE 76 | 2019

LEADING EDGE A trio of its consultants wrote: “Given the range of alternative WHAT IS payments solutions and the disincentives to investment by BLOCKCHAIN? incumbents, the question is not whether blockchain technology can provide an alternative, but whether it needs to? Occam’s In the simplest terms, blockchain is a tamper- razor is the problem-solving principle that the simplest solution proof database. Identical versions of the tends to be the best. On that basis blockchain’s payments use database—or “ledger”—are held by multiple cases may be the wrong answer.” people. This is why it is called a “distributed ledger”. Such a ledger is secure because Many blockchain innovations have failed to get beyond the anyone wanting to change the record would proof-of-concept stage, they say. have to change them on all (or, in reality, many) of the versions. The data is protected For all its slickness, blockchain-based solutions are not the by cryptography. best answers to problems. SWIFT, which helps banks send money between each other, has reacted to criticisms and the The second important feature of blockchain threats the blockchain poses by launching its Global Payments is that it can be updated securely without initiative to speed up payments. That is far more likely to solve going through a central authority—it is a true the problem of slow payments than a blockchain start-up. peer-to-peer network. Imagine a network of people or organisations own tokens, which Now the wild-eyed optimism around blockchain has settled they can transfer to each other. Every so down, its real applications are becoming clear. Because it is often, each participant takes a snapshot of immutable, it can be used to run “static” registries of ownership what they own. These are combined to create of goods, for example land or other valuable goods, where a picture of the tokens’ distribution. there are rare changes. Because it can be updated regularly from many locations, it can be used to run complex “active” This picture is time-stamped. The process is registries, where there is lots of activity that is hard to keep repeated. Each snapshot is called a block, and track of—shipping is an example of this. It can be used the blocks can be combined into a chain—a for smart contracts in industries like insurance, to reduce “blockchain”—to make an unfabricated record administrative work and speed up payments. There would be of the tokens’ movement over time. Those advantages to storing medical records on blockchain systems, tokens can be units of currency, shipping so they would be available instantly to any medical professional containers, tomatoes—anything you like. who needs them in any location. And blockchain can be used to speed up complex payments that involve multiple currencies. Blockchain can also be used more strategically, says McKinsey. Yes, it can solve business problems. But it can also be a tool to bring together organisations—perhaps members of an industry—by encouraging them to talk and work on a shared project, or to encourage standardisation of processes. But it can also be something else. Because blockchain sounds futuristic and flashy, telling the world you are using it can be a way to signal that an organisation is modern, perhaps as PR or to attract investors’ attention. That’s not a negligible aim, even if it isn’t quite what bitcoin’s dreamers had in mind. In fact, the use of the word blockchain to boost interest in a company has become ridiculous. When a company called Long Island Tea changed its name to Long Blockchain Corp and sent out a press release vaguely promising to “leverage the benefits of blockchain technology” its stock price immediately rose by 500%. Reality has a way of puncturing the visions of utopian dreamers. ISSUE 76 | 2019 CAMPDENFB.COM 75

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Philanthropy, impact investing, sustaining traditional values LEGACY 80 TRUST IN AMERICA Public service is in the DNA of the Pew family, but how is their Pew Charitable Trusts coping in the era of Trump? 88 94 PASSION PERFORMER ICON: GLORIA VANDERBILT Hong Kong venture capitalist Johnny Fashion icon and heiress, Hon wants to maximise his returns in entrepreneur and artist— Gloria investments and philanthropy Vanderbilt was all these and more CAMPDENFB.COM 79

SERVING trustthe PUBLIC From private foundation to public In November 2006, the US city Philadelphia was charity, The Pew Charitable suddenly thrown into a cultural crisis. Thomas Trusts has worked to improve Jefferson University, a Philadelphia medical school, the world. But how can the announced it had agreed to sell The Gross Clinic— organisation deal with complex Thomas Eakin’s treasured artwork of 1875 depicting global issues in an era of hostile world-famous Philadelphian surgeon Samuel Gross populism and nationalism? Susan operating on a man in front of an audience of students Lingeswaran finds out and colleagues. It seemed after spending its entire life at the university, the celebrated masterpiece would be taken out of the city in a joint purchase arrangement between the National Gallery of Art in Washington, and Walmart 80 CAMPDENFB.COM ISSUE 76 | 2019

