For families with substantial financial resources, a family office undeniably provides the ultimate in control, privacy and customisation for optimising the family’s wealth, legacy and resources.
The collapse of renowned public and private financial institutions, the panic in the global economy, outright allegations of fraud among financial superstars, and the proliferation of conflict-ridden investment vehicles make it imperative for high net worth families to consider creating a family office to control a family’s destiny and build upon a legacy of sustainability.
The CEO of a corporation does not run a multi-billion dollar business alone or make every decision in finance, accounting, legal, marketing, and other areas. Similarly, the family office should view a Multi Family Office (MFO) as the way for the family to have a talented, skilled and experienced team to manage its wealth in all its forms.
Creating a well-run family office is a smart business decision. As with any business, it requires a clear mission, a fully thought-through strategic plan and an understanding of the resources available internally and on an outsourced basis. An effective family office is a highly valuable asset that preserves and creates wealth for the family.
Generations from now, after business interests have been liquidated and/or greatly dispersed and individual investments have been eclipsed, the family office will stand as the family’s unifying entity, signalling a healthy and productive path to follow. A family office stands as an emblem of the values established and nurtured by the family for the world to see.
For the families that create them, an effective family office can provide:
• Control, coordination and integrated management of investment, business, philanthropic and personal services
• Privacy and confidentiality
• Dedicated focus on the needs and requirements of the family
• Services and benefits customized to the needs of the family
• Coordination and management of outsourced providers
• Purchasing leverage, fee minimization and cost savings
• Risk management and compliance
• Alignment with the family’s legacy, vision and values