Family Office – Hedge Fund Trend: Escaping Fees, Regulation, and Public Scrutiny

13 Oct 2025

Family Offices and Hedge Funds: Two Worlds, One Point of Convergence

Family offices and hedge funds have long existed in parallel.

One manages the wealth of high-net-worth families; the other pools external capital to chase returns for institutional investors.

In recent years, these worlds have begun to converge. Rising regulation, fee pressure, and scrutiny are pushing hedge funds to adopt the privacy, governance, and long-term focus of family offices. Understanding both models is the first step to seeing why so many managers are crossing over.

What is a Family Office?

A family office is a dedicated entity designed to protect and grow family wealth across generations. It brings together investment management, estate planning, and succession planning under one roof. Unlike general wealth managers, single-family offices and multi-family offices integrate legacy planning with family governance, ensuring that decisions reflect both family values and financial returns.

Beyond investments, family offices extend into lifestyle and support services:

Concierge services, including philanthropy coordination and travel management.
Property management for real estate portfolios and family-owned assets.
Education and governance frameworks to prepare younger family members for future leadership.

This breadth makes family offices one of the world’s most strategic structures for wealthy families seeking continuity and control.

What is a Hedge Fund?

A hedge fund is an investment vehicle that pools external capital from institutional investors and high-net-worth individuals. These funds trade across a wide array of asset classes, from public markets to alternative investments, often using leverage to amplify returns.

Performance reporting, disclosure standards, and investor protections are enforced by the Securities and Exchange Commission, resulting in higher compliance costs and ongoing scrutiny. For managers, this oversight limits flexibility and ties business models closely to regulation.

Hedge funds operate as businesses. They compete for capital from pension funds, mutual funds, and other institutional investors while managing interest rate exposure and market volatility on a global scale. In recent years, fee compression and tighter oversight have made this model harder to sustain profitably.

Similarities in How Both Manage Investments

Despite their differences, both hedge funds and family offices share core functions:

They employ professional wealth managers to manage investments.
They use structured reporting and data consolidation to track performance.
They pursue diversification across asset classes, including private equity, private credit, and alternative assets.

Both also rely on disciplined risk management frameworks. Whether serving a pool of investors or a single family, investment managers evaluate liquidity, market conditions, and long-term goals before allocating capital.

The Big Split: Regulation, Fees, and Long-Term Goals

Although family offices and hedge funds share investment expertise, their missions diverge when regulation, costs, and objectives come into play. This is where the contrast becomes most visible.

Criteria	Hedge Funds	Family Offices
Regulation	Heavy SEC filings, disclosures, and compliance	Operate under family office exclusion, with fewer disclosure requirements
Fees	“Two and twenty” model, under pressure from investors	No external fee model, all returns accrue to the family
Objectives	Beat benchmarks, meet redemption schedules	Preserve the family’s assets, link to succession planning, and legacy preservation.
Stakeholders	Outside capital: pension funds, mutual funds, institutional investors	Family office principals and family members

Hedge funds face quarterly redemption pressure, fee scrutiny, and the constant risk of regulatory spotlight. Family offices, by contrast, link investment management to continuity and the ability to transfer wealth seamlessly.

Over the past decade, two-thirds of hedge fund managers who converted into family offices did so to escape external pressure. In recent years, rising interest rates, market volatility, and strain on business models have accelerated this shift. While hedge funds optimise for performance and scale, family offices optimise for control, privacy, and growing wealth that endures across generations.

Why Hedge Funds Transform into Family Offices

The shift from hedge fund to family office is not cosmetic. It is a structural pivot driven by regulation, cost, and the desire for privacy. In recent years, many of the world’s family offices have been founded by former hedge fund managers who saw greater stability in serving a single family instead of appeasing outside investors. This transformation has changed the balance of power in wealth management, with multifamily offices also adopting hybrid strategies that combine institutional expertise with private governance.

Regulation Pushes Managers Out

SEC compliance, constant disclosures, and investor reporting increase costs and expose managers to lawsuits.

Annual filings, stress-test requirements, and frequent examinations make hedge funds costly to run.
Lawsuits and regulatory penalties risk not just assets under management, but personal reputations.

Converting to a family office removes many of these obligations under the family office exclusion, allowing principals to manage investments with fewer disclosure requirements and significantly lower compliance overhead. For example, hedge funds such as Scottwood Capital have publicly cited risky credit markets and declining returns as reasons for returning external capital and converting to a family office status.

Fees and Scrutiny No Longer Justify the Effort

The traditional “2 and 20” fee model, 2% of assets plus 20% of performance, is under pressure.

Pension funds and institutional investors demand steep discounts.
Performance fees are harder to defend in volatile markets.

Operating as a family office eliminates fee negotiations and the burden of quarterly performance reviews. Wealth managers invest solely for family office principals and family members, aligning incentives directly with family wealth. According to the Global Family Office Report 2024, about 33% of family offices still rely on hedge funds for diversification. That number is shrinking as fee and disclosure burdens grow.

Cost Savings Mean Lighter Infrastructure

Without investor relations, marketing, or external audits, operating costs fall sharply.

No need for investor roadshows or fundraising teams.
Lower legal and accounting expenses due to reduced disclosure.

