Benefits of A Multi-Family Office (MFO)

Families and individual private investors sometimes decide not to set up their own family office because they do not want to be responsible for managing a financial services business. They prefer the continuity offered by an established institution where they can evaluate the quality of financial services before they choose to become a client. The difficulty in selecting an external financial office lies in identifying the questions to ask potential service providers and in interpreting their answers.

As an alternative individuals and families with assets over $20M can join Multi-Family Offices (MFOs) or a financial institution with a dedicated wealth management specialization. Multi-Family Offices have historically provided HNW families with comprehensive financial services and confidentiality not available from larger, product driven financial institutions. While all the benefits of MFOs are not yet evident, families who participate find they have most of the advantages of dedicated offices. Here is what we have observed:

• Participating families have access to a wide array of integrated services that are not collectively offered anywhere else.
• Families participate in the cost savings and the benefits of group purchasing power.
• These families find they maintain more direct family control over financial matters.
• They have the assurance of confidentiality in the management of financial and personal affairs.
• They have the satisfaction of affiliating with an organization with goals that are aligned with those of their family.

Value Added by Family Office Concept

• Comprehensive assessment of financial goals
• Customized solutions/strategies for each household
• Proactive management of client affairs
• Ongoing education about responsibilities of ownership
• Focus on the continuity of the family across generations and branches
• Shared purchasing power across the family group

Value Added by Multi-Family Office Concept

• Financial quarterback supported by specialists in each field
• Teams of qualified professionals who can collaborate
• Continuity of service if quarterback leaves
• Experience in managing generational transitions
• Better risk management policies and procedures
• More comprehensive information systems
• Relationship pricing for inter-disciplinary services

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