What Is a Family Office? For the 8 figure BGOL Members only.

[RoomService]

What Is a Family Office?​

A family office is a private wealth managementadvisory firm that serves ultra-high-net-worth individuals (HNWI).

Family offices are different from traditional wealth management shops in that they offer a total solution to managing the financial and investment needs of an affluent individual or family.

For example, in addition to financial planning and investment management, many family offices offer budgeting, insurance, charitable giving, wealth transfer planning, tax services, and more.

KEY TAKEAWAYS​

• Family offices provide a broad spectrum of private wealth management services to one or a small number of ultra-high-net-worth families.
• Besides financial services, family offices can provide various kinds of planning, charitable giving advice, concierge services, and other comprehensive services.
• An important responsibility a family office has is to educate next generations in the handling and management of their wealth.
• Single-family offices serve one individual and their family, while multi-family offices serve more than one family, and are less expensive due to economies of scale.
• The need for a family office can be determined by the extent of a family's wealth and the complexity of its life due to that wealth.

Understanding Family Offices​

A family office provides a wide range of services tailored to meet the needs of HNWIs. From investment management to charitable giving advice, family offices may offer a dedicated team of specialists to service these clients.

Family-run businesses may require structures for succession planning, such as trusts or a foundation for the family assets. Given the complexity of these situations, clients may utilize a family office to help manage the assets and align interests.

The family office can also handle non-financial issues, such as private schooling, travel arrangements, and miscellaneous household arrangements.

Family offices are typically defined as either single-family offices or multi-family offices (MFOs). Single-family offices serve just one ultra-affluent family. MFOs are more closely related to traditional private wealth management practices. They seek to build their business by serving many clients.1

MFOs are more prevalent due to economies of scalethat allow for cost-sharing among the clientele.

Importantly, what a family office does can differ widely. While one client may need a family office for high-caliber advice from a range of experts, another may need a family office to organize their lifestyle needs.

The Responsibilities of a Family Office​

Providing advice and services for ultra-wealthy families under a comprehensive wealth management plan is far beyond the capacity of any one professional advisor.

It requires a well-coordinated, collaborative effort by a team of professionals from the legal, insurance, investment, estate, business, and tax disciplines.

Often, a family office provides high-level financial planning through an integrative approach. Combining asset management, cash management, risk management, financial planning, lifestyle management, and other services, family offices help clients navigate the complex world of wealth management.

Legacy Planning and Management​

After a lifetime of accumulating wealth, high-net-worth families can be confronted with several obstacles when trying to maximize their legacy. These obstacles can include confiscatory estate taxes, estate laws, and family or business issues.

Given this complexity, a comprehensive wealth transfer plan must take into account all facets of the family’s wealth, including the management or transfer of business interests, the disposition of the estate, management of family trusts, support for philanthropic desires, and family governance.

To ensure the family’s wealth transfer plan is well-coordinated and optimized for its legacy, family offices work collaboratively with a team of advisors from each of the necessary disciplines.

Lifestyle Management​

Many family offices also serve as a concierge for families, handling their personal affairs and seeing to their lifestyle needs.

This service could include conducting background checks on personal and business staff, providing personal security for home and travel, aircraft and yacht management, travel planning and fulfillment, and the streamlining of business affairs.

Investment Management​

For a single family, a family office may be responsible for investment portfolio management, commercial real estate purchase, sale, and property management, private equity deals, hedge fund investments, and venture capital investments.

Family Wealth Education​

A family office is responsible for educating younger members of the family in the proper handling of wealth and how it can or should be used, based on the family's values. The family office can help instill in next generations an appreciation for their wealth and its demands. With the right education, a family office can help maintain family unity and prevent discord over money issues between the generations.

