Financial Markets Crisis Impacts All Classes, Redefining Relationship between Families and Generational Wealth

More Rigorous Due Diligence Critical for Selecting Advisors to Assure "Bridge of
Trust" Objectivity and Transparency
JENKINTOWN, Pa.--(Business Wire)--
The financial markets crisis now roiling the global economy has cut across all
classes, significantly impacting wealthy families and fortunes sustained over
generations, says Dirk Jungé, chairman and chief executive officer of Pitcairn,
a leading multi-family office (MFO).

According to Jungé, the complexities of today`s stressed global economy have
created unprecedented problems--particularly for those advisors serving ultra
high net worth families or single family offices (SFO). "Skillfully and
discretely managing the many options in today`s unpredictable investment
environment," he holds, "as well as the unique relationship between affluent
families and great wealth, remain the central challenges to sustaining that
wealth over the long-term horizon."

Jungé adds that helping a broad range of families meet this challenge during a
period of seismic upheaval like the present is the special role of the MFO.
"Because of the substantial assets involved, the need for long experience in
many market environments, coupled with objectivity and transparency in every
aspect of a family`s wealth structure, cannot be over-emphasized. It is
incumbent upon the MFO industry today to provide a `bridge of trust` to meet the
very specific requirements of its client families."

The Pitcairn CEO cites another emerging trend as investors move away from what
had become a myopic-like focus on investment returns. "Rather," he says, "they
are taking a much more sober attitude towards risk; realizing that additional
risks may now exist where not previously anticipated."

Jungé explains that due diligence of investment managers, once perceived as
perfunctory by some investors, is now recognized for the critical risk
management essential it is. "The impact from the Lehman Brothers, Madoff,
Stanford and many other debacles has touched families around the world. Many
still do not know where to turn, having lost confidence in institutions and
`trusted advisors.` True due diligence is a disciplined, ongoing process of
evaluating areas of opportunity and risk, and gets behind the well-crafted sales
pitch and expensive suits," notes Jungé. "Due diligence is the right course for
any investor."

Leslie C. Voth, president and chief operating officer of Pitcairn, points out
that this change first manifest itself in what she termed "decision paralysis."
She sees family systems as stressed. "They are looking for alternative sources.
Approximately half of the family office client prospects with whom our firm met
during 2008 responded to the market angst by postponing strategic decisions.
That trend is now beginning to reverse. Over the past six months as the markets
have begun to settle somewhat, we are experiencing a steady increase in the
number of conversations with trusted advisors and prospective families seeking
change."

Pitcairn is also hearing from many SFOs seeking counsel on issues that range
from strategic planning to more cost-effective management techniques. A leading
industry group, Family Wealth Alliance, recently published results of a survey
that found the three biggest challenges facing the typical SFO are: Family
office sustainability, turmoil in the financial markets, and effective long-term
human resources capabilities. Voth sees this trend continuing for the
foreseeable future.

About Pitcairn

Pitcairn is one of the world`s preeminent multi-family offices, dedicated to
helping families sustain and grow their substantial, often complex financial
assets and supporting the unique heritage of its clients across multiple
generations. Pitcairn has been recognized as an innovator and leader in the
multi-family office industry since its inception as a family office in 1923.
Today, Pitcairn continues to redefine the family office experience for
generations of the world`s wealthiest families.

Pitcairn
Ronna J. Gyllenhaal, 215-881-6148
r.gyllenhaal@pitcairn.com
or
The Dilenschneider Group
Fred Bona, 973-331-9850
Bona888NJ@aol.com

Copyright Business Wire 2009