The Windmill Family Office's resources extend beyond Financial Capital.
WFO holds significant assets that are not ordinarily represented on a balance sheet, including the forms of Capital described within the Office's Six Capitals framework. These are institutional resources that can be deployed commercially, philanthropically, culturally or developmentally.
Where appropriate, WFO may deploy senior institutional capability, Governance experience, specialist Knowledge, Intellectual Capital, relationships and other family capability. These may be contributed alongside direct financial investment or defined Balance Sheet Support, as part of a wider collaborative contribution, or independently where the capability itself represents the Office's contribution.
The nature and level of capability deployed are matched to the responsibilities, complexity and Risk of the particular engagement.
HOW CAPABILITY MAY BE DEPLOYED
WFO need not require every institutional relationship to involve financial investment.
Depending upon the Purpose and circumstances, the Office may contribute one or more of:
- senior executive, board, Governance or programme capability;
- specialist Knowledge and Intellectual Capital;
- institutional and professional relationships;
- family Governance and stewardship capability; and
- combinations of these resources.
Capability may accompany investment, a defined Balance Sheet Support arrangement, a consortium contribution or a capability-only relationship.
SENIOR INSTITUTIONAL CAPABILITY
Where a transaction, investment, project, programme or institutional relationship would benefit from senior executive, board, Governance or programme capability, WFO may consider deployment of the Principal.
At present, the Office's family capability at listed-company, major corporate and complex-programme level is principally provided by the Principal. His experience encompasses executive leadership, major corporate and public-sector transformation, complex programmes, turnaround, Governance and board responsibility.
Such capability may be contributed alongside direct financial investment or defined Balance Sheet Support, as part of a wider institutional or consortium contribution, or independently where specialist expertise and senior institutional capability constitute WFO's principal contribution.
Participation is selective and is structured according to the requirements, responsibilities, conflicts, Risks and prospective Value of the particular engagement.
FAMILY CAPABILITY & DEVELOPMENT
Family membership does not itself establish capability. Responsibility is matched to demonstrated experience, judgement, complexity and Risk.
The Director of Investment & Stewardship / Principal-Designate is already deployable into substantive professional, Non-Executive Director, Trustee, investment, stewardship and Governance roles where the responsibilities are appropriate and do not conflict with his existing professional or other interests.
Such appointments may simultaneously contribute useful capability to the receiving institution and broaden the experience required of a future Principal.
Other succeeding-generation appointments may begin at a different level and develop progressively according to demonstrated capability, experience and the responsibilities and Risks involved.
Suitable participation with cultural, charitable, educational and other institutions can provide opportunities to develop practical experience of Governance, stewardship and institutional responsibility.
Development does not imply nominal appointment. Responsibility should remain genuine and proportionate to demonstrated capability.
The intended progression is from exposure and participation towards responsibility, Governance and stewardship, with greater responsibility following demonstrated capability rather than family status alone.
As families become geographically dispersed, informal transmission of history, judgement and institutional memory becomes less reliable. WFO therefore treats deliberate intergenerational exposure to family history, values, responsibilities and stewardship practices as part of continuity planning rather than assuming that such Knowledge will pass automatically between generations.
INTELLECTUAL & RELATIONSHIP CAPITAL
Some of the resources available to WFO arise from accumulated Knowledge, experience and relationships rather than financial ownership.
Depending upon circumstances, the Office may contribute specialist Knowledge, analytical capability, institutional experience, proprietary methods, professional relationships and access to relevant networks.
These resources are not assumed to possess Value merely because they exist. Their deployment should have a discernible Purpose and be capable of improving the prospective Outcome.
WFO does not ordinarily disclose proprietary methodologies or confidential professional relationships merely to demonstrate their existence.
COMMERCIAL & INVESTMENT DEPLOYMENT
Commercial or investment deployment may arise where:
- an enterprise requires senior Governance or executive capability alongside Capital;
- an investment would benefit from specialist analysis or operating experience;
- a portfolio company requires transformation, turnaround or senior Intervention;
- a transaction requires Governance or programme capability during acquisition, transition or integration; or
- a consortium benefits from complementary rather than identical resources.
Non-financial capability may complement, but is accounted for separately from, direct financial investment and Balance Sheet Support.
PHILANTHROPIC & CULTURAL DEPLOYMENT
Not every deployment of family capability is commercial.
Members of the family may contribute time, judgement and Governance support to suitable charitable, cultural, educational and other institutions where their experience is appropriate to the responsibilities involved.
Such participation may also form part of the Office's approach to developing the Governance experience and stewardship capability of succeeding generations.
Museums, cultural institutions, foundations, charities and arts organisations may, for example, provide environments in which appropriately experienced family members can make a useful contribution while developing broader institutional understanding.
The same principle of proportionality applies: the individual, responsibility and institutional Risk must be appropriately matched.
COLLABORATIVE DEPLOYMENT
WFO may participate in collaborative relationships through different combinations of Financial Capital, Balance Sheet Support, senior or specialist capability, or capability-only contribution.
Financial components remain subject to Investment Criteria and Investment Governance.
Institution-to-institution and consortium approaches should be made directly to the Principal.
GOVERNANCE & RESPONSIBILITY
Any deployment of capability is considered against competence, Purpose, Authority and Accountability; time and duration; fiduciary, legal and professional duties; conflicts; institutional and reputational Risk; opportunity cost; and developmental Value.
Availability does not create an obligation to participate. Authority to act must remain explicit and the responsibility accepted must be proportionate to capability.
INVESTMENT CRITERIA
Where an opportunity involves direct financial investment, co-investment, property or real assets, defined guarantee or other Balance Sheet Support, the applicable financial parameters and Governance requirements are set out separately.
The distinction is deliberate:
Investment Criteria describes where and on what basis WFO may deploy Financial and balance-sheet Capital.
Deployable Capability describes the non-financial institutional resources WFO may contribute, either in conjunction with financial participation or independently.
These capabilities identify resources WFO may consider deploying. They do not constitute an offer or commitment to provide executive, board, advisory, professional or financial services. WFO does not provide regulated investment advice or hold itself out as a public professional-services provider.