From startup to legacy: how the new generation of private clients can preserve and grow wealth

In today’s fast-paced global environment, wealth is being created faster than ever, especially among entrepreneurial, first-generation wealth creators. With more than 580 million entrepreneurs worldwide, many clients now have entrepreneurial backgrounds. 

In our 2024 article Advising the New Generation of Private Clients, we explored the key events, lifestyles and interests that shape the lives of high net worth individuals. 

This article looks beyond wealth creation to what comes next: preserving and growing wealth over the long term.  

From the first spark of a startup idea to the foundations of a multigenerational legacy, the path is complex and best supported by astute planning, sound structuring and trusted advisers. 

Investing in education 

When someone experiences rapid wealth accumulation, for example, after a successful exit, robust financial literacy becomes essential. Entrepreneurs often feel unprepared for the complexities of managing significant assets, especially if their expertise primarily lies in business innovation rather than personal finance. Understanding investment fundamentals, tax planning, risk management, and wealth preservation strategies is critical to making informed decisions that protect and grow wealth.  

Wealth holders who develop these skills early are far more likely to succeed in preserving, enhancing and wisely deploying their capital. Advisers increasingly provide tailored education programs for this reason; many also use investment psychology tools where appropriate. With a clear understanding of a client's talents, background and goals, advisers can educate and inform clients on important aspects to consider, ensuring these are relevant to both their stage in life and business journey. Education should also cover wider influences and risks that could affect long-term success. Building financial knowledge is the first step, protecting one’s reputation is the next. 

Managing reputation in a digital age 

Today, reputational capital can be just as valuable as financial capital. For public-facing entrepreneurs, digital footprints can shape long-term success – or create unexpected risk. Advisers now take a more holistic view of the risks that could affect clients, including digital risks from social media and an increased political and social cancel culture. It is common for specialist advisers to work with clients to: 

• monitor and curate online presence 
• understand the risks of oversharing on social platforms 
• plan for reputation management in crisis scenarios  

This is especially critical when succession or liquidity events are imminent. The narrative around a family or individual can shape investor confidence, talent attraction, and even regulatory scrutiny.  Reputational capital is now a core part of wealth preservation.  

Thinking like an entrepreneur 

Emotions, biases and cognitive behaviour can impact an individual's investment decisions. While emotion can cloud judgement, for many entrepreneurs and wealth creators, it has also driven their success.   

If passion influences investment and spending decisions, it’s no surprise that this results in the purchase of passion assets, or investments in passion projects. Aircraft, cars, yachts and art are just some of the assets commonly purchased by high net worth individuals. While these purchases are exciting and can come up unexpectedly, it is important to consider ‘how’ they are purchased, held and maintained. Guernsey is a well-known jurisdiction for the registration and safekeeping of luxury assets, with advisers well equipped to assist. 

Assembling the right team 

Building an inner circle early helps entrepreneurs delegate effectively, avoid blind spots, and focus on their strategic vision. It also ensures continuity and resilience in times of transition or global uncertainty.   

Legal and tax advisers, investment managers, family governance specialists, trustees, fiduciaries and even communication advisers all play an important role in preserving and enhancing wealth.  Establishing a team early helps as they will have a real understanding of the client, their needs, their background, and where they are headed. 

For some clients, a family office will work best, where employees are engaged to look after different aspects of a client's personal and business affairs. The family office's role can develop as the needs of the client and their family develop. 

Guernsey has a strong reputation for high-quality services, from legal and accounting to private banking and investment management and remains a popular location for single and multi-family offices. 

Structures that suit you – now and long term 

As wealth matures from startup equity into diverse global assets, so must the structures that hold it. At the heart of lasting wealth preservation is a framework that balances flexibility for growth, protection from volatility and clarity around governance and succession. 

Guernsey’s legislative framework allows for specialist wealth structuring, including: 

• trusts 
• foundations 
• companies and partnerships (limited partnerships and LLPs) 
• investment funds 

With four decades of experience supporting high net worth families, the island offers a well-regulated yet responsive environment for long-term planning.  

Recent updates to Guernsey's private investment funds regime offer a flexible, efficient framework for families and entrepreneurs to pool their capital and invest together, combining a simplified regulatory approach with robust governance and investor protection. 

For first-generation entrepreneurs and wealth creators looking to future-proof their success, Guernsey offers: 

• political and fiscal stability 
• a mature, robust legal framework 
• deep expertise in private wealth and fiduciary services 
• commitment to sustainability and innovation 

Guernsey is home to a successful network of advisers who understand the nuances of scaling wealth internationally, navigating cross-border compliance and supporting the personal and business ambitions of wealth holders at every stage. 

From spark to stewardship 

Entrepreneurial success begins with a single idea, but legacy takes long-term vision and planning. The earlier you start and the sooner you surround yourself with trusted advisers working with you on your long-term goals, the more impactful and long-lasting your legacy will be. 

How Ogier can help

Our Private Wealth team in Guernsey advises entrepreneurs, founders and families on how to protect, grow and transfer wealth across generations. We create tailored structures that reflect each client’s ambitions and circumstances, including trusts, foundations, companies, partnerships and private investment funds. Known for our pragmatic and responsive approach, we combine technical expertise with a strong understanding of the entrepreneurial mindset, helping clients preserve their success and plan confidently for the future. 

About Ogier

Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.

Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice