Finding and Retaining the Right Advisor for a
Family and Its Family Office

Abstract

In contrast to the first decade of this century—called by some “The Decade of Excess,” this next decade could be the “Decade of Due Diligence.” Typically, families and their offices seek new advisors via “word of mouth”—obtaining recommendations from other families, or from their current advisors, particularly lawyers and accountants. There are three serious risks in this method: The right advisor for one family with specific needs and objectives may be inappropriate for another with a different set of needs and objectives. The recommender may also lack knowledge about what it takes to be a great advisor in a particular discipline. Finally, he or she may have a limited circle of possible recommendations that could impact objectivity. This article addresses the essential features of an effective approach to finding the right advisor in any field of discipline and the building blocks to design a successful advisor selection process for families and their family offices.

TOPICS: Wealth management, manager selection