Families and individual private investors may decide not to set up their own family office because they do not want to be responsible for managing a financial services business. Or, they may prefer the continuity offered by an established institution where they can evaluate the quality of financial services before they choose to become a client.
Individuals and families with assets greater than $20 million may be best served by a multi-family office (MFO) or a financial institution or registered investment advisor with a dedicated wealth management specialization. Multi-family offices have historically provided high net worth families with comprehensive financial services and confidentiality not available from larger, product-driven financial institutions. Participating families have access to a wide array of integrated services that are not collectively offered anywhere else.
Value added by multi-family offices includes:
- Financial quarterback supported by specialists in each field
- Teams of qualified professionals who can collaborate
- Continuity of service if quarterback leaves
- Experience in managing generational transitions
- Better risk management policies and procedures
- More comprehensive information systems
- Relationship pricing for inter-disciplinary services
- Fee-only revenue model eliminating the conflict-of-interest from commissions on product sales
- A tactical, values-based approach to investing, transaction planning and philanthropy