LEGACY heiress Alice Walton for her upcoming Crystal Bridges Top: The Pew private family foundations into a Museum of American Art in Arkansas for $68 million. Charitable powerhouse public charity. Trusts and other The reaction was swift. Alumni, faculty and students national local Pew had a long history of giving in the expressed their outrage and the banner headlines from groups work city, advancing hometown causes like the local media whipped up anger in city. As the furore to ensure US arts and public welfare and encouraging swirled, the university wavered and offered Philadelphian national parks, public support for its wider charitable institutions 45 days to match the offer. But how could the such as Arches projects. Here, it set out to do what they city match the $68 million offer to keep the painting? Up in Utah, are did best. After releasing a fact sheet stepped The Pew Charitable Trusts—the $5 billion maintained and outlining the issue, Pew rallied support Philadelphia-based institution that had, only a few years protected from local patrons and policymakers to before, transitioned itself from being one of US’ largest bolster the city’s cause. These efforts soon saw $68 million worth of donations from all over the city, including from Pew, and it was agreed that custody of the artwork would be given jointly to the Philadelphia Museum of Art and the Pennsylvania Academy of the Fine Arts. Philadelphia ended up retaining its masterpiece, and the city revelled in a win for the Pew-led home team. FAMILY ACORNS It’s these kinds of success stories that litter the history of Pew’s charitable works since its transformation from a foundation into a charity. But while the Eakin’s rescue shone considerable media attention onto Pew as a charity, it could not have been more different from its first iteration. “Pew started out as seven individual trusts established between 1948 and 1979 by the four children of Joseph Newton Pew, the founder of US oil and gas company Sun Oil, and his wife Mary Anderson Pew, in honour of their parents’ wishes,” Sally O’Brien, senior vice president of philanthropic partnerships at Pew, tells CampdenFB at Pew’s London office. Sticking to their parents’ religious conviction that good works should be done discreetly, all gifts directed by the siblings—J Howard Pew, Mary Ethel Pew, Joseph N Pew, Jr, and Mabel Pew Myrin— were made anonymously to causes ranging from cancer research, to the Red Cross, to projects assisting black colleges. “All the grant-making Pew did was underpinned by the values of the Pew family, and one of the driving factors behind it is that the founders really were not looking for glory—they were looking to serve the public good,” says O’Brien. But in 1957, after realising they wanted to have more of an impact on PHOTOGRAPHY: NPS/NEAL HERBERT CAMPDENFB.COM 81

causes the siblings supported, they changed tack. “After a while it became clear OUR MARINE that making these gifts anonymously wasn’t having the PORTFOLIO ALONE IS effect the organisation sought and A 10-YEAR STRATEGY, Pew realised it’s impact could be BUT WITHIN THAT WE amplified by the example of its HAVE THREE-YEAR philanthropy, so it started PROJECTS AND TWO- becoming more public and making grants visible,” says O’Brien. The first visible grants came via the Pew Scholars Program in YEAR PROJECTS, AND Biomedical Sciences, which funds IT’S THE SAME FOR scientists working at the cutting- edge of research to allow them to OTHER PORTFOLIOS freely pursue new ideas without obligation towards the donor. Gradually more and more gifts emerged with the Pew name attached, and the organisation began to shift its interest to US public policy. “We were a foundation and there are rules in the US about what a foundation can and can’t be,” says O’Brien. “We increasingly began to realise that our grant-making was engaged in trying to make change, often in the policy arena and the board—half of which still comprises Below: Pew members of the Pew family—decided to change our status supports long- from private foundation to public charity.” term solutions to address The move was almost unheard of in the realms of deferred philanthropy, but Pew had ambitions to more actively work maintenance across on healthcare, pre-school education, and environmental America’s policy—issues it had long been interested in, but where it National Park was constrained by its status as a private foundation. System, In 2002, Pew became a $3.9 billion organisation capable including repairs to this historic of soliciting money from the public, just like a university structure at or hospital, and create pooled donor funds. Money from Gettysburg Pew as a public charity could also amount to more than National Military Park 82 CAMPDENFB.COM ISSUE 76 | 2019

