Family Office - “Our client do more than invest in the future. they use their wealth to shape it”.
WHY CREATE A FAMILY OFFICE?
A key challenge facing many ultra-high net-worth families, particularly in today’s volatile environment, is how best to maintain, grow and pass on family wealth for future generations.
A family office provides an optimal succession planning and asset management/protection platform. The family office can shepherd family members towards achieving their dual goals of enhancing wealth from an investment perspective whilst also ensuring that wealth is not dissipated over future generations.
There are large differences between families in terms of their size, age range, scale of wealth, geographical spread, extent and nature of business interests and their attitude towards risk, philanthropy, and privacy. The family office concept provides families with the opportunity to create a bespoke platform to govern the investment and administration of family wealth for current and successive generations.
It allows a means of expressing and putting into action families’ core values and goals, which are embedded through education of family members and enhanced through communication. Control, governance, and communication mechanisms within the family office are critical, both to assist with decision making and in terms of how the family can work best with external advisers.
HOW MUCH DOES A FAMILY OFFICE SERVICE COST?
The cost of a family office service depends on a number of variables including nature of the family’s investments.
Complexity is the greatest predictor of cost for a family office. Getting to an “all in” cost of wealth management requires detailed consideration of the cost of the family office, the fees paid to advisory firms (accountants, lawyers, etc.) and investment costs (investment consultant, investment management fees, custody etc).
GOALS AND COMPLEXITY OF THE FAMILY OFFICE:
A common misconception is that asset size is the most important factor in determining wealth management needs. In reality, the goals and circumstances of the family will dictate the complexity of wealth management needs.
Key factors to consider include the number of family members or households, the nature of the ownership and legal structures, the types of investments, and the entities that house them.
MULTI FAMILY OFFICE:
A multi family office supports multiple families to preserve and manage their wealth and enables those with a lower level of wealth to leverage the services enjoyed by a dedicated single-family office.
FUNCTIONS OF A FAMILY OFFICE:
A family office counsels the wealthy entrepreneur and implements their decisions acting as CIO and CFO, working with a network of trusted professionals including investment managers, trust administrators, lawyers, and accountants at various stages in of the cycle.
The ultimate goal of a well-run office is to enhance and simplify the family members lives, acting as gatekeeper / de facto trustee, whilst concurrently increasing their global wealth.
WEALTH PRESERVATION / WEALTH MANAGEMENT:
CIO.
Discretionary Investment Management.
Risk Management.
Private Equity.
Asset Allocation.
Bank Accounts & Currency.
WEALTH PLANNING:
Holding structures: Trusts / Private Open Ended Investment Company (OEIC).
Offshore jurisdictions.
Tax structuring & tax reporting / return.
Wills and gifts.
Legacy Planning.
Life Insurance.
Prenuptial Agreements.
ALTERNATIVE ASSETS:
Art.
Wine.
Antiques.
Cars / Boats.
Crypto.
REAL ESTATE:
Identification.
Investment.
Development.
Management of.
CHARITY & STRATEGIC PHILANTHROPY:
Creating Charitable Trusts and Foundations.
Managing Charitable Investments.
Managing and monitoring projects.
Organising events and collecting funds.
BUSINESS STRUCTURING / BUSINESS DEVELOPMENT:
Financing.
Networking / Introductions.
Company Registration.
Shareholders agreements.
Joint Ventures.
Projects.
FAMILY GOVERNANCE / TRUSTEE:
Family charter.
Family board.
Family core values.
Family goals.
Family financial education.
ESG.
HOUSEHOLD & LIFESTYLE MANAGEMENT / ADMINISTRATION:
Insurance.
Legal services.
Invoice payment.
Letter drafting.
Staff and property management.
Recreational & Concierge services.
PERSONAL CFO / FINANCIAL ADMINISTRATION & REPORTING:
Cash flow forecasting and management.
Budgeting.
Accounting / tax return.
Holistic wealth reporting.
Technology.