Renowned multi-family office KRONOS Advisory has a century-long history of offering investors objective assistance. They provide an extensive range of services, including wealth structuring, risk management, family counseling, real estate knowledge, and more. They specialize in the careful selection of asset managers and the thorough monitoring of those managers. KRONOS advice is dedicated to providing clients with sustainable wealth protection and optimization. It is a leader in the financial advice industry.

KRONOS Advisory GmbH's founder and managing director, Sven E. Rischko, discussed in an exclusive interview with The Business Fortune how his organization provides a centralized approach to handling financial matters with an emphasis on preserving the family's legacy and the riches of future generations.

Interview Highlights

Could you please elaborate on the conditions or incidents that resulted in the establishment of KRONOS Advisory GmbH?    

2009 saw me successfully sell my business to a publicly traded firm after more than 20 years of working as an independent entrepreneur and financial counselor. I was too young to retire at that moment, being 38 years old. I therefore gave it a lot of thought as to what I wanted to accomplish and how I could actually create value for clients.

The truth is that asset managers and investment advisors naturally look out for their own interests in addition to those of their customers. These interests may include, but are not limited to, commissions, service margins in general, and organizational requirements. I came up with the idea of opening up the benefits of a single-family office, which typically cater to assets of at least €250 million, to asset owners with holdings ranging from €3 million to less than €250 million because I had the necessary specialized knowledge from my previous job and I knew some single-family offices and how they operate very well. As a result, the multi-family office KRONOS Advisory GmbH was established in Vienna.

Unexpected events occur in every expanding company. Tell us about some of the challenges and lessons learned that KRONOS overcame to become stronger over time.

Undoubtedly, there were obstacles. We have encountered difficulties in acquisitions, despite our corporate philosophy dictating that we only suggest cooperation if, after assessing the current circumstances, we are positive that our costs are less than the added value for the investor - attained through appropriate expense reductions in investments and a more targeted overall asset structure. Furthermore, we found that long-standing advisors or investor representatives frequently got kickback commissions from service providers, which caused the asset holder to perceive our services negatively.

We carried out due research, which included assessments by attorneys and tax consultants, but we were also impacted by an investment options provider fraud case. These experiences taught us the value of: A) making investments in network growth; B) providing asset holders' representatives with a disclosed commission share in our fees; and C) making sure that we either take the lead or maintain appropriate control in alternative investments, like real estate.

Would you please introduce your services to us? What are their key features?

In a nutshell, we help asset owners achieve their financial goals without being involved in asset management or exclusive product offerings, and we don't have any interest in commissions. Our charges are clear and are based on either agreed-upon fixed costs or hourly rates for the customer. We do not accept commissions, kickbacks, or any other forms of payment that would jeopardize our efforts to negotiate the best terms with suppliers. Any costs incurred in excess of optimal or marginal costs are only tied to sales and serve to support the provider's bottom line while unnecessarily diminishing investor profits.

For example, we wonder why bank asset managers continue to select more expensive retail tranches when institutional share classes in investment funds are readily available. After carefully examining the investor's situation, objectives, and preferences, we create a customized strategic asset allocation that isn't dependent on any particular providers or goods. This usually includes asset classes such as firm shares, real estate, renewable energy, art, and precious stones, among others, that go beyond conventional investing.

After the investor gives his or her approval to the strategic asset allocation, we put out tenders to find the best offers for specific parts. We may have a reputation as a demanding partner among providers, especially in German-speaking nations, because of our extensive approach and level of knowledge. But we're proud of this reputation because helping investors comes before winning popularity contests with product providers.

Could you share one or two success stories with us that highlight the difficulties your clients encountered and how KRONOS assisted them in overcoming them?

Especially noteworthy is the customer example that follows:

The majority of the pertinent banks are advised by one of the top four international management consulting firms, which stands out in particular for its superior knowledge and strong connections with the boards of directors of the banks. One of the biggest asset managers in the world oversees the operation of this management consultant's own pension fund for partners and managers. We had the chance to evaluate the fund and its circumstances, and we saw substantial optimization possibilities right away. As the new consultant, we made one phone call to the asset management and immediately received a fee decrease of more than 35 percent upon our commission. With great pleasure, I provide this sample.

Describe the KRONOS squad for us. What benefit do they offer the business?

I've never wanted a better team than ours. The combined experience of all of our customer advisers in private banking and financial guidance is close to 200 years. Every member is motivated by the knowledge that, free from institutional requirements or sales quotas, their only concern is the interests of the investor. Furthermore, the majority of our company's management and stockholders are accomplished businesspeople or investors. They offer not only capital market competence but also invaluable information and proven track records in real estate, tax structures, company investments, and more.

What new projects is KRONOS working on right now?   

We are currently creating specialized services intended for individuals that experience high revenues within a relatively short term, such as professional sports. Additionally, we are planning on establishing further subsidiaries offering specialized services for expats, diplomats, and more. We will be sharing some great news in the upcoming months, so stay tuned.

Sven Rischko | Founder & Managing Director

Since 1998, Sven Rischko has been an entrepreneur in the financial business and serves as the CEO of KRONOS Advisory GmbH. He was a founding partner and board member of a financial holding firm before starting KRONOS Advisory GmbH. The company was later bought by a publicly traded corporation in 2009.

Along with KRONOS, Mr. Rischko is a serial entrepreneur with a broad portfolio of investments in businesses across multiple industries and regions, from East African logistics to real estate.

"We have no vested interest in commissions, and we help asset owners achieve their financial goals without engaging in proprietary product offerings or asset management."