The Rising Popularity of the Family Office

​Several of the world’s wealthiest families - whether old money or new - face challenges of managing their empires at different scales. Changing markets, turbulent economies, and globalised societies bring forth increasingly complex financial affairs for family dynasties to navigate. To survive and thrive through rapid economic forces, UHNW individuals look for ways to efficiently manage and keep their hard-earned wealth – services often provided by a business model known as the Family Office.

Family Offices through the ages

Family Offices offer specialised, discreet administrative services to manage the financial and personal interests of wealthy families. The concept might not be new but has evolved in form and function over the years. Some of the earliest references to Family Offices go back to the 1800s, essentially a one-person operation comprising an attorney or bookkeeper. Years later, this function would become what we now know today as an investment manager.

However, hiring investment managers have lost favour since returns have fallen in the last decade. Wealthy families show an increasing preference for the Family Office model. Having all family affairs managed in one place where executives report directly to family members is an appealing prospect – especially as concerns about data security increase.

Contemporary Family Offices

Today’s Family Offices have multiple staff and a mix of internal and external advisors - each with specific areas of specialisation. Modern-day Family Offices offer solutions to mitigate volatile market conditions. Some firms may serve just one family (Single-Family Offices) while others cater to the needs of several ultra-high-net-worth families (Multi-Family Offices).

Family Offices so much more than wealth management firms. They function as self-contained ecosystems for UHNW individuals to manage their assets and enjoy their lifestyles.

John Sounders, Co-founder and Managing Partner of the esteemed multi-family office Sanderling Capital in Dublin means that the rising popularity has to do with UHNW families’ complex lifestyle that demands a one-stop-shop that can handle all their requests, whether those are connected to business or leisure. In addition, he feels that the demand for personal long-term relationships has increased. “A lot of our UHNW clients express their appreciation for the trust they can put in our team. The families build relationships that span generations, with a professional team who get to know them on a personal level. Today this type of relationships matter, especially since our clients and their families let us support so many different aspects of their lives.”

As John Sounders explains, along with expert financial and investment solutions, Family Offices offer a plethora of personalised services. Depending on the family’s needs, these could include managing financial portfolio, succession planning, looking after philanthropic interests, advisory on business or investments, and other tasks like employee payroll or concierge services. This gives the Family Office a significant edge over traditional wealth management firms.

Family Offices go beyond traditional ideas of wealth managers or ordinary concierge services. What makes them unique is a holistic approach to effectively managing a client’s wealth and personal affairs. The rise in popularity can clearly be connected to this comprehensive approach and the foundation of relationships and trust over multiple generations; as opposed to just working for families, the spirit of a Family Office is that you work with them.

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