​

John D. Rockefeller is thought to have established the first full-service, single family office in the U.S. in 1882. In 1937, when he died, he was worth $1.4 billion. That's equivalent to approximately $255 billion as of 2019. The Rockefeller family office exists to this day.2

Types of Family Offices​

Traditional Family Office​

A traditional family office is an entity established by a wealthy individual to manage the family's wealth. It usually has a staff of experts who protect and grow the wealth. The staff might include a financial advisor, tax specialist, estate planner, accountant, and more. All are employed by the family, so there aren't the conflicts of interest with products and services that might be found if they worked for other financial institutions. The overarching objective is to serve the family's demanding financial interests.

Multi-Family Office​

A multi-family office is a firm that manages the wealth of more than one family. It offers the same types of services that a traditional family office offers. Its variety of experts tailor wealth-related solutions for each family's financial and household needs.

Beyond investment management, these might involve bill-paying, transfer of wealth plans, philanthropic advice, wealth education, and more. Multi-family offices usually charge a percentage of investment portfolio assets under management for their services.

They can be less expensive than traditional family offices because they work for more than one family. However, a family has less control over these providers, as a result.

Outsourced Family Office​

An outsourced family office is a network of appropriate service providers—financial advisor, lawyer, accountant, etc.—who collaborate on behalf of a client. Typically, one of the professionals is appointed to coordinate all communication and efforts.

The fact that they're authorized to consult with each other about one family's financial business is what separates them from other professionals who provide the same services.

An outsourced family office can handle many of the same matters that traditional and multi-family offices handle. These might include philanthropic planning and family wealth education. This type of family office is usually less expensive than a traditional family office. However, the family also has far less control over the professionals.

Do You Need a Family Office?​

Whether or not someone needs a family office depends on the extent and complexity of their wealth, as well as the demands that wealth puts on their family. Certain situations may require a variety, or teams, of specialists with access to high-value resources that can address a long list of important issues.

Broadly speaking, those with a net worth of $200 million might consider establishing a traditional family office.3

What's a Family Office?​

A family office is a private wealth management firm established by an ultra-high-net-worth family that provides that family with a selection of personalized services that include investment management, financial planning, estate and tax planning, philanthropic investing, concierge services, and more.

Is a Family Office the Same as a Wealth Advisory Firm?​

Not really. Wealth advisory firms can offer some of the services that a family office offers, such as portfolio management and investment management. However, wealth advisory firms typically have many different clients while a family office focuses on one (or several if it's a multi-family office). What's more, family offices offer a much larger range of services to address the complete list of wealth-related needs an ultra-high-net-worth family has.

The Bottom Line​

A family office is established by ultra-high-net-worth individuals for a variety of reasons. First and foremost, a family office needs to manage and grow wealth. It also has to provide a wide variety of other services that can help a family manage the complexities and demands associated with that wealth.

While a family office may be appropriate for some extremely wealthy individuals and families, most highly affluent people should be well served by the professionals at a wealth advisory firm.

What Is a Family Office and Do You Need One?

Family offices are private wealth management advisory firms that serve ultra-high-net-worth individuals.

www.investopedia.com

Top 100 Largest Family Office Rankings by Total Assets​

Top 100 Largest Family Office Rankings by Total Assets - SWFI

View the largest 100 Family Office profiles from across the globe ranked by Total Assets.

www.swfinstitute.org

Family offices have tripled since 2019, creating a new gold rush on Wall Street​

• According to a new report from Preqin, the number of family offices worldwide topped 4,500 last year, with a concentration in North America.

Family offices have tripled since 2019, creating a new gold rush on Wall Street

Experts say family offices now manage $6 trillion or more, and their ranks are growing.

www.cnbc.com

 

[doe moe]

#GOALS

 

[RoomService]

#GOALS

I understand. #metoo

 

[Goingmark40]

good knowledge

 

[Mr.Chuckles]

FIRE DROP

 

[305]

They will sleep on this post. This is a sneak peak into a world we never get to see.

 

[dwayne1376]

Wow this is dope!

 

[34real]

Something I didn't know but interesting.