LEGACY Above: Trans- 2% of a non-profit organisation’s revenue—a shipment, the limit Pew as a family foundation could not transfer of fish exceed. between a fishing vessel “That change enabled us to have greater and a carrier impact because we were able to bring our vessel at sea work essentially in-house and grow from an or in port, is an organisation of about 100 people to one of important part about 1,000 people today,” O’Brien says. of the global commercial But even after transitioning into a public fishing industry. charity, the organisation has not abandoned Pew is working its family roots. Members of the Pew family, to establish mainly fourth generation, still make up more clear and than half of the board of directors and consistent collectively make decisions—James S Pew, J global rules for Howard Pew II, Joseph N Pew V, Mary Catharine Pew, transshipment R Anderson Pew, Sandy Ford Pew and Doris Pew Scott as part of sit on the 13-strong board. its efforts to restore the DEEP IMPACT health of marine ecosystems Although now a public charity, Pew identifies as a hybrid Right: The and still does the traditional grant-making—especially in Pew Charitable its home town of Philadelphia—much as it has done for Trusts have decades. The big difference is the scale of its projects and lobbied the operations. Such is its heft, instead of focusing on a US Congress singular issue, it has the resources to step back and take to address on the wider and more complex picture. the massive maintenance “Take our environmental portfolio—we don’t state that backlog in we want to save specific species—we have an overarching the national strategy based on the protection of biodiversity instead,” parks, including O’Brien explains. Sequoia National Park in “Now, that is very big and broad, but within it we California create all these smaller lines of work with particular geographies or species that ultimately feed up into the larger strategy of protection of biodiversity both on land and at sea. “Our marine portfolio alone is a 10-year strategy, but within that we have three-year projects and two-year projects, and it’s the same for other portfolios.” A quick glance at Pew’s official website and it is clear Pew’s environmental portfolio is by far its widest ranging. From protecting Chilean Patagonia to global tuna conservation to restoring America’s parks, Pew has its sights set on fixing the world. So how do they choose which issues to tackle? “There isn’t a magic formula—it’s a sort of iterative process,” O’Brien says. “We’ve been really focused on building capacity in the marine space for the past 30 years, so there is a natural process where if you start off in one area, you develop expertise and it leads to the next and the next after that.” Other times, the issue finds its way to Pew. For its restoring America’s parks project, which focuses on fixing the $11.9 billion deferred maintenance backlog facing the National Park Service, it was a previous PHOTOGRAPHY: THE PEW CHARITABLE TRUSTS, ISTOCK CAMPDENFB.COM 83

LEGACY donor who approached Pew to address the Right: The Pew FACTS AND THE FUTURE problem and ended up co-funding the Charitable Trusts project, says O’Brien. was founded In 1946, when asked to offer advice to the newly elected in Philadelphia president Harry Truman, J N Pew, one of the founding “I don’t think we would have done a and continues to siblings of Pew, rather pithily told him to ‘tell the truth project on the parks if it hadn’t come to contribute to civic and trust the people’—a principle which remains at the us in that way. Sometimes what we work life in the city heart of Pew today. on grows organically within the Below: Chile’s organisation, it sometimes comes from the Patagonia Today, Pew describes itself as a non-partisan global boardroom and sometimes it comes from region is one research and public policy organisation leveraging its outside from people that want to work of the world’s own assets—$6.76 billion as of June 2018—and those of with us,” she says. last largely donors to improve public policy, invigorate civic life and intact natural inform the public. Pew’s projects don’t stop at the areas. Pew is environment either. At any one time it has collaborating The organisation’s interest in federal policy dates to about 50 projects underway that can with the 1984, when it collaborated to address homelessness in range from advocating to give children government, non- America with the United States Conference of Mayors access to dental care, to increasing the governmental and the Robert Wood Johnson Foundation. A research safety of food and drugs, to managing organisations, portfolio eventually emerged, examining US state student debt and everything in-between. and other local policy, including reports on education, state prisons stakeholders and election administration. But with such open-ended aims, how to enhance can the initiative’s success be measured? protection of Since then, its research arm has expanded, culminating With great difficulty, O’Brien says, in the creation of the Pew Research Center in 2004 as a especially when it involves changing subsidiary and neutral source of data and analysis, which public policy. shares information. “We get right down to the tactical and “We are slightly obsessive about ensuring our non- pretty mechanical forms of measurement— partisan research stance is understood,” says O’Brien. things like if we produced issue briefs, fact sheets and information and data to But Pew’s values have been facing a threat. From decision makers and then we look to see populist politicians appealing to prejudice rather than how often it gets cited,” says O’Brien. facts, to disinformation campaigns by those determined to undermine democratic process, to technology “We also have an internal score card for platforms that spread fake news at the click of a mouse, every project, a traffic light system public confidence in institutions telling the truth, like essentially, where each year in our work Pew, are at historic lows. plans we have targets that need to be met and at the end of the year, we score what Realising the lack of trust people have in the has been reached, what is ongoing and institutions that exist to inform them, Pew’s latest ones we couldn’t do.” 84 CAMPDENFB.COM ISSUE 76 | 2019

