Family offices (FOs) come in so many shapes and sizes that the term ceases to have specific meaning. It’s simply a set of services provided for a family.
The origins of the FO often determine their primary focus: there are plenty of FOs that are simply vehicles for co-investment, or glorified reporting platforms.
Having a FO essentially means taking a professional approach to managing the affairs of the family. It’s interesting that 92% of FO leaders believe the most successful FOs have external hires in key leadership positions.
What your FO will include depends on with your goals, so it’s important to consider them before you set one up (or start searching for a suitable MFO), and then to review against goals regularly.
The stuff everyone seems to look for are financial and investment services, but it’s hard to truly differentiate in those services.
The most ‘value’ you will actually get from FO services are the things that are the hardest to measure: creating continuity, cohesion and engagement across families for generations, helping the family define its purpose, and promoting family unity, harmony and happiness.
The rising importance of sound formalized investment management governance goes hand-in-hand with enhanced family governance.
Consider This: Does your family office have clearly articulated goals (both financial and non-financial)? How often do you measure performance against those goals? How often do you review the goals to ensure they are relevant to the family as it evolves?
Original articles:
- How A Family Office Can Uncover Goals With A Family Meeting
- How To Build A Family Office
- Family Office: To Keep It In The Family Or Not To Keep It In The Family, That Is The Question
- The Future of Family Offices in Asia: the Rise of Governance
- Do I Need a Family Office? A Guide for the Rich and Not So Famous
- The rising importance of social capital for family offices
- Why family offices must think beyond money: importance of family governance
- How To Decide What Your Family Office Should Outsource
Here is more on reading on Family office(s).
