A Family Office by Any Other Name…

Abstract

This article proposes an explicit definition for a family office that is role- (not services-) based. Despite the fact that the term “family office” has been co-opted by the traditional financial services industry in its marketing and positioning efforts, it may be unwise for a wealthy family to assume if they are seeking a true family office experience and set of services, they will receive it from a traditional wealth management firm just because it calls itself a family office. Rather than a list of services-based definitions, we use a definition of family office based on the role it plays for a wealthy family: a team of advisors that exclusively serves and represents the interests and agenda—broadly defined—of the family. The article discusses the different kinds of family office solutions available to wealthy families, how they can tell the differences, and why a traditional financial services company may not be able to provide a family office solution.

TOPIC: Wealth management