Keeping it in the family
Is that spare $400 million giving you a headache? Do you already have the private jet, the yacht, art collection, international properties and a charitable foundation? Maybe you now need your own team of dedicated advisers to help you oversee your family's wealth. How about a family office?
Profiles of family offices
AN INCREASING NUMBER of lawyers, accountants, private banks and ultra-wealthy families themselves are trying to break into the family office sector, describing themselves as multi-family offices, or multi-client family offices, private investment offices or even virtual family offices.
There are now an estimated 3,500 family offices in the US and about 200 in Europe. But the influx of players, each with its own terminology, is causing confusion for families. So much so that an increasing number have turned to consultants for help.
And while each hybrid of family office has its merits, can they all succeed when there are only 70,000 potential clients?
Employing an entourage might sound like an extravagance, but for the ultra-rich family the family office could well be a necessity.
Families that have acquired vast sums through the sale of a family business do not necessarily come from a financial background. A group of investment advisers to ensure that their money is looked after and passed on in good order to succeeding generations can be a good addition to the household staff.