Every dollar saved on compliance staff or litigation defense is redirected to direct investments, private equity, or family wealth preservation. A 2025 report from UBS shows that family offices are increasing allocations to private debt, stimulated by interest rate hikes that raise the appeal of fixed-income yield over risky external fund fees.

Control And Privacy Drive The Shift

External capital comes with strings attached, including quarterly redemption windows, benchmark chasing, and investor oversight. By converting to a family office, principals:

Take concentrated positions without public scrutiny.
Allocate freely to private credit, venture capital, and direct deals.
Avoid explaining strategic bets to pension funds, mutual funds, or activist investors.

A recent BNY survey found a 34% rise in family office professionals planning to increase allocations to private equity over the past 12 months, especially among offices managing more than US$1 billion. That signals a strong desire for strategy control.

Legacy Planning Becomes Easier

Hedge funds focus on quarterly benchmarks. Family offices focus on continuity.

Estate and succession planning are embedded directly into investment decisions.
Governance rules formalise decision rights between senior and younger generations.
Structures ensure assets transfer smoothly without forced sales or dilution of control.

Conversion enables principals to integrate family governance and succession planning into the investment process, transforming short-term gains into enduring family wealth. According to Empaxis / Deloitte, the global number of single-family offices rose to ~8,030 in 2024, up from ~6,130 in 2019, a 31% jump.

Wealth Management Advantages in the Family Office Hedge Fund Model

The family office hedge fund model shifts wealth management away from quarterly performance and toward continuity. Focusing on family values and long-term goals allows wealthy families to integrate investments, governance, and succession into a single framework. This structure creates advantages that traditional hedge funds cannot replicate.

Investment Strategies Aligned With Wealthy Families

Family office hedge funds build portfolios around the priorities of one family, not institutional investors.

Allocations include alternative investments, private equity, venture capital, and private companies.
According to UBS’s 2025 Global Family Office Report, alternatives now make up about 44% of allocations across leading family offices, led by private equity, real estate, and direct investments. Aleta
In 2023, private equity via direct investments and funds/funds-of-funds each averaged around 11% of portfolios.

This alignment ensures that investment management supports continuity and resilience across generations.

Direct Investments And Private Credit

Without outside investors to satisfy, principals can pursue opportunities that traditional hedge funds often avoid.

Direct investments allow families to co-invest in private companies alongside trusted partners.
Private credit strategies provide yield and liquidity while bypassing crowded public markets.
Freedom from investor mandates enables families to structure deals that balance return with governance control.

Yet many family offices are still cautious: over 57% allocate less than 10% of their portfolios to private equity or venture capital. Meanwhile, family offices already represent a significant subsector within private markets, with a 27% share of private-capital assets globally, totaling US$6.1 trillion.

Growing Wealth Across Generations

Family office hedge funds integrate investment management with broader financial planning.

Philanthropy coordination and impact investing align wealth with values.
Structured governance ensures that growing wealth supports both senior and younger generations.
Education initiatives prepare heirs for succession and decision-making responsibilities.

This integrated approach turns wealth into a platform for continuity rather than consumption.

Customisation Of Risk Management

Unlike hedge funds bound by broad mandates, family office hedge funds tailor risk frameworks to the family’s unique profile.

Leverage limits reflect family governance rules.
Liquidity strategies encompass legacy planning and long-term objectives.
Asset allocation decisions balance preservation with selective risk-taking in alternative assets.

Customisation ensures that generational wealth is protected while still taking advantage of opportunities across market cycles.

The family office hedge fund model is more than a shift in investment vehicle. It is a strategic redesign of wealth management that aligns portfolios with family governance, values, and legacy. By prioritising direct investments, private equity, and tailored risk management, families secure both growth and control across generations.

Case Examples: Why Big Names Walked Away

High-profile conversions from hedge funds to family offices provide both proof points and warnings. Below are key examples showing what triggered the shift, what the trade-offs were, and how these precedents illustrate the broader trend.

John Paulson’s Pivot To A Family Office

In July 2020, John Paulson announced that Paulson & Co. would return all external investor capital and become a private investment office. He wrote: “After considerable reflection and careful thought, Paulson & Co. will convert into a private investment office and return all external investor capital.”

Reasons cited for the move include shrinking outside capital, employee departures, and mixed investment performance. Turning inward allowed Paulson to reduce regulatory burdens, avoid investor-relations overhead, and reclaim control over strategic investment decisions.

George Soros And The Soros Precedent

In 2011, George Soros’s firm, Soros Fund Management, formally stopped managing outside capital and became a family office. One reported estimate was that about US$1 billion of outside investor money was returned, as new U.S. rules under the Dodd-Frank Act would have increased disclosure and SEC reporting obligations.

In a letter, Soros’s sons Jonathan and Robert said that many of the regulatory exemptions the firm relied on were no longer available, making continued operation with outside investors less practical.

A Growing Trend Over The Past Decade

These moves are not isolated. An increasing number of hedge fund managers globally have chosen to return outside capital and convert into family offices. For example:

Media reporting in Nasdaq (2023) named John Paulson, Leon Cooperman, and Jonathan Jacobson among notable figures who shifted away from external investor capital.
A 2019 Business Insider interview saw Paulson estimate that roughly 75-80% of his firm’s assets were already his own, foreshadowing the conversion.

