The modern family office work with anything from help with immigration, finding a property to live in, getting children into school, setting up charitable foundations, or project finance. And then, critically, it does a lot of wealth structuring: preserving wealth within and between generations by using things like family trusts and foundations. Also, on top of that, the family office also does asset management.
What kinds of family offices are available?
The single-family office is the traditional variety of the family office that serves as wealth-management firm and consultancy. It typically supports a single UHNWi family.
The multi-family office serves several families. Transitions happen from one type to another. For instance, the experience accumulated by the original Rockefeller family office allowed it to gain the trust of over 240 new clients.
What does the family office do?
The family office does the main thing – it saves the precious time of its customers to give more life in return. “One-stop shops” for UHNWis emerged at the beginning of this century, vastly expanding the traditional scope of classy wealth management family office in London.
Who and how works at the family office? Today’s large corporates are showcasing their culture as a critical strategy to attract and retain the best talent in the market. When it comes to Family Offices, cultural fit becomes even more crucial. These are workplaces where it’s more than just business; it’s personal. After all, this kind of establishment is recruiting into a team that is managing, growing and protecting family assets.
The level of trust you put to your family office is high. Family offices can successfully cope with delicate issues like succession planning and inheritance issues. Once its owner decides the generated wealth has to be passed on, the family office delivers the plan and provides impeccable and confidential execution.
The UBS and PwC noted that 700 of the most wealthy people on this planet are older than 70 years, hence within next 20 years around $3.5BN will undergo inheritance process or redistribution according to the succession plans.
It is large, but sophisticated market. Only the companies which follow a client-led approach will be able to stay in business within 20 years to come.
“The key to success is establishment of deep relationships and understanding of clients. It empowers us to provide increasingly sophisticated services in a way, tailored to client needs.”
Yury Gantman,
CEO, Oracle Capital Group
