Why a family office is a good way for professional services to do business
Family offices have been a rising trend for a while now, globally. Estimates from 2018 tell us that there are more than 10,000 of them in the world, a ten fold increase over 2008 figures.
However, the number of them doesn’t mean much to a professional service firm like yours. What will interest you is the fact that they hold a collective wealth of more than $4 trillion, which is around $400 million per office! Naturally, the numbers differ significantly from firm to firm, but this is still an impressive amount for a single line of business.
The numbers tell us that family offices hold something that might be of use to a professional like you. That’s why we wanted to give you an overview of what they are and why single-family offices can be a great way for a professional services firm to do business.
What is a family office?
Family offices are private wealth management firms that tend to serve high-net-worth investors. However, they are called family offices because they tend to deal with finances and investments of entire families.
This is a typical family office, but they can offer a much wider variety of services, and many of them do. That’s precisely why many have troubles properly explaining what a family office is. The services they tend to offer are insurance, budgeting, wealth transfer, tax services, charity, and much more – those services and advice that a family needs, right through their multi-generations.
It’s important to realise this, because that’s what makes them useful to a wide variety of professionals. On top of that, there aren’t many regulations that can stop a professional services firm from using the title. But why does this matter for you? What makes family offices truly useful to a professional like yourself?
Why is it good to operate a family office?
We’ve already stated how wealthy family offices are today and how the trend of having a business that operates as a family office keeps on growing. This mostly stems from the fact that they are derived from the needs of the family and their very nature attracts high-value clients. These families often have a multi-generational business or wealth, are fostering leadership skills in the next generation, have succession issues and business re-growth plans, and need a variety of services and support to continue as a successful family.
If you want to learn more, feel free to reach out to us.