The combination of tighter regulation, fee pressure, inconsistent performance, and the administrative burden of outside capital has made the family office model increasingly attractive to those seeking legacy, privacy, and long-term wealth preservation.

These case studies show that when the costs of compliance, disclosure, and investor obligations outweigh external capital benefits, top hedge fund managers often “walk away.” John Paulson and George Soros did not merely change names; they changed incentives. Their exits offer templates that allow trustees of generational wealth to assess not just returns but also control, legacy, and simplicity.

Risks and Trade-Offs Few Managers Acknowledge

Many hedge fund principals switching to family office status focus on the benefits: privacy, lower fees, and greater control. But there are real trade-offs that few acknowledge until exposures surface.

Loss Of Scale And Deal Access

Giving up external capital often comes with losing access to scale advantages. Hedge funds enjoy preferential terms with prime brokers, research houses, and investment banks. Without that, family offices can face:

Reduced clout in sourcing large-ticket deals (private equity, pre-IPO rounds).
Diminished access to prime-broker leverage, margin financing, or discounted trading costs.
Weaker negotiating power on custody, advisory, and fund operations.

Talent And Incentives

Family offices may struggle to recruit and retain elite investment talent when compensation structures and career visibility are more limited.

A recent HSBC / Campden Wealth survey found 36% of family offices cited a lack of candidates with the right personal qualities, and 32% pointed to weak interpersonal skills as barriers.
In parallel, Botoff Consulting reported 53% of family offices intend to hire additional staff this year, but many warn that competition with hedge funds and private equity firms for talent remains fierce.

When performance fees or external incentives are removed, non-financial motivators (culture, purpose, values) become more critical, but they often do not fully compensate for lower upside or public recognition.

Track Record Limitations

Running privately may give freedom, but it also changes how performance is assessed.

Reporting standards differ: outside investors expect regular fund audits, peer-comparisons, and market disclosures. Private family office returns may lack transparency to external evaluators.
If a manager ever wants to return to outside capital, institutional investors may discount or disqualify some “private” performance. Past gains may not translate well into new fundraising.

Costs Borne Entirely By The Family

All the infrastructure, staffing, losses, and compliance costs rest fully on the family balance sheet. There is no external fee income or investor base to absorb shocks.

Family office principals must cover legal, accounting, risk, and operations costs in full.
Down periods or portfolio underperformance hit personal wealth more directly.

Regulatory Spotlight Can Return

Just because a structure claims exemption does not mean regulatory risk disappears. Extreme behavior, size, or market shocks bring regulators in.

Archegos is the example most often cited. Despite being classified as a family office, it utilized derivative instruments and concentrated its investments to amass a huge exposure. Regulators later charged its CEO with fraud and market manipulation after the company’s collapse exposed tens of billions of dollars in losses.
In U.S. law, the family office exemption is under review; the Congressional Research Service has flagged Archegos as a case illustrating that lightly regulated entities may pose systemic risk.

Converting to a family office is not risk-free. What appears to be control can sometimes mask exposure. Loss of scale, talent gaps, weaker track record, full cost burden, and regulatory risk are real. Any manager considering this path must stress-test these trade-offs, not just for performance but for legacy and continuity across generations.

Family Office Hedge Funds vs Other Structures

For wealthy families deciding how to manage assets, it is important to understand how a family office hedge fund compares with other investment structures. Each model has its own capital base, regulatory framework, and objectives. The table below summarises the main differences.

Comparison Table: How Structures Differ

Criteria	Hedge Funds	Family Office Hedge Funds	Family Offices (Single-Family)	Multi-Family Offices	Private Equity Firms
Capital Base	External investors such as institutional investors, pension funds, and high-net-worth individuals	Family’s assets only	One family’s assets only	Multiple families pool resources to share infrastructure	External investors, endowments, sovereign funds
Regulation	SEC filings, disclosures, and compliance requirements	Family office exclusion with fewer disclosure requirements	Family office exclusion under the SEC rule	The same exemption applies, but complexity rises as more families join	SEC filings, fundraising rules, and investor reporting
Fee Model	“2 and 20” (management + performance fees), under pressure in recent years	No external fees; returns accrue to family office principals and family members	No external fees; costs fully borne by the family	Shared cost model: families pay proportionate fees to cover services	Management fee plus carried interest (“2 and 20” common)
Focus	Beating market benchmarks, quarterly performance	Privacy, control, alignment with family values, and long-term goals	Governance, succession, lifestyle, and preservation of family wealth	Cost efficiency, pooled access to expertise, and basic governance	Growth in private companies, exit strategies, and capital appreciation
Services	Asset management only	Asset management, customised reporting, tailored risk management	Wide array: wealth management, philanthropy coordination, concierge services, succession planning, travel management	Standardised wealth management, reporting, and administrative services	Investments in private companies only; limited family governance

Interpreting The Differences

Capital base: Hedge funds and private equity firms depend on external capital, while family offices and family office hedge funds rely solely on the family’s assets. This reduces conflicts of interest but concentrates risk on the family balance sheet.
Regulation: Hedge funds and private equity are heavily regulated, while family office hedge funds operate under the lighter family office exclusion, avoiding most public filings. This privacy is often a primary reason for conversion.
Fee model: Hedge funds and private equity firms earn fees from outside investors, but family office structures eliminate external fees altogether. This keeps returns within the family but removes the cushion of fee income to cover costs.
Focus:Hedge funds chase benchmarks, private equity firms chase company growth, but family offices tie investments to succession planning, legacy, and family governance. Family office hedge funds sit in between, focused on performance but on the family’s terms.
Services: Only family offices offer broad lifestyle services (concierge, philanthropy, education), which underscores their role as both a financial and personal governance institution.

