What is a Family Office?

A common question I often see is What is a family office?  In the following video, I will cover the definition of family offices, why it is important to know why it is important to understand what is a family office and how one operates, what they invest in, how to learn more about family offices and the three reasons why family offices continue to grow despite the bad economy.

Video Transcript/SummaryThe strategies and tips provided within this video module include:

  1. What is a family office?  A family office is an exclusive wealth management firm that typically only accepts clients with at least $10-25 million in investible securities.  
  2. Family offices often have fewer total clients than traditional wealth management firms–even just one client, as is the case with single-family offices.
  3. While they may have a limited number of clients, family offices spend a lot more time and focus on their select clients.
  4. Family offices may charge a premium because they offer a full and diverse range of services to their wealthy clients including: tax optimization, business and wealth transfer, charitable giving, estate planning, philanthropy and even ongoing budgeting services.
  5. Family offices are important to understand because while there are only a few thousand active family offices, they control a massive amount of wealth.
  6. Family offices are still growing in size despite the bad economy for the following reasons:
  7. The first reason is that many wealthy individuals and families are realizing that it sometimes pays to make sure that a firm is making sure you are making the best investment decisions and not losing money.
  8. The second reason is that lots of large family offices are looking to grow their assets under management by lowering their minimum assets requirement in order to bring in smaller clients.  
  9. The third reason is that the concept of a family office is becoming more familiar with people around the world.

The family office industry is growing very rapidly and more funds are looking to this type of investor to raise capital.  For all of the reasons explained in the video, it is crucial that you understand exactly what is a family office and how they operate.  

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