Most can't sit in the same room with family and talk about money before someone storms out or gets put in a chokehold....Aun't Sherly has always been money hungry.

 

[RoomService]

good knowledge

FIRE DROP

They will sleep on this post. This is a sneak peak into a world we never get to see.

Wow this is dope!

This is probably the best and most informative thread that I’ve ever created on the board.

 

[shaddyvillethug]

They will sleep on this post. This is a sneak peak into a world we never get to see.

Speak for yourself and your Haitian family

My family has a Sommelier and other Lavish elements.

 

[Tdot_firestarta]

One of my long term goals

One of my shorter term goals is to become an accredited investor in the next 5-8 years.
That could provide a springboard to bigger and better things

 

[Flawless]

One of my long term goals

One of my shorter term goals is to become an accredited investor in the next 5-8 years.
That could provide a springboard to bigger and better things

You just need to make 200k a year to be accredited.

 

[Tdot_firestarta]

You just need to make 200k a year to be accredited.

In Canada we need to have over 5 million in Assets ( after liabilities are subtracted)

I ain't there yet

 

[Flawless]

In Canada we need to have over 5 million in Assets ( after liabilities are subtracted)

I ain't there yet

You're poor, don't talk to me.

 

[darth frosty]

 

[APOPHIS]

90% of FOs are used to obfuscate investment practices and evade taxes, laws, and penalties imposed on HFs to keep them from creating another 2008.
SO much shady stuff goes on with FOs. The risk these guys take is bananas.

 

[DragonXJC]

One of my first jobs was working(tech) in PWM, didn't know it was called a "family office".

 

[DC_Dude]

Thanks for sharing. Good information.

 

[55th View]

Chiming in, since this is limited to top earners like myself. Risky, but very rewarding. Don't rely on domestic banks alone, however. I keep 90% of my money in the Loins of London. Simply put - there's a lot more flexibility.

 

[R-One]

Chiming in, since this is limited to top earners like myself. Risky, but very rewarding. Don't rely on domestic banks alone, however. I keep 90% of my money in the Loins of London. Simply put - there's a lot more flexibility.

Lloyd's of London

 

[Flawless]

Chiming in, since this is limited to top earners like myself. Risky, but very rewarding. Don't rely on domestic banks alone, however. I keep 90% of my money in the Loins of London. Simply put - there's a lot more flexibility.

Is loins of london a strip club?

 

[darth frosty]

 

[NightMare Paint]

Lloyd's of London

He said what he said!

 

[Madrox]

Former financial advisor and CFP Leisa Peterson reveals the truths she discovered after more than a decade in the industry. In this video, you'll learn:

-Why Leisa left the advising industry
-The 4 crucial things to look for in a financial advisor
-8 key questions to ask before hiring an advisor
-Major red flags to watch out for
-How to build your financial dream team

 

[Madrox]

Chiming in, since this is limited to top earners like myself. Risky, but very rewarding. Don't rely on domestic banks alone, however. I keep 90% of my money in the Loins of London. Simply put - there's a lot more flexibility.

Lloyd's of London

Is loins of london a strip club?

He said what he said!

@mcguyver

Post yo account balance...

BITCHEZ!!!!! TRUE BALLA!!!!! HOLLA AT ME MOUSE/MONTANA!!!!!! :yes::yes::yes::yes::yes::yes::yes:

www.bgol.us

 

[RoomService]

Deloitte Private’s latest report in its Family Office Insights Series - Global Edition explores the rapid expansion of family offices and offers a vision of the future landscape​

• There are an estimated 8,030 single family offices in the world today, up from roughly 6,130 in 2019. This number is projected to grow to more than 10,720 by 2030, a remarkable 75% increase. Similarly, family offices’ total estimated assets under management (AUM) are expected to rise 73% from US$3.1 trillion today to US$5.4 trillion by 2030.
• The estimated wealth of families with family offices currently stands at US$5.5 trillion. This is up from US$3.3 trillion in 2019 and is expected to grow to US$9.5 trillion by 2030 – a 189% increase.
• Women now serve as the principals of 15% of family offices worldwide, demonstrating an increase in women taking on greater leadership roles within family enterprises.

