Managing significant personal and family assets today is a complicated business, which can be time consuming, fraught with politics and ultimately more than most busy people today are able to, or care to, juggle. As a result, wealthy families often end up with a complex web of advisors, employees and consultants and communication can become a challenge.
ENTER THE “FAMILY OFFICE.”
A family office is a fast-growing category in wealth management where an entity is set up to employ individuals whose only job is to serve a single family’s needs in a mix of functional areas such as investments, lifestyle management, tax and trust compliance, comprehensive risk management and transition management. Family offices are custom built based on the unique needs of the family, and can emphasize different functional areas depending on the family’s desires.
The need for family office-type entities has been driven both by growing complexity and the increasing concentration of wealth into the hands of the top 1%. These global family offices, in turn, have strived to collaborate more proactively with each other, ensuring affluent families can idea-share and benefit from one another regardless of where they are physically located. Families will sometimes band together under one entity, the multi-family office, to ensure that their wealth management needs will be addressed by elite, loyal and well-resourced professionals who understand how to cross-pollinate opportunities and best practices across families.
We recently spoke with founder Paul Morelli and his partner Eric Mendez, from the multi-family office Vernal Point Advisors (VPA) in San Francisco, to better understand the role of a multi-family office in meeting affluent families’ needs – not least in relation to the families’ real estate portfolios. To see what they said click here and view the full article beginning on page 53.