Family office
A family office is a
Family offices also may handle tasks such as managing household staff, making travel arrangements,
A family office either is, or operates just like, a
History
The firm
In 2007, the case of the Ayer family office highlighted family office risk when a "family confidant allegedly siphoned about $58 million away in a few years."[9]
Under the
Family offices became more common in years since 2010 after the rapid increase in valuations of technology companies led to many people having newly created wealth.[6] Also in 2010, the academic Journal of Family Business Strategy was launched by Torsten Pieper to "publish research that contributes new knowledge and understanding to the field of family business."[16]
According to a 2015 report by the Financial Times, the label "family office" was increasingly replaced by other business names, such as "private investment office", with services in relation therewith called "private company services" or "strategic philanthropy advice".[17] Globally in 2015, one source numbered 79,000 families that controlled roughly $19 trillion in assets.[17]
In January 2021, it was revealed that Leon Black paid Jeffrey Epstein $158 million over the period from 2012 to 2017 for family office tax advice.[18]
In spring 2021 the implosion of
Traditional and modern usage
A traditional single family office is a business run by and for a single family. Its sole function is to centralize the management of a significant family fortune. Typically, these organizations employ staff to manage investments, taxes, philanthropic activities, trusts, and legal matters. The family office invests the family's money, manages all of the family's assets, and disburses payments to family members as required.[24]
According to Spear's Wealth Management Survey in 2022, "Family offices are private companies that support a number of functions for wealthy families including the smooth running of day-to-day affairs as well as more complex matters involving wealth management and strategy. These issues are particularly important for families with assets and interests in multiple jurisdictions."[25]
In June 2008,
Family office types
Over the past few decades, family office landscape evolved significantly. Despite different regional laws and regulations, modern family offices strive to manage the family wealth individually, which results into various organisational and governance structures. Currently, three main types of family offices are recognised:
Single family office
These enterprises are almost always structured as stand-alone business entities.[28] They are dedicated to managing wealth of a single family. The benefits of single family office are services that are highly tailored to families' needs and values, including legal compliance and aligned investment philosophy. On the contrary, this entity is expensive to run and is mostly suitable for families with a significant wealth.[29]
Multi-family office
Compared to single family offices, multi-family offices serve two or more affluent families. Although their services are not as compound, they are becoming a popular and attractive option for families and individual wealth owners with less complex needs. Many multi-family offices were eventually built on the single family office base but later started expanding and offering their services to more than just one client. Key advantage of joining multi-family office is its cost saving efficiency.[30]
Virtual family office
For families that are spread across geographies, virtual family office is a popular option. With the growth of family office technologies, families can efficiently work remotely while remaining a cost effective solution.[29]
Notable family offices
- Archegos Capital Management
- Ballmer Group
- Bayshore Global Management
- Bessemer Trust
- Bezos Expeditions
- Cascade Investment
- DFO Management
- Dubai Holding
- Edipresse
- Emerson Collective
- ICONIQ Capital
- Kirkbi
- Mayfair Vermögensverwaltung
- Mousse Partners
- Robert Wood Johnson Foundation
- Soros Fund Management
- Spell Capital Partners
- Vulcan Inc.
- Whittier Trust Company
- Willett Advisors
- Winklevoss Capital Management
See also
References
- ^ "EY Family Office Guide" (PDF). Ernst & Young. 2017.[permanent dead link]
- ^ Frank, Robert (June 10, 2004). "How to Bank Like a Billionaire". The Wall Street Journal.
- ^ "Family Offices". Investopedia.
- ^ Hawthorne, Fran (March 18, 2008). "The Family Office, Granting Every Wish". The New York Times.
- ^ KOLESNIKOV-JESSOP, SONIA (September 6, 2011). "Setting Up an Office to Manage a Wealthy Family's Affairs". The New York Times.
- ^ a b Das, Anupreeta; Chung, Juliet (March 10, 2017). "New Force on Wall Street: The 'Family Office'". The Wall Street Journal.
- ^ "Defining 'Family Office'". Familyofficecouncil.com. September 15, 2013.[permanent dead link]
- ^ Steinberg, Julie; Greene, Kelly (May 17, 2013). "Financial Advice, Served Rare". The Wall Street Journal.
- ^ a b Douglas, Craig M.; Wollack, Todd (June 8, 2007). "Case highlights family office risk". American City Business Journals.
- Barron's.
- ^ "Opalesque BACKSTAGE Video-Terry Beneke: What attracts family offices to alternative investments". Opalesque. 30 April 2010.
- Houghton Mifflin Company.
- ^ Scheiber, Noam; Cohen, Patricia (December 29, 2015). "For the Wealthiest, a Private Tax System That Saves Them Billions The very richest are able to quietly shape tax policy that will allow them to shield billions in income". The New York Times.
- ^ "SECURITIES AND EXCHANGE COMMISSION : 17 CFR Part 275: [Release No. IA-3220; File No. S7-25-10]" (PDF). U.S. Securities and Exchange Commission.
- ^ "Comments on Proposed Rule: Family Offices". No. [Release No. IA-3098, File No. S7-25-10]. US Securities and Exchange Commission. 25 May 2011.
- ^ "Journal of Family Business Strategy - About the journal". Elsevier B.V. Retrieved 3 April 2021.
- ^ a b Warwick-Ching, Lucy (21 October 2015). "Cascade Investment, Bill Gates' wealth manager". The Financial Times Ltd.
- ^ Paulden, Pierre; Steverman, Ben (26 January 2021). "What Leon Black Got for Paying Jeffrey Epstein $158 Million". Bloomberg News.
- ^ a b Fedor, Lauren (5 April 2021). "US Senate banking chair queries Credit Suisse and other banks on Archegos". The Financial Times.
- ^ "govinfo". www.govinfo.gov. Retrieved 2021-08-15.
- ^ "ICYMI: Commissioner Quintenz in Bloomberg: Family Offices Don't Need New Regulations | CFTC". www.cftc.gov. Retrieved 2021-08-15.
- ^ "Regulating Family Offices Is Not the Answer By Bill Woodson". 2021-07-30. Retrieved 2021-08-15.
- ^ Quintenz, Brian & Peirce, Hester (June 24, 2021). "Family Offices Don't Need New Regulations". Bloomberg.com. Retrieved 2023-12-28.
{{cite web}}
: CS1 maint: multiple names: authors list (link) - .
- ^ https://spearswms.com/the-best-family-office-advisers-uk/ - accessed Dec. 29, 2022
- ^ "SFOs in Action: How the Richest Families Manage Their Wealth". Wharton Alumni Magazine. 1 June 2008.
- ISBN 978-1-349-30332-8.
- ^ "A Simple guide to family office structure". Simple. Retrieved 2022-09-12.
- ^ a b "How to start a family office | A Simple Guide". Simple. Retrieved 2022-09-12.
- ^ "What is a multi-family office? | A Simple Guide". Simple. Retrieved 2022-09-12.