Why Establish a Family Office?

What is a Family Office?

A Family Office (FO)  is a private vehicle established to look after the investment, legal, tax, and risk management matters that face a wealthy family. The FO synchronizes all aspects of a family’s financial life by coordinating multiple professional advisors such as accountants, attorneys, bankers, investment advisors, insurance professionals, etc. The dynamic changes resulting from a liquidity event or generational transfer make it an especially compelling time to evaluate the establishment of an FO. The FO can operate in one of two ways. It can use a formal legal structure (i.e., a pooled asset approach). Alternatively, the FO can operate in function only (i.e., no separate legal entity pooling assets, but resources can be shared by individual family members).

What is the primary benefit of having an FO?

The FO provides economies of scale by leveraging the investment buying power of the family members. Further, the FO possesses a detailed knowledge of the family’s collective and individual assets. Lastly, the FO allows the family to have a consistent, single point of contact who provides them with unbiased management of their financial affairs (i.e., there is no incentive to push a particular firm’s products).

Why would I hire Family Office Services to oversee my FO?

Our Managing Member, James Stevens, has more than twenty years of family office and investment experience. He possesses a passion for serving people with excellence. Please see the About page for greater background detail.