Family Offices

Family offices are the private firms that manage and supervise the financial aspects of particular rich families. Family offices provide different approach of wealth management as compared to traditional wealth management and advisory firms, because they focus on complete outsourced solutions for managing the investment and return on investment of affluent family or individual. Services offered by most of the family offices are as follows:

  • Tax management
  • Budget setting
  • Insurance policy setting
  • Cash inflow & outflow monitoring
  • Charity management and
  • Family-owned business administration

There are two general types of family offices – single family offices (SFO) and multifamily offices (MFO).

Single Family Office (SFO): Single family offices serve specifically ultra rich families. Traditionally, single family offices focus to provide personal services for managing day-to-day financial activities of an affluent family. Other services handled by single family offices are as follows:

  • Property management
  • Tax management
  • Daily account management
  • Legal affairs management
  • Family governance
  • Investment advice
  • Philanthropic activities management and
  • Succession planning

Multi Family Office (MFO): Multifamily offices are similar to SFO, but the only difference is, like the term suggests, they focus to support multiple families at the same time to manage their financial aspects. MFOs are usually independent organizations, typically providing services to the well-off families. Services often provided by multifamily offices are mentioned below:

  • Risk management
  • Financial counseling
  • Assets management
  • Assets consolidation
  • Investment guides
  • Charity services
  • Trusteeship
  • Tax management
  • Legal affairs management
  • Insurance solutions and much more.

MFOs can be formed from any of the four ways mentioned below:

  1. When single family office allows additional clients (more than one client) to be served.
  2. When SFO merged with another SFO.
  3. When initiated by a panel of experts of investment, tax, or legal affair professionals.
  4. When existing financial institute subsidies the multifamily office division.

At PPM, we have complete database of single family offices (SFO) and multi-family offices (MFO) serving existing clientele of affluent families or individuals, as well as seeking new clients to offer tailor-made solutions.