How the Portfolio Changes After Conversion

When hedge funds convert to family offices, portfolios often shift in detectable ways. Freed from external investors and short-term redemption pressures, they reorient toward goals of liquidity, legacy, and long-term growth. Below are key changes in allocation, strategy, and processes that commonly follow conversion.

From Quarterly Benchmarks to Asset Allocation Around Goals

Post-conversion, family office hedge funds stop chasing benchmarks every quarter and instead build asset allocations aligned with family priorities. They balance liquidity, generational growth, and legacy planning.

Survey data from the 2025 Global Family Office Survey by BlackRock found that 42% of family office portfolios are now allocated to alternative investments, up from 39% in previous years. (
A 2024 J.P. Morgan report shows averages close to 45% allocation into alternative assets (private equity, venture capital, real estate, hedge funds, etc.) among surveyed single-family offices.

This shift enables the family office hedge fund model to focus on returns that may be lower in liquidity but higher over long time horizons, making trade-offs around cash flow and valuations more deliberate.

Wider Use of Alternative Assets

Converted family office hedge funds increase exposure to alternative asset classes. These include private equity (funds and direct), private credit, venture capital, hedge funds, infrastructure, and real or real-asset investments.

In BlackRock’s 2025 survey, nearly 32% of family offices intend to increase allocation to private credit in 2025-2026. Infrastructure is similarly rising.
UBS’s data confirms this: in one report, about 31% of portfolios had allocations to private equity (11%) and private debt (6%) as part of their alternative asset mix.

These asset classes are chosen for their potential illiquidity premium and ability to generate returns outside public-market volatility. The conversion enables a family office hedge fund to accept more extended holding periods and less frequent valuation updates.

Direct Oversight of Data Aggregation and Reporting

Once external audits, investor reporting, and marketing obligations are removed, families focus inward. Reporting systems become centralised, platforms are customised, and data collection is automated.

BlackRock’s survey shows 57% of family offices identify “gaps in internal expertise around reporting, deal-sourcing, and private-market analytics,” prompting investment in platforms and outsourced partners to manage data, risk, and performance reporting.
The 2025 survey of single-family offices by BNY Wealth reports that nearly two-thirds expect to make six or more direct investments in the following year, reinforcing that direct deal tracking, performance attribution, and oversight become core capabilities.

Conversion does not just change who invests or to whom returns go. It reshapes the portfolio’s DNA: moving from benchmark-centric mandates to goal-oriented allocations, increasing reliance on alternatives, and building internal capacity for precise reporting. For wealthy families, this often means more control, greater alignment with values, and stronger foundations for long-term legacy.

Operating Model Inside a Family Office Hedge Fund

Shifting from Investor Relations to Family Office Management

When a hedge fund becomes a family office, what changes first is how it operates. Investor roadshows and LP reporting largely disappear. The focus shifts inward to document management, partnership accounting, risk controls, and family office operations. According to the 2025 Global Family Office Survey by BlackRock, more than half of family offices reported gaps in internal expertise around reporting (57%), deal-sourcing (63%), and private-market analytics (75%). These gaps often prompt investment in internal systems or external partners.

Governance and succession planning

Without outside investors, accountability becomes internal. Families formalise decision-rights, develop succession plans, and codify governance rules that reflect family values. The North America Family Office Report 2024 found that many newer offices remain “light” on formal governance, especially if wealth creation is recent and first-generation. However, mature family office hedge funds tend to establish regular meetings, documented rules, and advisory boards to ensure clarity and continuity.

Beyond investments: broader services

Many family office hedge funds go further than asset allocation and governance. They expand into lifestyle management, philanthropy, travel arrangements, and household or property services. The 2025 UBS Global Family Office Report showed that 47% of family offices provide no lifestyle management services at all, underlining that those who do are differentiating strongly. Concierge services now comprise a $850 million market, with projections of continued growth by 2033.

Future Outlook: Where the Trend is Heading

We’ve moved past speculation. The shift from hedge fund to family office hedge fund is accelerating. What follows will reshape wealth management, legacy planning, and the institutions that serve the world’s wealthiest families.

Fee Pressures Will Accelerate Conversions

The traditional “2 and 20” economics are increasingly under siege. Investors are pushing back. According to a 2025 Goldman Sachs / IG report, nearly half of hedge fund investors now favour charging performance fees only after meeting a preset hurdle rate. Costs of regulation, back-office compliance, and technology are rising. Many managers believe fee compression will leave fewer incentives to keep external capital.

In short, as performance fees decline, more hedge fund principals will see family office hedge funds as a route to preserve net returns, reduce friction, and reclaim control over their economics.

Privacy And Regulation Will Define The Next Decade

Family offices currently benefit from exemptions and fewer disclosure requirements. However, high-profile failures demonstrate that lenient regimes do not eliminate zero oversight risk. Regulators in the US and abroad are closely monitoring Archegos and similar cases, citing concerns about systemic risk.