LEGACY Below: Historic PEW, A HISTORY a public charity, giving it more flexibility to Sun Oil offices engage in a wider array of initiatives and at Marcus Hook, T he Pew Charitable Trusts, an independent operate larger programmes. Pennsylvania. non-profit, is the sole beneficiary of several Right: Joseph individual charitable funds established between Expanding its works internationally, it created Newton Pew, Sr, 1948 and 1979 by two sons and two daughters projects to strengthen environmental and the founder of of Sun Oil company founder Joseph Newton energy policies, protect oceans and wild lands, Sun Oil Pew and his wife, Mary Anderson Pew. improve health through investments in child nutrition, increase safety of foods and drugs Honouring their parents’ religious convictions, and provide consumers with better information The Pew Memorial Foundation was a grant- about financial products. making organisation that made donations anonymously. Early priorities included cancer After opening a small office in Washington DC research, the Red Cross and a pioneering in 2003, Pew moved to a larger space in 2008 to project to assist historically black colleges. allow for more collaboration with other non-profit organisations and facilitate educational The foundation became the Pew Memorial programmes for policymakers and the public. Trust in 1956, based in Philadelphia, the family’s hometown. Today, The Pew Charitable Trusts is a global non-governmental organisation with three Between 1957 and 1979, six other trusts broad goals: were created, representing the personal l Improve public policy by conducting philanthropic interests of the four siblings— J Howard Pew, Mary Ethel Pew, Joseph rigorous analysis, linking diverse interests Newton Pew Jr and Mabel Pew Myrin. to pursue common cause and insisting on tangible results Pew’s interest in federal policy began in 1986, l Inform the public by providing useful data with the establishment of a programme on US that illuminate the issues and trends shaping economics and national security and 1994 the world Pew began working on a research portfolio l Invigorate civic life by encouraging examining state policy, including landmark demographic participation and strong reports on education, state prisons, and communities election administration. Through its non-partisan reporting and research and advocacy, Pew help cities and states invest in programmes that provide the strongest returns. In 2002, The Pew Charitable Trusts became PHOTOGRAPHY: COURTESY HAGLEY MUSEUM & LIBRARY, THE PEW CHARITABLE TRUSTS CAMPDENFB.COM 85

LEGACY step has been to tackle the issue head-on, Top: Staff WHAT IS THE PEW COPYRIGHT © 2019 THE PEW CHARITABLE TRUSTS. ALL RIGHTS RESERVED. REPRODUCED WITH PERMISSION. says O’Brien. convene RESEARCH CENTER? ANY USE WITHOUT EXPRESS WRITTEN CONSENT OF THE PEW CHARITABLE TRUST IS PROHIBITED at Pew’s “It’s just such a noisy environment out Washington The Pew Research Center is a non-profit there and we’re an organisation that is offices. Pew organisation and a subsidiary of The Pew based on trust so we approached [weekly remains guided Charitable Trusts—its primary funder. magazine] The Economist, which has by the values of always cleaved closely to facts and data, its founders— It originates from a research project created in and asked if they would like to have a four sons and 1990 by the Times Mirror newspaper called the partnership that is united around a daughters Times Mirror Center for the People and the Press, recognition of the importance of facts of Sun Oil which conducted regular polls on politics and major and data in informing policymakers,” company policy issues. she says. founder Joseph N. Pew—while In 1996, The Pew Charitable Trusts became the Their newly formed working to Center’s sponsor and it was renamed The Pew partnership has led to solve the Research Center for the People and the Press. The Evidence Initiative, challenges which, through events, of today In the ensuing years, The Pew Charitable Trusts multimedia materials Above: Sally launched other initiatives modelled on the neutral, and articles aims to O’Brien is independent facts-only approach of The Pew explore the problem of senior vice Research Center, including the Project for misinformation and president for Excellence in Journalism (1997), Pew Forum on what can be done. institutional Religion and Public Life (2001), Pew Hispanic Centre There is no quick fix, partnerships (2001_( and Pew global Attitudes Project (2001). O’Brien says, but any at The Pew solution must begin Charitable In 2004, The Pew Charitable Trusts established with a proper Trusts The Pew Research Center in Washington as a understanding of the subsidiary to house its initiatives. forces at play. Today, The Pew Research Center generates a “Both organisations foundation of facts that can enhance public dialogue have all this good data and helps key stakeholders in society— and analysis at our policymakers, media and the public–understand and disposal, and we hope The Evidence solve the world’s most challenging problems. Initiative will help to elevate that for the public good” she says. As a neutral source of data and analysis, The Pew Research Center does not take policy positions. With a taste for taking on the most complex and long-running problems, it’s Its activities are largely funded through grants hard to see what Pew has its eye on next. from The Pew Charitable Trusts. With seemingly endless issues facing society and world governments too busy fighting fires on their own doorsteps, might it be up to the Pews of the world to lead the charge and make a difference? “There is a lot of desire to solve the issues facing the world and at the end of the day, philanthropists can do what nobody else can because these big issues take significant resources, patience, time, determination and willingness to take risks,” says O’Brien. “And that’s the area where we believe we thrive—doing the groundwork that allows projects to take life and build into change. “For us, our future really just echoes our past—to do everything we can to make meaningful change for public good.” 86 CAMPDENFB.COM PHOTOGRAPHY: THE PEW CHARITABLE TRUSTS

