How are other family offices compensating their employees?

June 4, 2023

Avoid conflicts by choosing long-term, trusted advisors. The conflicts may occur because family business advisers are also involved in the main business of their advisor.

Regularly reviewing how you run your office will help to ensure that it is running smoothly. Try to approach the process as a way to develop a more flexible, successful system rather than one full of rigid rules. Priority should be given to the business’s long-term success and that of the entire family when making decisions. Examine how capital is divided between long-term assets and short-term ones. Make sure you have systems in place that allow easy transfers (liquidity), as your family may need it.

Create documents which clarify the family’s mission, vision, values, goals and objectives. The documents will act as a guide for any future investments and 財產分配 are best drafted with successive generations’ interests in mind.

Finding benchmarks that you can use to make comparisons is important. While it is unlikely that another family office will have the same asset portfolio as yours, you can still find comparable targets by breaking down assets into their types. The family and asset manager will be able to better define the return goals.

A family office is a good place to start if you want to address intergenerational or changing family dynamics. Family office meetings are often used to discuss topics such as business, economics and empowering younger family members. The freedom is greater than at standard business family meetings.

A new platform allows leaders to communicate their dreams for future generations and pass on values that perpetuate family heritage. Families offices are private firms that were set up in order to take care of the finances for wealthy individuals and families. The family office, then, is a wealth management firm that deals with families and individuals who have high incomes. Family offices have been among the fastest growing companies in the world.

In terms of the services provided to wealthy families or individuals, family offices are distinct from traditional wealth managers. Family offices are able to manage the financial and investment matters for the family, but also provide services which may not be directly connected with the finances of the family.

The two most common types of family office are single-family (SFOs), and multi-family (MFOs). Single family offices (SFOs) cater for the individual needs of their clients. Also, they are often involved in non-financial matters besides financial management. They can also take care of aspects such as household and private schooling. MFOs on the other side are typically focused primarily on acting as wealth managers on a business basis. MFOs manage a variety of clients simultaneously and frequently sell services to families that are interested. MFOs will sometimes only accept certain customers and provide their services exclusively to them.