New York, NY, USA 04 September 2024—The release of Deloitte Private’s second report in its Family Office Insights Series – Global Edition, Defining the Family Office landscape, outlines the world of family offices—what they are, how they’re growing, their future outlook, and more. As family offices continue rapid global expansion, Deloitte Private’s research reveals that these organizations expect increased wealth creation and enhanced influence in the investment community.
“This latest edition of Deloitte Private’s Family Office Insight Series highlights the unique points of view of family offices, shining a light on where they are today and their prospects for the future,” says Wolfe Tone, Deloitte Private Global leader, Deloitte Global. “Globally, family offices are expanding rapidly by focusing on their growing presence throughout different areas of the world, asset base, industry impact, and what makes a family office successful. As they continue to navigate ongoing economic challenges and geopolitical uncertainty, family offices are expanding their services, maturing their structures, focusing on their talent strategies, and carefully managing their investments to ensure sophisticated and efficient operations for the future.”

Family office expansion flourishes around the globe
​

The family office arena has been growing rapidly, reflecting the rise in family wealth globally—and this growth is expected to continue in the coming years. Family offices’ surge in popularity is driven by a combination of factors, including increased wealth concentration, successful transfers of generational wealth, robust private equity and Mergers & Acquisitions markets, and the pursuit of more customized investment strategies and services.

There are an estimated 8,030 single family offices in the world today —a 31% increase from 6,130 in 2019. This number is projected to grow to 9,030 family offices by 2025 (a 13% increase) and 10,720 family offices by 2030, marking a potential 75% rise in just over ten years.
By region, there are 3,180 family offices in North America today, 2,020 in Europe, 2,290 in Asia Pacific, 290 in the Middle East, 190 in South America, and 60 in Africa. The North America region is expected to undergo the greatest growth, with its number of family offices expected to nearly double from 2,210 in 2019 to 4,190 in 2030 – a 90% increase.
However, Asia Pacific is gaining considerable steam and has surpassed Europe in terms of its number of family offices (2,290 versus 2,020 for Europe). It is expected to outpace North America in terms of its speed of growth between now and 2030.

​

Estimated number of family offices worldwide
​

2019

• Global: 6,130
• North America: 2,210
• Europe: 1,680
• Asia Pacific: 1,790
• Middle East: 250
• South America: 150
• Africa: 50

2024

• Global: 8,030
• North America: 3,180
• Europe: 2,020
• Asia Pacific: 2,290
• Middle East: 290
• South America: 190
• Africa: 60

2025 (projected)

• Global: 9,030
• North America: 3,550
• Europe: 2,290
• Asia Pacific: 2,600
• Middle East: 310
• South America: 210
• Africa: 70

2030 (projected)

• Global: 10,720
• North America: 4,190
• Europe: 2,650
• Asia Pacific: 3,200
• Middle East: 350
• South America: 240
• Africa: 90

The rapid rise in the number of family offices, alongside the tremendous growth in family wealth, is also expected to impact family offices’ total estimated AUM significantly. Today, family offices hold US$3.1 trillion in AUM. This number is expected to increase by 73% to US$5.4 trillion in 2030

Family offices are branching out, with North America and Asia Pacific topping the destination list
​

In line with the rapid expansion in the family office arena, over a quarter (28%) of family offices now have more than one branch. One-in-10 (12%) plan to establish another branch, with North America and Asia Pacific currently proving to be the most attractive destinations—with 34% of family offices targeting each of these regions (compared to 24% for Europe).