Expectation: regulatory bodies will tighten definitions of “family office exclusions,” demand more transparency, or restrict privileges for entities with prominent exotic positions or cross-border exposure. The prize for family offices will be maintaining privacy while adapting to new rules.

AI And Automation Will Reshape Reporting And Risk Management

The future is data intelligence. Family offices are only now catching up. BNY’s 2025 survey found that 83% of family offices name artificial intelligence among the top five investment themes for the next five years. Yet only around 33% are using AI tools internally for operations, reporting or deal analysis.

What distinguishes leaders is building internal systems that automate data aggregation, consolidate portfolio reporting in real time, model stress scenarios, and enforce risk limits with minimal friction. AI will catalyse speed, precision, and foresight.

Generational Wealth And Legacy Priorities Will Drive Adoption

Families do not just want growth. They want the future. As wealth becomes multi-generational, priorities shift: how to pass on assets, values, and decision rights while preserving cohesion.

Recent surveys indicate that wealthy families are increasing their allocations to private equity, direct deals, and areas aligned with their values, such as impact investing. Families with assets over US$1 billion are more likely to invest in private companies and AI, and expect to hold assets longer.

When wealthy families realise that the cost of retaining external capital, through fees, regulation, and disclosure, is more than the marginal benefit of scale, they will lean into the family office hedge fund model. Legacy, governance, and control will become the competitive edges.

———————–

(For writer)

Statement	URL
Post-2008 regulations (esp. Dodd-Frank) made compliance far heavier; the 2011 Family Office Rule excludes true family offices from SEC registration.	https://www.sewkis.com/publications/converting-a-private-investment-fund-business-into-a-family-office-issues-to-consider/?utm_source=chatgpt.com
Hedge fund managers spend ~5–10% of operating costs on compliance; billions industry-wide post-crisis.	https://www.sec.gov/news/speech/spch032213tmn.htm
Conversion removes quarterly letters, marketing, LP due diligence, and litigation risk from outside investors.	https://www.sewkis.com/publications/converting-a-private-investment-fund-business-into-a-family-office-issues-to-consider/?utm_source=chatgpt.com
Family office model gives more privacy and strategic freedom (longer-term bets, concentrated positions).	https://www.questorg.com/why-are-hedge-funds-converting-to-family-offices/?utm_source=chatgpt.com
Fee pressure has eroded the “2 and 20”; many managers find running external money no longer worth the effort.	https://www.questorg.com/why-are-hedge-funds-converting-to-family-offices/?utm_source=chatgpt.com
Family offices integrate investing with tax, estate, and governance planning for intergenerational wealth.	https://homrichberg.com/resources/understanding-family-offices/?utm_source=chatgpt.com
John Paulson (2020) converted his hedge fund to a family office after performance and AUM decline; Soros, Cooperman, Druckenmiller, Cohen and others did the same.	https://www.reuters.com/article/us-hedgefunds-paulson-idUSKBN25M5TI
Archegos blow-up shows “family office” label can mask hedge-fund-like risk, prompting calls for oversight.	https://www.wealthbriefing.com/html/article.php/hedge-funds-that-morph-into-family-offices-_dash_-the-archegos-fallout?utm_source=chatgpt.com

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  - rent, lease, lend, sell, sublicense, assign, distribute, publish, transfer or otherwise make available the Software Platform, or any features or functionality of the Software Platform, to any Third Party (other than Authorized Users) for any reason;
  - use the Software Platform in violation of any law, regulation or rule;
  - use the Software Platform for purposes of developing or assisting a third party in developing a competing software or platform, product or service or any other purpose that is to the Company’s commercial disadvantage.
  - use the Software for purposes of competitive analysis or the development of a competing software product or service or product having the same and/or similar function as the Software Platform.
  - This Agreement does not grant the Licensee any rights whatsoever in relation to the Company’s trademarks or service marks; and
  - The Licensee shall not use the Software Platform into any country in violation of any export control laws or regulations.

Responsibility for Use of Software.

- - The Licensee is responsible and liable for all uses of the Software Platform through access thereto provided by Licensee, directly or indirectly. Specifically, and without limiting the generality of the foregoing, the Licensee shall at all times be responsible and liable for all actions and omissions of the Authorised Users. If the Company at any time determines that the Licensee’s use of the Software is in excess of the Scope then:

a. The Licensee shall, within thirty (30) days following the date of Company’s written notification thereof, pay to Company the additional License Fees for such excess use. In determining the License Fee payable pursuant to the foregoing, unless Licensee can demonstrate otherwise by documentary evidence, all previously unknown excess use of the Software shall be deemed to have commenced on the commencement date of this Agreement and the rates for such licenses shall be determined without regard to any discount to which the Licensee may have been entitled had such use been properly licensed prior to its commencement (or deemed commencement); and

b. The Company reserves the right to forthwith terminate this Agreement and initiate the legal proceedings against the Licensee for breach of terms of this Agreement and recovery of the amounts due.

- - The Licensee shall use commercially reasonable efforts to safeguard the Software Platform from infringement, replication in any form, misappropriation, theft, misuse, or unauthorized access. Licensee shall promptly notify the Company if Licensee becomes aware of any violation of Company’s Intellectual Property Rights in the Software Platform.

Support Services.