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LEGACY WEALTH & PURPOSE AGSLPIRABTIAONLS Johnny Hon, founder and executive chairman of international venture capital firm Global Group International Holdings, has pursued success in business as a route to giving back. He tells Susan Lingeswaran why philanthropy is so important and what he has learnt along the way Dr Johnny Hon, When it comes to more people was as a businessman, rather executive chairman, investments, Dr than as a doctor or a scientist, because if I Global Group Johnny Hon is a was successful, I would be able to commit International Holdings master. From art and far greater resources to worthy causes close 88 CAMPDENFB.COM wine collecting and to my heart.” movie financing, to owning champion racehorses and investing Hon instead became a private banker, in innovative tech, the founder of the developing expertise in financial Global Group has made a career turning planning, lending, and portfolio his passions into successful investments. management. It led him to form The Global Group International Holdings But it could all have been so different in 1997, which has grown into an for Hong Kong-born Hon who, as a international conglomerate, providing student, was happily paving his way corporate financial advice and boutique towards a career in medical research, investment-banking services. The Global having graduated from King’s College Group also raises funds to support London with a biomedical science degree. innovative enterprises at every stage of It was while studying for his PhD in development, from startups, right through psychiatry at Cambridge University, to initial public offerings (IPO). however, that Hon realised he wanted to pursue a career that could finance his love But growing his business could have of philanthropy. been a shallow endeavour if it didn’t have a higher purpose, Hon admits. The group’s “Whilst studying I knew I wanted to success has ultimately allowed him to not give back in a serious way,” he says. only indulge and invest in his passions, including the entertainment industry and “I came to realise that, for my own skills racehorses, but to give back to society. and abilities, the most effective way to help ISSUE 76 | 2019

Since 2004, Hon has funded scholarships, I BELIEVE THAT IN ingrained into me from a very young age. set up numerous foundations and donated ORDER TO ACHIEVE Throughout my upbringing I was taught to charitable projects. He has also served in THE BEST RESULTS that there are many people who are less senior management and advisory positions IN PHILANTHROPY, fortunate, and that it is our responsibility for 30 major charities. In the UK, the YOU MUST BE to readjust the balance as much as possible. Global Group works with the Duke of PASSIONATE ABOUT Edinburgh fellowship, and with Oxford THE CAUSE OR “Pursuing a career in business has been University in donating scholarships. In HAVE RELEVANT less about how much money I can make China, they help children with congenital EXPERTISE for its own sake, and more about how I heart disease and Down’s syndrome. can translate my success into a position that allows me to better help others. And he’s looking to do more. With business thriving at Global Group, Hon “There is no doubt that giving back has wants to reinvest more of his earnings made me a better businessman and given back into the community. me a greater sense of purpose.” How do you choose which areas “My philosophy was that by getting into you give to? business, I could make more money and “I was born in Hong Kong and have help more people, so philanthropy is an studied in the UK and US and I’m a firm important part of this process,” Hon says. believer that you should stay true to your roots, and this certainly applies to my “We’ve donated to more than 180 long involvement with the Lok Sin Tong charities worldwide and half of the money Benevolent Society, one of Hong Kong’s we’ve made goes towards helping charities leading charities. internationally.” What motivates your “I believe that in order to achieve the philanthropic giving? best results in philanthropy, you must be “The importance of giving back was passionate about the cause or have relevant ISSUE 76 | 2019 CAMPDENFB.COM 89

LEGACY expertise. One of my achievements in technology such as artificial intelligence Above: A project close to Dr Hong Kong was establishing the most (AI) can further scientific discoveries. Hon’s heart has been opening modern elderly residential home using the a water purification plant in knowledge I gained during my PhD studies “In the UK, for example, AI is New Delhi, India in psychiatry, where I specialised in the already being used to support the Below: From art and wine link between Down’s syndrome health service in areas as diverse as collecting to movie financing and Alzheimer’s. early-stage cancer detection, to remote and tech, Dr Hon has made operations, or providing a second a career turning his passions “One other way that I choose the areas insight into radiology scans.” into investments I want to support, another is attending networking events. These events marry up “This is just one example of how business and social responsibility, and as philanthropy in its purest sense—the such they are a great resource for meeting desire to promote the welfare of others—is people with incredible stories to tell and present throughout all of the work I do.” projects to promote.” What are the common Which project are you most misconceptions about proud of? philanthropy? “It is impossible to rank my philanthropic “A misconception among philanthropists, projects, as each fills me with great pride, which I often tend to encounter, is the and I am involved in a huge range of belief that the more projects that you are activities and causes around the world. involved in, the better. “However, a recent project that is particularly close to my heart is my support of WaterHealth International. Two years ago, I donated a water purification plant in Azadpur, near the Indian capital New Delhi, to support the work this exceptional socially responsible company does to aid economically poor and socially disadvantaged groups. “This is perhaps the perfect example of how my work and philanthropy are intrinsically linked. I am passionate about East to West commercial relations, and specifically about raising awareness of the manifold opportunities there are to collaborate with rapidly developing major economies like India.” What types of projects are you looking to focus on in the future? “Increasingly, I am looking to invest in sectors that serve a humanitarian goal: to safeguard the future of generations to come. “As a father of four young children, I want to make sure my investments do not contribute to the ever-looming threat of climate change or the reckless depletion of finite resources. “In 2019, I am particularly focusing on so-called impact investments— investments with ethics running through their core. This ranges from supporting the biotechnology space and considering how 90 CAMPDENFB.COM ISSUE 76 | 2019

