NEWS AND INSIGHTS FROM FINTRX
Multi-family offices have rapidly advanced over the past several years, essentially reforming the mechanisms and efficiency of asset management. While this transformation continues to add value for high-net-worth families and individuals around the world, this unparalleled expansion has added a new level of complexity to an already obscure space. In an effort to shed light on the family office space, we have provided a number of questions and answers to help clarify some underlying assumptions regarding multi-family offices.
In a general sense, multi-family offices are private organizations comprised of qualified and well-respected professionals with extensive experience in providing a range of wealth management services to numerous unrelated high-net-worth families and individuals.
As opposed to single-family offices, which manage the financial and personal affairs of one family or individual on a case-by-case basis, multi-family offices provide capital management services to a number of unrelated families or individuals. Some can be seen managing up to a hundred client portfolios at any given time. Because multi-family offices govern the wealth for various clients, their attention is focused largely on wealth management versus a full suite of services.
- Generally larger than single-family offices
- More of a structured working environment
- Clearly defined employee roles
- Evolving client base
- Less expensive
While the transformation of single and multi-family offices continues to add value for high net-worth families and individuals, it is important to understand the key subtleties between the two.
There are a few considerations to consider before utilizing the services of a multi-family office. Doing so will help determine the most optimal selection for you and your family.
- Strategic objectives & long-term goals
- Types of services needed
- Net assets
- Desired communication methods
With greater wealth comes greater financial complexity - especially in regard to high net-worth families. A family may be more apt to join a multi-family office to save on costs or to access greater financial expertise. The choice also depends on the net amount and level of control the family wishes to maintain. These families are typically seeking a provider with no conflict of interest, enhanced service provision, and improved adaptation. Free from institutional mandates, intermediaries, and other standard due diligence procedures, multi-family offices provide greater freedom and flexibility to allocate capital in a way that aligns with the values and desires of each family.
As with any vertical dealing with the ultra-wealthy, multi-family offices are unique in their structures, as they are entirely driven by the varying needs of the families they serve. Each has its own processes and organizational structures and tends to employ more of an institutional approach. Multi-family offices are continually developing their operational structures to align with the unique needs of wealthy families.
- Private Lawyers
- Fund Managers
- Tax & Trust Specialists
- Accounting & Financial experts
- Real Estate Professionals
- Senior Bankers
- Executive Assistants
Multi-family offices are known to offer a specific set of services to a broader clientele, though it all depends on the demands of each family. This is because they themselves control the applicable services put into operation.
- Wealth & investment management
- Asset allocation
- Retirement planning
- Legacy planning
- Tax planning
- Insurance planning
- Charitable giving
- Estate planning
- Risk management
Although there's no industry-recognized level of wealth to be considered a multi-family office, the customizable services provided by a multi-family office are highly valued - oftentimes requiring AUM anywhere from $10 million to upwards of $200 million. At FINTRX, we use $50 million as a minimum AUM requirement to be listed and considered an official family office.
Because the daily operations of multi-family offices differ from client to client, the same holds true for the methods of communication in client relationships. Some families like to have greater involvement with open lines of communication, while others may request quarterly updates.
While Google searches and online browsing can provide some insights, these approaches are often labor-intensive, ineffective, and prone to producing inaccurate or limited information. To make things more difficult, static family office Excel lists available for purchase often have limited or outdated information.
At FINTRX, we understand that credible private wealth data intelligence is essential for businesses that want to succeed in the private wealth market. Our platform is designed to provide users with the most comprehensive and up-to-date data on family offices available. A key feature of the FINTRX platform is an advanced and detailed mapping tool that allows users to visually pinpoint family office data around the globe.
"The reality is, the family office landscape is growing incredibly quickly and becoming more sophisticated by the year. Like anything else when it comes to raising capital and securing an investment, information is power. The need for an ever-moving and intuitive data set in the family office space has never been greater - in a nutshell, that’s exactly what we do." - Russ D’Argento, CEO & Founder of the FINTRX Family Office Platform
We are committed to keeping our end users locked into the most actionable set of family office data and research available in the industry. Our dedicated team of researchers are constantly updating the database to ensure that we have the most current and accurate private wealth data available.
As more capital raisers turn to the space for funding, multi-family offices are finding it more beneficial to become forward-facing, and this trend shows no signs of slowing down any time soon. Going public with their investment criteria, portfolio, and contact information offers an opportunity to gain new partnerships and gives capital raisers access to an unparalleled pool of capital. As wealth continues to grow, there is no doubt that multi-family offices will play an even greater role in the management of substantially wealthy families for years to come.
FINTRX is a unified family office and registered investment advisor (RIA) database that provides comprehensive data intelligence on 850,000+ family office & investment advisor records, each designed to help asset-raising professionals identify, access and map the global private wealth ecosystem. Find relevant decision-makers in a snap with powerful search filters and queries. Uncover the data you need, when you need it and filter through areas of investment interest, AUM, asset flows, intent signals, potential associates and much more. FINTRX sources data from both public and private sources and has a team of 70+ researchers who map, validate and compile data daily to ensure its accuracy.
For additional details and a live walkthrough, request a demo below.
September 26, 2019
Renae Hatcher is a member of the marketing team at FINTRX - focused on delivering targeted & relevant family office and registered investment advisor content to our subscribers.