What Is a Family Office?
A Private Family Office, sometimes called a Family Office, is a business entity that handles the financial concerns of ultra-high net worth families (UHNW) and billionaires. The job scope of these offices varies depending on the family members, but the Family Office essentially has captive agents handle the wealth management affairs of the clients they represent.
While UHNW families do hire renowned wealth management firms to help them manage and invest, ultra-high net worth families and billionaires with vast holdings need dedicated professionals who exclusively handle their business affairs.
While UHNW families do hire renowned wealth management firms to help them manage and invest, ultra-high net worth families and billionaires with vast holdings need dedicated professionals who exclusively handle their business affairs.
What Does a Family Office Do in 2024?
The family office services are varied; but they primarily handle the finances, which often have depth and breadth, and each agent in the office is a subject-matter expert in their respective fields. Just some of the duties of the Family Office include but are not limited to handling estate management, accounting, insurance, budgets, philanthropy, family-owned business holdings, taxes, and legacy. That's the short list.
A Private Family Office often offers 360-degree solutions for a family's operation, and those non-financial responsibilities are often addressed within the office as well. Estate Managers (aka Household Managers) and Personal Assistants (aka Private Secretaries) will handle all day-to-day operations, which include but are not limited to coordinating, managing, hiring and training of household staff; travel arrangements (domestic and international); private schooling and tutors for children; management of art and exotic car fleets; lifestyle management; and any other miscellaneous arrangements. A Chief of Staff will often oversee all aspects of the operation.
A Private Family Office often offers 360-degree solutions for a family's operation, and those non-financial responsibilities are often addressed within the office as well. Estate Managers (aka Household Managers) and Personal Assistants (aka Private Secretaries) will handle all day-to-day operations, which include but are not limited to coordinating, managing, hiring and training of household staff; travel arrangements (domestic and international); private schooling and tutors for children; management of art and exotic car fleets; lifestyle management; and any other miscellaneous arrangements. A Chief of Staff will often oversee all aspects of the operation.
Single Family Offices vs. Multi-Family Offices
While it's true that ultra-high net worth families and billionaires can afford their own private offices, staffing a Family Office with trusted financial advisors that manage hundreds of millions or billions of dollars is not an easy task. Rather than compete for talent, a handful of firms worldwide have a sort of "collective" and UHNW families and individuals pool resources to manage wealth (see graphic below).
How is the family office changing in 2024?
The typical family office in 2024 still serves the affluent family members with the management of budgets, charity work and the transfer of wealth; but the structure is changing. Many services are now outsourced. In the past, most or all of the work was done internally; but because of the complexity of the wealth management, that may not always be possible.
Although the services are more outsourced today, the UHNWIs that employ the family office staff still rely on their advisor's discretion about when and how they should outsource.
Although the services are more outsourced today, the UHNWIs that employ the family office staff still rely on their advisor's discretion about when and how they should outsource.
Does Every High-net-worth Individual Need a Private Office?
Family offices need to set clear goals
The short answer is no, they don't. Ultimately, it does depend on how the individual wants the wealth managed. A wealthy individual may not want a team of advisors because the plan they have involves other programs, such as giving money away to charities. That may even be true if the individual has children.
For personal reasons, many generations have been excluding children from capital and assets because they want their generation to value money by earning it themselves. Both Bill Gates and Warren Buffett, for example, have committed to giving their wealth away to an organization of charitable causes. The bulk of their estate won't pass to their children.
For personal reasons, many generations have been excluding children from capital and assets because they want their generation to value money by earning it themselves. Both Bill Gates and Warren Buffett, for example, have committed to giving their wealth away to an organization of charitable causes. The bulk of their estate won't pass to their children.
There Can't Be a Traditional Family Office Definition
As you might expect, not everyone agrees on what the formal definition of a family office is. The same is true for other facets of the high-net-worth space. For example, it would be exceptionally difficult to get 10 people in a firm to agree on the definition of a personal assistant in a private estate. Others may call the position majordomo, estate manager, butler or executive assistant.
Family office services vary wildly depending on personal preference. It's a sign of the times. Each family member chooses to use terms in the general way that they see fit.
Family office services vary wildly depending on personal preference. It's a sign of the times. Each family member chooses to use terms in the general way that they see fit.
Should Family Office Services Be Comprehensive?
Family offices employ subject-matter experts
This is a resounding "yes." While some family offices may have different structures in place (depending on the industry), the services that are offered should be very comprehensive. This is true across any organization. Due to the litigious nature of our modern society, hiring subject-matter experts to protect your assets should be a high-net-worth family's number-one priority. Additionally, getting advice and insights from a variety of world-class clients is the best investment for a family's future.
One last word on this subject: First, a family office should make a time each year to evaluate if they should continue with a specific course of action. A single plan that's created for a family office can't be good indefinitely. Tax considerations, for example, have to be assessed based on new laws passed, which may require that certain investments are moved.
One last word on this subject: First, a family office should make a time each year to evaluate if they should continue with a specific course of action. A single plan that's created for a family office can't be good indefinitely. Tax considerations, for example, have to be assessed based on new laws passed, which may require that certain investments are moved.
Can Your Firm Help Us Search for Family Office Staff?
Yes. We work with a number of family offices around the world: North America, Asia, Europe, and the Middle East (MENA) region. Our service is exceptional as we offer concierge VIP treatment. Our site has direct and transparent information about our company and process. You can contact our office to learn about the benefits and cost of our services.
We have strict client confidentiality policies, so your investment with us isn't just about the management of your staff. We've been trusted by generations. If you don't have a job description for the position you need to fill, we can send a form with essential questions, and we will create a job description for you. We will work toward making the placement is right until you accept the candidate we present.
We have strict client confidentiality policies, so your investment with us isn't just about the management of your staff. We've been trusted by generations. If you don't have a job description for the position you need to fill, we can send a form with essential questions, and we will create a job description for you. We will work toward making the placement is right until you accept the candidate we present.
What Is the Total Cost for Family Office Staff in 2024?
We staff family offices
How much of an investment you will need to make in staff isn't always clear. Ultimately, it will be up to you and the candidate to negotiate the salary. Depending on what voids need to be filled in your family office will determine what skills we need to target when searching to fill the role.
Some of the skills that family office members have include but aren't limited to investment strategies, tax preparation, capital investments, experience in multi-family offices, succession planning, business management structures.
Some of the skills that family office members have include but aren't limited to investment strategies, tax preparation, capital investments, experience in multi-family offices, succession planning, business management structures.
FILED UNDER: Family office, investment, wealth management, member comments, wall street, family office advice, 2024