- - Subject to Clause 8.1, during the Term of this Agreement, the Company may provide basic software support services described in the pricing proposal as set out in Appendix I.
  - The Company shall have a right to stop providing support services if the Licensee and/or any of it Authorised Users:
  - breach any of the terms of this Agreement; or
  - use the Software Platform in excess or not in accordance with the Scope
  - The Company may provide updates and maintenance on the Software at its sole discretion.

Collection and Use of Information.

- - Licensee acknowledges that Company may, directly or indirectly through the services of Third Parties, collect and store information regarding use of the Software and about equipment on which the Software is used or through which it otherwise is accessed and used, through the provision of support services.
  - Licensee agrees that the Company may use such information for any purpose related to any use of the Software by Licensee or on Licensee’s equipment, including but not limited to:
  - improving the performance of the Software; and
  - verifying Licensee’s compliance with the terms of this Agreement and enforcing the Company’s rights, including all Intellectual Property Rights in and to the Software.

Confidential Information.

- - In connection with the performance of the Parties’ obligations under this Agreement, each Party may provide to the other Party, and the other Party shall have access to, the first Party’s Confidential Information. Notwithstanding any other content of this Clause 9, Licensee hereby permits the Company to use the Licensee’s name in the Company’s marketing material to the limited extent of identifying the Licensee as a customer that uses the Software Platform.

- - Each Party shall exercise due care to prevent the unauthorized use or disclosure of the other Party’s Confidential Information, and shall not, without the other Party’s prior written consent: (a) use the other Party’s Confidential Information for any purpose other than performing its obligations under this Agreement; or (b) disclose or otherwise make available, directly or indirectly, any item of the other Party’s Confidential Information to any person or entity other than those employees, independent contractors, agents or investigators of such Party and/or its affiliated entities (collectively, “Representatives“) who reasonably need to know the same in the performance of such Party’s obligations under this Agreement, or in order to make decisions or render advice in connection therewith. Each party shall protect the confidentiality of the Confidential Information of the other party with the same degree of care, as such party uses to protect its own Confidential Information, and in no event, less than reasonable care. For the convenience of the Parties, each Party acknowledges that unless precluded in writing by the other Party, Confidential Information may be transmitted to a Party and/or its Representatives via the Internet.

- - In the event of an actual or threatened breach of the above confidentiality provisions, the non-breaching Party shall have no adequate remedy at law and shall be entitled to immediate injunctive and other equitable relief, without bond and without the necessity of showing actual money damages.

Intellectual Property Rights.

Licensee acknowledges and agrees that the Software Platform is provided by the Company under a non-exclusive, non-transferable, non-sub-licensable, revocable license. The Licensee shall not have any interest in the Software Platform including but not limited to any ownership interest in the Software Platform or any other rights thereto other than to use the same in accordance with the terms of this Agreement. The Company reserves and retains its entire right, title and interest in the Software Platform and all Intellectual Property Rights arising out of or relating to the Software Platform. The Licensee shall use all efforts to safeguard the Software Platform from infringement, misappropriation, theft, misuse or unauthorized access. The Licensee shall promptly notify the Company if the Licensee becomes aware of any violation of the Company’s Intellectual Property Rights in the Software Platform and fully cooperate with the Company in any legal action taken by Company to enforce its Intellectual Property Rights. The Licensee acknowledges and agrees that the Licensee, and not the Company, shall be solely responsible for the investigation, defense, settlement and discharge of any intellectual property infringement claim or suit, or any other harm or damages resulting from Licensee’s use of or access to the Software Platform.

Term and Termination.

This Agreement and the license granted hereunder shall remain in effect for the term set forth in the order form as set out in Appendix I. The license is valid for a period of 12 months from the date of activation (“Term”) unless otherwise indicated in the order form as set out in Appendix I. This Agreement will renew automatically for another twelve month period at the expiration date (“Extended Term”) unless the Licensee provides a written notice of termination sixty (60) days prior to the date of expiry of the License.
Without prejudice to any other rights or remedies and notwithstanding anything contained in Clause 11.1 above, the Company shall have an unfettered right to terminate this Agreement at any time upon Licensee’s failure to comply with all the terms and conditions of this Agreement.
Company may terminate this Agreement, effective immediately, if the Licensee files itself, or any other Person has filed against the Licensee (and fails to obtain a dismissal within sixty (60) days thereof), a petition for voluntary or involuntary bankruptcy or pursuant to any other insolvency law, makes or seeks to make a general assignment for the benefit of its creditors or applies for, or consents to, the appointment of a trustee, receiver or custodian for a substantial part of its property.
Upon expiration or earlier termination of this Agreement, the license granted hereunder shall also terminate, and Licensee shall cease using and destroy (to the extent reasonably practicable) all copies of the Software Platform. No expiration or termination shall affect Licensee’s obligation to pay all Licensee Fees that may have become due before such expiration or termination, or entitle Licensee to any refund, in each case except as set forth in Clause 11.3.

Limited Warranties, Exclusive Remedy and Disclaimer/Warranty Disclaimer.

