Platform Architecture
The LFPT functions as the operational hub. Each entity retains its own strategic identity and profit-and-loss responsibility, while relying on the LFPT for all shared infrastructure and services.
Governance Framework
The LFPT operates under a clear governance structure that ensures alignment, accountability, and strategic coherence across the entire group.
Family Board
Provides strategic direction, approves annual budgets and major capital allocations, appoints executive leadership, and sets the overall vision for the group. Meets quarterly.
Operating Committee
Cross-entity leadership team that coordinates shared initiatives, resolves inter-entity dependencies, and ensures the LFPT's service delivery meets the needs of each entity.
Entity Boards
Each operating entity maintains its own board with entity-specific fiduciary responsibilities, P&L oversight, and strategic authority within the group framework.
LFPT Management
Professional management team responsible for day-to-day operations of the shared platform — service delivery, vendor management, technology infrastructure, and team leadership.
Key Structural Principles
- Single cost center. The LFPT is funded as a direct expense allocation to each entity based on usage, headcount, or equitable formula — never as a profit center.
- Entity autonomy. Each entity retains full operational control over its core business activities. The LFPT provides infrastructure, not strategic control.
- Uniform standards. Every entity operates under the same HR policies, financial controls, compliance frameworks, and technology platforms — ensuring consistency and reducing risk.
- Scalable capacity. The LFPT's service model is designed to scale — adding a new entity requires marginal incremental cost rather than building a new back office from scratch.
- Institutional memory. Centralizing operations ensures that processes, documentation, and knowledge accumulate within the LFPT rather than fragmenting across entities.
Service Delivery Model
The LFPT delivers services through three tiers:
- Tier 1 — Core Shared Services. HR, finance, IT, and legal. Delivered uniformly to all entities. No opt-out, no duplication. These functions are the backbone of the platform.
- Tier 2 — Discretionary Services. Marketing, fractional CXO, data analytics, and strategic projects. Available to all entities with usage-based allocation. Entities may scale up or down based on need.
- Tier 3 — Bespoke Services. Entity-specific projects, M&A support, special situations, and ad-hoc strategic work. Delivered by LFPT teams on a project basis with clear scope and cost allocation.
Cost Allocation
The LFPT's operating costs — including salaries, benefits, technology, facilities, and professional fees — are allocated across entities using a transparent formula based on:
- Entity headcount (for HR, IT, and administrative services)
- Entity revenue or AUM (for finance, legal, and executive services)
- Direct usage (for marketing, project work, and fractional CXO time)
This model ensures that each entity pays proportionally for the services it consumes while benefiting from the collective purchasing power and operational leverage of the entire group.