Erstgespräch
An impressive achievement: At the Worldwide Finance Awards organized by financial magazine Acquisition International, the Vienna-based multi-family office KRONOS Advisory was named “Asset Structuring Specialist of the Year 2023” – thus honoring a financial services provider that has achieved outstanding achievements on a global level. And this in a challenging environment of fierce competition, rampant inflation, and declining economic power, emphasizes Acquisition International. For this reason alone, the recognition of KRONOS Advisory’s achievements in asset structuring is highly valued – and it is not the only award the company has received: The highly renowned US business platform “The Silicon Review” selected KRONOS as one of its “50 Most Admired Companies.”
Split costs
KRONOS Advisory’s business model is based on the concept of family offices, which originated in the United States in the 19th century. The famous Rockefeller family was one of the first to establish such an office to manage their wealth. The success of the concept soon spread to other countries, and today this form of wealth management has also proven successful in Europe.
In addition to preserving assets, other financial and administrative tasks are also part of the services – such as tax and estate planning, as well as donations. A family office is therefore ideally a reliable partner for wealthy families.
However, there is a high barrier to entry: Such a customized service is not profitable for assets under €250 million.
This is precisely where Sven E. Rischko comes in. After selling his successful asset management business to a listed company in 2009, he founded the multi-family office KRONOS Advisory. His goal: to make the many advantages of a family office accessible to smaller assets as well.
To optimally serve this target group, services such as asset allocation and the selection and monitoring of capital market providers are carried out for several investors at once. The costs are borne proportionally by the clients – hence the name multi-family office. Since then, families, private individuals, foundations, and companies with assets of at least three million euros and a maximum of 250 million euros have been in good hands with KRONOS Advisory – and they benefit quickly: Often, just one call from KRONOS Advisory is enough to reduce the costs of banks and asset managers by 30 to 60 percent.
“That’s our goal,” explains Sven E. Rischko confidently. “We only propose a collaboration to potential clients if, after analyzing the current situation, we are certain that our costs are lower than the added value we generate for the investor.”
Best possible conditions
Rischko’s idea quickly gained traction. In addition to the headquarters in Vienna, a branch office has now been opened in Linz.
The secret of its success: “We help asset owners achieve their financial goals without offering our own products or managing assets, and we have no interest in commissions,” explains Sven E. Rischko. Fees are transparent, and clients are billed either based on hourly rates or agreed-upon flat rates. “We do not accept commissions, kickbacks, or other incentives that could compromise our commitment to securing the best possible terms from providers,” he adds.
Based on a future strategy, the most efficient providers are sought out and scrutinized in a rigorous selection process. The final decision is then made by the client. KRONOS Advisory remains impartial and pays attention to the long-term protection of its clients’ assets.
However, KRONOS Advisory’s range of services is broader: risk management, family consulting, corporate governance, and real estate management are also provided upon client request. Another key component is asset structuring, for which KRONOS Advisory recently received the coveted award from Acquisition International. This allows investments, taxes, and inheritance matters to be precisely planned, risks minimized, and the transfer of assets facilitated.
The team is also crucial to KRONOS Advisory’s success, as Sven E. Rischko emphasizes: “Our client advisors have a combined total of around 200 years of experience in private banking and financial advisory.”
It is important to understand that the focus is solely on the investor’s interests; there are no constraints imposed by institutional requirements or sales targets. Furthermore, the partners of KRONOS Advisory are themselves successful entrepreneurs and investors and, in addition to capital market expertise, offer expertise in investments, real estate, tax structures, and other fundamental wealth management issues.
The Vienna-based multi-family office KRONOS Advisory, founded in 2009, was recognized for its expertise in asset structuring at the Worldwide Finance Awards by Acquisition International.
Text: Robert Prazak