The Company warrants that, during the Term, the Software will substantially contain the functionality described in the Documentation, and when properly accessed and used on a computer (as per requirements specified in the Documentation) and operated in accordance with the Documentation the Software shall substantially perform in accordance therewith. However, the Company does not represent or warrant that any and/or all errors will be corrected and that any and/or all incidents will be prevented or corrected.
The warranties expressly set forth in this Clause will not apply and will become null and void (i) if Licensee breaches any provision of this Agreement, and/or (ii) if Licensee and/or any Authorized User and/or any other Person to whom access to the Software is provided , whether or not in violation of this Agreement:
uses the Software Platform on or in connection with any hardware or software not specified in the Documentation, provided that the warranties in this Section shall continue to apply to Software that is installed or used on any hardware, software, configuration or operating system in accordance with the Documentation; or
misuses the Software, including any use of the Software other than as specified in the Documentation.
During the Term of this Agreement, if the Software fails to perform substantially in accordance with the Documentation, and such failure is not excluded from warranty pursuant to Clause 12.1, the Company will, at its sole option, use commercially reasonable efforts to repair the Software, provided that Licensee provides Company with all information which the Company requests to resolve the reported failure, including sufficient information to enable the Company to recreate such failure. Provided further that, the Licensee shall within 5 days after such failure has occurred, notify in writing to the Company informing about the failure. The Licensee acknowledges and agrees that the Software Platform may produce inaccurate results because of a failure or fault within the Software Platform for reasons not attributable to the Company or failure by Licensee to properly use and/or deploy the Software Platform. The Licensee assumes full and sole responsibility for any use of the Software Platform and bears the entire risk for failures or faults within the Software Platform on account of reasons not attributable to the Company. Licensee agrees that regardless of the cause of failure or fault or the form of any claim, the Company’s obligation if any shall be governed by this Agreement. Further, the Licensee acknowledges that the remedies set forth in this Clause 12.3 are Licensee’s sole remedies and Company’s sole liability with respect to the warranties provided in this Clause 12.
The software and documentation are provided to licensee on an “as is where is” basis and with all faults and defects without warranty of any kind other than as expressly set forth in this Clause 12. The Company, on its own behalf and on behalf of its affiliates expressly disclaims all warranties, whether express, implied, statutory or otherwise, with respect to the software and documentation, including all implied warranties of merchantability, fitness for a particular purpose, and warranties that may arise out of course of dealing, course of performance, usage or trade practice. Without limitation to the foregoing, the Company provides no warranty or undertaking, and makes no representation of any kind that the licensed Software Platform will meet the Licensee’s requirements, achieve any intended results, operate without interruption, meet any performance or reliability standards or be error free or that any errors or defects can or will be corrected.
The Licensee represents and warrants that it has due authorisations to enter into this Agreement and perform its obligations. Further, the Licensee represents and warrants that its is not barred under law, contractually or otherwise to enter into this Agreement and perform its obligations.

Limitation of liability

The Company and its affiliates, shall not be liable to the Licensee or to any third party for any use, interruption, delay or inability to use the software, lost revenues or profits, delays, interruption or loss of services, business or goodwill, loss or corruption of data, loss resulting from system or system service failure, malfunction or shutdown, failure to accurately transfer, read or transmit information, failure to update or provide correct information, system incompatibility or provision of incorrect compatibility information, or breaches in system security, or for any consequential, incidental, indirect, exemplary, special or punitive damages, whether arising out of or in connection with this agreement, breach of contract, tort (including negligence) or otherwise, regardless of whether such damages were foreseeable and whether or not the Licensee was advised of the possibility of such damages.
In no event will the Company’s and its affiliates’, collective aggregate liability under or in connection with this Agreement or its subject matter, under any legal or equitable theory, including breach of contract, tort (including negligence), strict liability and otherwise, exceed the total amount paid to the Company under this agreement for immediately preceding three month period.

Export Regulation.

The Software Platform may be subject to US export control laws, including the US Export Administration Act and its associated regulations. The Licensee shall not, directly or indirectly, export, re-export or release the Software Platform to, or make the Software Platform accessible from, any jurisdiction or country to which export, re-export or release is prohibited by law, rule or regulation. The Licensee shall comply with all applicable federal laws, regulations and rules, and complete all required undertakings (including obtaining any necessary export license or other governmental approval), prior to exporting, re-exporting, releasing or otherwise making the Software Platform available outside the US.

Indemnification

Licensee hereby agrees to indemnify the Company and its officers, directors, employees, agents, and representatives (“Indemnified Person”) from each and every demand, claim, loss, liability, or damage of any kind, including actual attorney’s/legal fees, whether in tort or contract, that may incur by reason of, or arising out of, any claim which is made by either the Licensee and/or any third party against the Indemnified Person with respect to any breach or violation of this Agreement by the Licensee or any claims based on Licensee’s and/or its client’s use of the Software Platform.

Miscellaneous.