ULTIMATELY, OUR “Personally, I prefer a more measured principle of all my philanthropic activities. PRIMARY OBJECTIVE and reasoned approach to truly get the “It is important to remember that MUST BE TO MAKE greatest benefits out of my philanthropic THE WORLD A BETTER work—taking the time to pick a project philanthropy is not just a numbers game. PLACE, AND THAT’S with a purpose that you are passionate Instead investors must choose to support WHY INVESTING about will make for a better outcome. causes where they believe they can truly IN THE FUTURE IS make a difference. OF THE UTMOST “Philanthropy is a big-picture concept: IMPORTANCE it has to be a commitment to the greater “The best way to do this is to match good and is not simply a project that you up your passions and expertise with can see from start to finish in a short time your charity of choice. Much of my span. It is something that could last for philanthropy relates to my personal life many years before it is completed. Indeed, experiences and professional career. it may never reach completion.” What advice do you have for “My work has taken me on visits to family business leaders looking countries like South Sudan and Armenia to give back? and allowed me to explore economic “Ultimately, our primary objective must development initiatives, whilst also be to make the world a better place, and providing support first hand to help that’s why investing in the future is of the disadvantaged communities. utmost importance—this is the guiding “I always recommend investors get hands-on with the charities they support—for me, there’s no better way to measure the success of philanthropic efforts than by being on the ground. It also allows you to see the positive impact of your investment on the frontline. Which areas do you believe need more philanthropic investing from families? “There is a huge need for additional impact investment in new technologies, such as biotechnology, green technology, and agricultural technology. There are currently over seven billion people living in the world, and this number is expected to increase by a further two billion by 2050. “Families with charitable foundations, or those looking for their next philanthropic investment, could certainly consider investing in ways to help counteract a potential crisis of food and water supply as these options will give back, improve quality of life, and benefit many generations to come. “Population growth will create significant global challenges, whether they be environmental or in terms of access to quality education and healthcare. “Impact investing will be vital to business and ultra-high net worth and high net worth families and individuals should consider how they could interlink their business and philanthropic interests here. “Investment in these emerging ISSUE 76 | 2019 CAMPDENFB.COM 91

LEGACY technologies may help to provide cures for Above: A keen horse DR HON’S diseases such as heart disease, cancer and breeder, Dr Hon PHILANTHROPIC diabetes—which will have a tremendous racehorses have won VENTURES impact on quality of life, mortality rates, 16 times, ridden by and the entire society.” champion jockey Gerald n Korea Johnny Hon Education Fund for Where do you believe philanthropy Mosse (pictured) students of DPR Korea (DPR Korea) is heading in the future? “I think the extraordinarily fast “I THINK THE n S ponsor of the University of pace at which technology and the EXTRAORDINARILY Buckingham Foundation (UK) needs of society are developing and FAST PACE evolving will have a huge influence in AT WHICH n S ponsor of the first London production shaping the future of philanthropy. TECHNOLOGY at Sadlers Wells of the China National AND THE NEEDS Beijing Opera Company (China/UK) “Entrepreneurs who understand the OF SOCIETY ARE impact and role of such new technology DEVELOPING n S ponsor of the Hardman Trust can increasingly fill the social gaps that AND EVOLVING Award Scheme (UK) exist, as governments alone cannot cope WILL HAVE A with this rapid pace of change. HUGE INFLUENCE n H on Foundation for Music and IN SHAPING the Performing Arts (UK) “I believe government focus should be THE FUTURE OF on maintaining traditional sectors such as PHILANTHROPY n J onny Hon China Scholarship education and health, while entrepreneurs for International Relations at can use their skills to undertake projects Oxford University (UK) where there is more risk involved and where creative solutions are needed to help n J ohnny Hon Peking University people in need. Scholarships at Hughes Hall, Cambridge University (UK) “For example, Bill Gates is currently engaged in a project to find the right n H ong Kong Qinghai Johnny vaccine for HIV, where I believe Hon Hope Primary School in governments would not have the necessary Qinghai Province (China) skills to drive this kind of work as effectively. Ultimately, I think that n M ajor donor of The Rotary successful businessmen and women will Foundation (US) contribute more and more to philanthropy and become the backbone of giving for n M ajor donor of The Five Star Scholarship future generations.” Foundation, Guangdong Province (China) n M ajor donor of the Cultural Activity Centre, Guangdong Province (China) n M ajor donor of the Hong Kong Youth Cultural and Arts Competitions Committee (Hong Kong) n G lobal Group Dr Johnny Hon Foundation for Children with Congenital Heart Disease, Heilongjiang Province (China) n D iamond Benefactor of the Duke of Edinburgh’s Award World Fellowship (UK) n H ong Kong Road Safety Patrol Dr Johnny Hon MH Scholarship (Hong Kong) n W ater purification plant in Azadpur, New Delhi for WaterHealth International n M ajor donor of the New Countryside Construction, Guangdong province (China) n D iamond sponsor of the Mentor Foundation In Light of Youth Benefit Dinner (US) 92 CAMPDENFB.COM ISSUE 76 | 2019