Family wealth is expected to grow by 189% between 2019 and 2030
​

A notable 68% of all family offices have been established after the millennium. Spurring this global growth is a meteoric rise in family wealth. In 2019, the total estimated wealth for families with family offices was US$3.3 trillion. Today, it is US$5.5 trillion, reflecting a 67% increase since 2019, with expectations for it to rise to US$9.5 trillion by 2030. This constitutes an expected 189% rise in family wealth between 2019 and 2030. This influx of new money is changing the face of wealth, with most family offices now serving first (41%), second (30%), and third (19%) generation families.
“Off the back of gains in their operating businesses and wider investments, the world’s most affluent families have been accumulating wealth at a meteoric pace – and we expect this trend to continue,” says Dr. Rebecca Gooch, Deloitte Private Global Head of Insights, Deloitte Global. “With an expectation that family wealth will nearly triple between 2019 and 2030, this is spurring demand for private wealth management structures, leading to a rapid rise in the size and sophistication of the family office arena.”

Women are increasingly leading family offices worldwide
​

While the gender gap is still prevalent, women are increasingly earning their own fortunes and taking on greater leadership roles within the family enterprise. This is helping to bolster the family office arena, as women now serve as the principals for 15% of family offices worldwide.
Analyzing these figures by region, women serve as the principals for 21% of the family offices in Africa, 20% in Europe, 18% in Asia Pacific (with 16% for Asia and 22% for Oceania-based countries), 17% in South America, 12% in North America, and 10% in the Middle East.
The findings also reveal that, on a like-for-like basis, women are more likely than men to utilize a family office for their wealth management. This is suggested by the fact that women constitute 10% of all individuals worldwide with US$100 million or more in wealth (with men constituting 90%). However, they represent a more notable 15% of all family office principals with US$100 million or more in wealth (with men reducing to 85%).

The future of the family office landscape includes continued growth and greater sophistication
​

While it’s been established that the family office arena has and will continue to grow rapidly, emerging trends are also reshaping the landscape. When respondents were asked what they believe the future will look like, the majority expect there to be an expansion in the number of family offices worldwide (73%), that family offices will become more institutionalized and professionally managed (66%), and that they will adopt greater asset class and geographic investment portfolio diversification (55%).
To a lesser but still notable extent, they believe family offices, which are embedded in families’ operating businesses, will increasingly transition into independent structures (38%), that family offices will expand their service offerings (36%), and that there will be a widespread adoption of operations-based digital technology (33%) and sustainable investments/operations (32%).
“In looking ahead, many family offices are staying true to the traditions of past and current generations, while also evolving to meet the needs of future generations,” says Adrian Batty, Deloitte Private Global Family Enterprise leader, Deloitte Global. “As the wealth management sector matures, the enablement for firms to scale-up in sophistication and reach creates further opportunities for growth.”
To view the full results of Deloitte Private’s latest Family Office Insight Series – Global Edition survey, Defining the Family Office landscape, visit: https://www.deloitte.com/global/en/services/deloitte-private/about/defining-the-family-office-landscape.html.

Methodology
​

Deloitte Global surveyed 354 single family offices from around the world between September and December 2023. These family offices oversee an average asset under management (AUM) of US$2.0 billion, while the associated families have an average wealth of US$3.8 billion (total estimated AUM is US$708 billion and family wealth US$1.3 trillion). The report also conducted in-depth interviews with 40 senior family office executives, representing some of the most prominent families in the world. The report and interviews offer invaluable insights for family offices to navigate the landscape and plan for long-term success.

Deloitte Private’s latest report in its Family Office Insights Series - Global Edition explores the rapid expansion of family offices and offers a vision of the future landscape

here are an estimated 8,030 single family offices in the world today, up from roughly 6,130 in 2019. This number is projected to grow to more than 10,720 by 2030, a remarkable 75% increase.

www.deloitte.com

 

[RoomService]

https://www.cnbc.com/2025/05/14/why-the-wealthy-cant-find-enough-people-to-manage-their-money.html

 

[RoomService]

Talent war between family offices and Wall Street drives up salaries.​

• Wealthy families are spending an average of $3 million to operate their private investing wings, known as family offices, according to a J.P. Morgan Private Bank report.
• The biggest cost is staffing, which has become more expensive as family offices have tripled in number over the past five years.
• That’s leading to competition for talent with banks, private equity firms and hedge funds.

