FAMILY OFFICE SERVICES
Family offices are private wealth management advisory firms that serve ultra-high-net-worth individuals (HNWI). They are different from traditional wealth management shops in that they offer a total outsourced solution to managing the financial and investment side of an affluent individual or family. For example, many family offices offer budgeting, insurance, charitable giving, wealth transfer, and tax services.
KEY TAKEAWAYS
- Family offices provide a broad spectrum of private wealth management services to one or a small number of ultra-high-net-worth families.
- Besides financial services, family offices also offer planning, charitable giving advice, concierge, and other comprehensive services.
- Single-family offices serve one individual and their family, while multi-family offices serve a few families benefiting from economies of scale.
Understanding Family Offices
A family office provides a wide range of services tailored to meet the needs of HNWIs. From investment management to charitable giving advice, family offices may offer a dedicated team of specialists to service these clients.
Family-run businesses may require structures for succession planning, such as setting up trusts or a foundation for the family assets. Given the complexity of these situations, clients may utilize a family office to help manage the assets and align interests. The family office can also handle non-financial issues, such as private schooling, travel arrangements, and miscellaneous household arrangements.
Family offices are typically either defined as single-family offices or multi-family offices (MFOs). Single-family offices serve just one ultra-affluent family, whereas MFOs are more closely related to traditional private wealth management practices, seeking to build their business upon serving many clients. MFOs are more prevalent due to economies of scale that allow for cost sharing among the clientele.