The purpose of a family office has been saved
The purpose of a family office
Managing family wealth effectively
The family office is a dedicated solution for the complex management of the family wealth. It is a vehicle that supports the family in the day-to-day administration and management of the family’s affairs and long-term strategy.
Family wealth is a very specific and complex type of wealth in terms of management. It does not only concern the business itself, but also concerns managing liquidity ratios, private equity investments, stock portfolio investments, debt structures, and even privately used assets. It therefore requires a very specific approach. A family office is a dedicated vehicle to support the family.
Why set up a family office?
There are five reasons why a family should consider setting up a family office:
The most important reason is that it is personal. A family office is tailor-made and — in contrast to other service providers — only works for one client, the family.
It also serves privacy. A family office allows a family to have all personal information in one secure place and accessible by only a limited number of people. The family office can therefore serve as the guardian and gatekeeper of the privacy of the family.
Prosperity is the third reason. As family wealth is spread over several family members of different generations with different needs, there will always be a need for a balance between wealth creation on the one hand and the financial needs of family members on the other hand.
Perpetuity. Family wealth usually serves a specific purpose. The family office can help the family in defining a clear family purpose and therefore support them in creating a legacy across the different generations.
Finally, a family office is also created to establish more professionalism. There clearly is a trend for families to manage their wealth in a very professional way, as a business on its own, with a dedicated team of experts. As family wealth and family businesses are getting more international, professionalism is key.