The typical family office costs more than $3 million a year to operate, as competition for talent drives up staffing expenses, according to a new study.




Wealthy families are spending anywhere from $1 million to more than $10 million a year to operate their family offices, with the average now at around $3.2 million, according to the J.P. Morgan Private Bank Global Family Office Report released this week. While the costs vary widely depending on assets, experts say expenses are growing across the board as family offices explode in size and number and compete more directly with private equity, hedge funds and venture capital.

“There’s a real war for talent within family offices,” said William Sinclair, U.S. head of J.P. Morgan Private Bank’s Family Office Practice. “They’re competing for talent against private equity and hedge funds and banks.”

Smaller family offices spend less, of course. According to the report, which surveyed 190 family offices with average assets of $1.4 billion, family offices that manage less than $500 million spend an average of $1.5 million a year for operating costs. Family offices between $500 million and $1 billion spend an average of $2.7 million, and those above $1 billion average $6.1 million. Fifteen percent of family offices spend more than $7 million, while 8% spend more than $10 million.

The biggest cost is staffing, which has become more expensive as family offices have tripled in number over the past five years. Family offices are increasingly competing with one another for senior talent, according to recruiters.

More importantly, family offices are shifting more of their investments into alternatives, which include private equity, venture capital, real estate and hedge funds. According to the J.P. Morgan survey, U.S. family offices have more than 45% of their portfolios in alternatives, compared with 26% for stocks.




As they expand their reach into alternatives, they’re increasingly in direct competition with big private equity firms, venture capital firms and deal advisors to bring in top talent.

“We’ve seen over the last decade, the professionalization and institutionalization of the family office space,” said Trish Botoff, founder and managing principal of Botoff Consulting, which advises family offices on recruiting and staffing. “They’re building out their investments teams, hiring staff from other investment firms and private equity firms, so that has a huge impact on compensation.”

According to a family office survey conducted by Botoff Consulting, 57% of family offices plan to hire more staff in 2024 and nearly half are planning on extending raises of 5% or more to their existing staff. Experts say overall pay at family offices is up between 10% and 20% since 2019 due to frenzied demand for talent in 2021 and 2022.

The average compensation for a chief investment officer for a family office with less than $1 billion in assets is about $1 million, according to Botoff. The average comp for a CIO overseeing more than $10 billion is just under $2 million, she said. Botoff said more family offices are adding long-term incentive plans, such as deferred compensation, on top of their base salary and bonus, to sweeten the packages.

Competition is even driving up salaries for lower-level staff. Botoff said one family office she worked with was hiring a junior analyst who asked for $300,000 a year.

“The family office decided to wait a year,” she said.

Competition with private equity firms is getting especially costly. As more single-family offices do direct deals, buying stakes in private companies directly, they’re trying to lure talent from the big private equity firms such as KKR, Blackstone and Carlyle.

“It’s the biggest quandary,” said Paul Westall, co-founder of Agreus, the family office advisory and recruiting firm. “Family offices just can’t compete at a senior level with the big PE firms.”

Instead, Westall said, family offices are recruiting midlevel managers at PE firms and giving them more authority, better access to deals and higher pay. Family offices are now sometimes giving PE recruits a “carry” — meaning a share of the profit when a private company is sold — similar to PE firms.

He said better pay, access to billionaires and their networks, and the benefit of “not feeling like just a cog in a big wheel” are making family offices more attractive places to work.

“If you look back 15 years ago, family offices were where people went to retire and have work-life balance,” he said. “That’s all changed. Now they’re bringing in top talent and paying their people, and that’s pushed them into competition with the big firms and the banks.”