MARKET INSIGHT Understanding the needs of the modern family office Joe Moynihan, CEO, Jersey Finance T here’s no doubt that family offices FAMILIES The availability of specialist expertise and continue to evolve, with traditional POINTED Jersey’s talent pool was also a critical factor, as models, where a family’s interests are CONSISTENTLY was the legal environment in terms of ensuring directed by a single ‘head’ in a small number TO THE certainty around asset protection and wealth of jurisdictions with shared objectives, being a STABILITY preservation, and the focus Jersey places on thing of the past. JERSEY OFFERS confidentiality and professionalism. AS A KEY Today, a family office is much more global, REASON FOR Families also valued the ease of doing diverse, and tech-savvy. LOCATING business in their partner jurisdictions, with IN THE Jersey’s infrastructure and approach to As a result, their jurisdictional demands JURISDICTION technology creating an overwhelmingly positive have changed too – and quality international perception of it being ‘open for business’. finance centres (IFCs) like Jersey have stood to benefit, thanks to an appreciation that The connectivity Jersey provides, being now more than ever, sophistication, expertise within easy reach of London and other major and good governance are vital to the sector’s hubs, was a positive factor too, whilst, perhaps future. unsurprisingly for an Island with stunning countryside and coastline, lifestyle was Insight frequently cited as a key reason for a family choosing Jersey. To help us better understand the mindset Find further information of today’s family office, over recent months about this research Global we worked closely with a number of family and useful resources offices to produce a piece of fieldwork that for families wishing Understanding the key drivers for jurisdictional highlights their personal experiences and offers to establish a family selection amongst family office puts Jersey in an insight into their rationale when it comes to office, or an existing a really strong position to continue to support jurisdictional decisions. family office wishing to family offices and, by drawing on its solid redomicile or relocate to infrastructure, access to specialist advice Whilst all family offices are unique, what Jersey, at jerseyfinance. and ability to offer a wide range of products became clear was that they share several je/familyoffices and services, help them achieve their future common aspirations, with wealth preservation, ambitions. asset protection, philanthropy and privacy consistently at the fore of their minds. With this fieldwork highlighting the increasingly sophisticated and global nature From the families we spoke to, a number of of the modern family office, our teams in themes came out strongly. key markets, from Robert Moore in London to colleagues in the Gulf region, Africa and Families pointed consistently to the stability Greater China, are using this intelligence to Jersey offers as a key reason for locating continue to work closely with family offices in the jurisdiction, whilst the reputational and illustrate the positive role Jersey can play in advantages, particularly in terms of attracting helping to meet their wealth preservation, asset investors and pursuing philanthropic protection, philanthropic and privacy concerns. objectives, and Jersey’s standing as a well- regulated jurisdiction were also vital. ISSUE 76 | 2019 CAMPDENFB.COM 93

