J.P. Morgan Private Bank’s teams work with individuals and families across Latin America to grow and manage their wealth. Set up a family office. Transition a business from one generation to another. Start a family foundation. And much more.

The situation

After decades of business success, the Hernandez* family found itself at a turning point.

Over the past four decades, Carlos Hernandez, now in his sixties, built a prosperous company—a chain of Colombian department stores. His daughter Elena, an executive at the company, had started the process of taking over her father’s leadership responsibilities. The family’s eldest son, Arturo, a prominent lawyer, had been shifting his practice towards social issues. He dreamed of launching a family foundation focused on promoting clean drinking water for rural Colombian towns.

Meanwhile, Carlos’ second son, Diego, had recently graduated from college with a degree in finance. Diego believed that in order to expand the family’s opportunities and gain greater exposure to U.S. and global markets, it was time to set up a family office.

The Hernandez family had the resources to do so, but had never worked with a private bank or a U.S.-based financial services institution. Diego reached out to J.P. Morgan to set up a consultation with a Latin America-based advisor to find out how the Private Bank could help.

The approach

After meeting with a J.P. Morgan advisor, Diego learned that not only could the Private Bank help him set up a family office, they could also work with his father, sister and brother to meet the family’s broader business and financial goals.

Setting up a family office

J.P. Morgan helped the Hernandez’s set up the family office. First, by helping the family decide what type of family office structure met their needs. The family wanted an option with the maximum amount of control, transparency and privacy, as well as a high level of customization. They chose to staff and operate a dedicated single family office and began discussions with J.P. Morgan’s Global Investment Opportunities Group to develop an investment platform.

Planning for business succession

J.P. Morgan worked with the family to transfer oversight, and eventually partial ownership, of the family’s company from father to daughter. Business succession specialists helped Elena articulate her vision for the company’s future, and assisted the family in creating a plan for a gradual succession that included Carlos’ participation in the initial phases. The firm also connected them with specialized lawyers to assist with the legal and tax side of the process.

Creating a family foundation

J.P. Morgan assisted Arturo in establishing a private family foundation focused on clean drinking water. Advisors helped him determine the initial investment to launch the project and the best ways to transfer assets for tax efficiency. The firm brought the whole family into the process, inviting them to contribute to the foundation’s mission statement and to serve in advisory roles. Lastly, the Private Bank’s philanthropy specialist connected Arturo with like-minded philanthropists and fundraising networks throughout Latin America.

* Names and details have been changed to protect our clients’ identities