Governing Law: This Agreement is governed by and construed in accordance with the internal laws of United States of America without giving effect to any choice or conflict of law provision or rule that would require or permit the application of the laws of any other jurisdiction. Any disputes arising from or related to this Agreement or any Company Software or service shall be subject to the exclusive jurisdiction and venue of the courts situated in New York, and both Parties hereby consent to such jurisdiction and venue.
Force Majeure: The Company will not be responsible or liable to the Licensee, or deemed in default or breach hereunder by reason of any failure or delay in the performance of its obligations hereunder where such failure or delay is lockdowns, due to strikes, labor disputes, civil disturbances, riot, rebellion, invasion, pandemic, epidemic, hostilities, war, terrorist attack, embargo, natural disaster, acts of God, flood, fire, sabotage, fluctuations or non-availability of electrical power, heat, light, air conditioning or any other circumstances caused beyond the Company’s reasonable control (“Force Majeure Event”). It is hereby clarified that the Licensee’s payment obligation shall continue during the Force Majeure Event.
Notices: All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by e-mail (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid.
Entire Agreement: The terms and conditions of this Agreement, including its exhibits, constitutes the entire agreement between the parties with respect to the subject matter hereof, and merges and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions. Neither of the parties shall be bound by any conditions, definitions, warranties, understandings, or representations with respect to the subject matter hereof other than as expressly provided herein. The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. No oral explanation or oral information by either party hereto shall alter the meaning or interpretation of this Agreement. No amendments or modifications shall be effective unless in a writing signed by authorized representatives of both parties. These terms and conditions will prevail notwithstanding any different, conflicting or additional terms and conditions which may appear on any purchase order, acknowledgment or other writing not expressly incorporated into this Agreement.
Assignment:

a. Licensee shall not assign or otherwise transfer any of its rights, or delegate or otherwise transfer any of its obligations or performance, under this Agreement, in each case whether voluntarily, involuntarily, by operation of law or otherwise, without Company’s prior written consent, which consent Company may give or withhold in its sole discretion. For purposes of the preceding sentence, and without limiting its generality, any merger, consolidation or reorganization involving Licensee (regardless of whether Licensee is a surviving or disappearing entity) will be deemed to be a transfer of rights, obligations or performance under this Agreement for which Company’s prior written consent is required. No delegation or other transfer will relieve Licensee of any of its obligations or performance under this Agreement. Any purported assignment, delegation or transfer in violation of this Clause 16.5 is void. The Company may assign or otherwise transfer all or any of its rights, or delegate or otherwise transfer all or any of its obligations or performance, under this Agreement without Licensee’s consent. This Agreement is binding upon and inures to the benefit of the parties hereto and their respective permitted successors and assigns.

b. This Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer on any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

Amendment and Waiver: This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. Failure or neglect by the Company to enforce at any time any of the provisions hereof shall not be construed nor shall be deemed to be a waiver of the Company’s rights hereunder nor in any way affect the validity of the whole or any part of this License nor prejudice the Company’s rights to take subsequent action.
Reservation of Rights and Remedies: The Company reserves all of its rights to proceed to enforce its rights in connection with all rights not expressly granted to the Licensee in this Agreement.
Severability: If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision shall to that extent be severed from the remaining terms, conditions and provisions which shall continue to be valid to the fullest extent permitted by law.
Interpretation: For purposes of this Agreement, (a) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Sections and Exhibits refer to the Sections of, and Exhibits attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The headings in this Agreement are for reference only and do not affect the interpretation of this Agreement.
Independent Development: This Agreement does not preclude the Company from evaluating, acquiring from third parties not a party to this Agreement, independently developing or marketing similar technologies or products, or making and entering into similar arrangements with other companies. The Company is not restricted by this Agreement to make such products or technologies available to third parties.
Disclaimer: The Software Platform is subject to the Disclaimer set out in the Appendix V of this Agreement.

Appendix IV : Privacy Policy

The Customer can access the privacy policy of the Company at the following link: Privacy Policy

Appendix V: Disclaimer

All of the operating procedures with respect to the Software Platform have been designed based on the Company’s experience in working with hundreds of global family offices. Under no circumstances should any person using the Software Platform should make investment decisions based solely on the information setout therein. The Company is not a qualified financial advisor and the Licensee should not construe any information discussed herein to constitute investment advice. The information in the Software Platform is not meant to be, and should not be construed as advice or used for investment, financial planning, legal, accounting, or tax purposes. The Licensee agrees to consult with a registered investment advisor, which the Company is not, prior to making any investment/trading decision of any kind. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. It must be implemented as per individual family office requirements in consultation with the family office’s local accounting and legal professionals.
The Software Platform is based upon information that is relevant while making investment decisions and the Company considers it reliable, but the Company does not represent that it is accurate or complete, and that it should be relied upon, as such. The Licensee should not rely solely on the information in making any investment. Rather, the Licensee should use the information only as a starting point for doing additional independent research in order to allow the Licensee to form its own opinion regarding investments. All recommendations, advice or opinions cited are the professional views of the Company. The Licensee must act upon them with due diligence.
The Company is neither registered as a wealth advisor, wealth manager, investment advisor nor soliciting any investment in any jurisdiction. Further, the Company does not accept any responsibility or liability for the actions or inactions on the part of any individual or firm stemming from the information mentioned in the Software Platform. The Licensee is solely responsible for verifying the information as being appropriate for the Licensee’s use, including without limitation, seeking the advice of a qualified professional regarding any specific financial, legal, accounting, or tax questions that the Licensee may have.
The Company makes no warranties and gives no assurances regarding the truth, timeliness, reliability, or good faith of any material/factual data in the Software Platform. The Company does not warrant that investment/trading methods or systems presented in the manual will result in profits or losses. The Company makes no guarantees as to the accurateness, quality, or completeness of the information and the Company shall not be responsible or liable for any errors, omissions, inaccuracies in the information or for Licensee’s reliance on the information Vis-à-vis the Software Platform.