LEGACY INTREPID ICON HEIRESS Gloria Gloria Vanderbilt, US heiress, launching a line of designer jeans in the Vanderbilt artist and fashion designer, 1970s, which grew into an empire, raking died aged 95 at her Manhattan in $100 million per year. She eventually (1924-2019) home surrounded by family made more money through her fashion US heiress, artist, and friends. She had been venture than she had inherited, diversifying fashion designer, suffering from advanced stomach cancer, into other products including accessories, entrepreneur and which had been diagnosed a month before. homeware, and shoes. author She is survived by her three children, Christopher and Leopold “Stan” Stokowski After her fashion career ended in the 1924 and Anderson Cooper. 1990s, she focused primarily on creating art and writing, publishing several books of BORN IN NEW YORK ON Vanderbilt was the great-great poetry and memoirs. 20 FEBRUARY granddaughter of rail and shipping tycoon Cornelius Vanderbilt, who was once For all her fortune and success, however, 1925 America’s richest man. Her father, Reginald her private life was marked by tragedy. Vanderbilt, heir to that fortune, was an Vanderbilt married four times and had four VANDERBILT INHERITS THE alcoholic playboy gambler who died when children—two with conductor Leopold FAMILY FORTUNE THROUGH Vanderbilt was 18-months-old. Upon his Stokowski and two with her fourth A TRUST FUND AFTER HER death, she immediately inherited $4.7 husband, Wyatt Cooper, who died after FATHER’S DEATH million via a trust fund and was left in the open heart surgery at the age of 50 in care of her 21-year-old mother, Gloria. 1978. Her son Carter Vanderbilt Cooper 1934 committed suicide, jumping from his As a child, Vanderbilt was embroiled in mother’s balcony in 1988, aged 23. CUSTODY BATTLE BETWEEN an infamous custody battle in 1934 when VANDERBILT’S MOTHER AND her paternal aunt, Gertrude Vanderbilt In his mother’s obituary, her son, US PATERNAL AUNT ENDS WITH Whitney, founder of the Whitney Museum, journalist and television personality HER AUNT WINNING CUSTODY challenged for custody of ‘little Gloria’. In Anderson Cooper, described Vanderbilt a scandalous court hearing, Vanderbilt’s as “an extraordinary woman, who loved 1945 mother was accused of being a lesbian, a life, and lived it on her own terms. She was philanderer and an alcoholic. The court 95-years-old, but ask anyone close to her and GAINS ACCESS TO HER $4.3 eventually gave strict custody to Aunt they’d tell you, she was the youngest person MILLION TRUST FUND AT Gertrude, leading Vanderbilt to be dubbed they knew, the coolest and most modern.” AGE 21 “poor little rich girl” by the press. 1954 She started her career in modelling at the age of 15 and was photographed MAKES HER STAGE DEBUT for Harper’s Bazaar—the first of many IN THE ROMANTIC DRAMA appearances as a fashion model. She would THE SWAN AT THE POCONO go on to appear in Vogue and Vanity PLAYHOUSE, PENNSYLVANIA Fair magazines and pose for renowned photographers, including Richard Avedon. 1968 By the late 1960s she had developed her LICENCES HER ARTWORK TO own creative drive and earned her own HALLMARK CARDS FOR A LINE income as a successful artist and socialite. OF PAPER GOODS She founded a successful fashion business, 1977 PARTNERS WITH FASHION FIRM MURJANI TO SELL DESIGNER JEANS EARNING $10 MILLION A YEAR IN ROYALTIES 1988 JOINS DESIGNER FRAGRANCE MARKET WITH HER SIGNATURE “GLORIOUS” 1996 PUBLISHES A MOTHER’S STORY DOCUMENTING HER GRIEF OVER HER SON’S DEATH 2016 RELEASES DOCUMENTARY FILM ABOUT HER LIFE, NOTHING LEFT UNSAID, WITH SON ANDERSON COOPER 2019 VANDERBILT DIES IN NEW YORK ON 17 JUNE 94 CAMPDENFB.COM PHOTOGRAPHY: PA IMAGES

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IN A CHANGING WORLD, ENTREPRENEURS SET THE PATH FOR FUTURE GENERATIONS. SUPPORTING ENTREPRENEURS As an entrepreneur, you can drive positive impact for the future with each business decision. To help you focus on this impact, we bridge your professional and personal needs. With our support for entrepreneurs, your wealth has a voice. Let it be heard. This advertisement is for informational purposes. It is not an offer for the purchase or sale of any financial instrument, investment product or service and should not be relied upon. You should seek your own independent advice accordingly. BNP Paribas, a French Société Anonyme with a capital of 2.496.865.996 Euros, Head Office 16 boulevard des Italiens, 75009 Paris, France, registered under number 662 042 449 RCS Paris, registered in France as a bank with the French Autorité de Contrôle Prudentiel et de Résolution and regulated by the French Autorité des Marchés Financiers. BNP Paribas Wealth Management, is a wholly owned subsidiary of BNP Paribas. It operates through its branches in Singapore and Hong Kong. © BNP Paribas (2019). All rights reserved.