Why it makes sense to be part of a Multi Family Office
For a HNWI (a high net worth individual) it can definitely make sense to become member of a Multi Family Office. These Offices are usually managed by very experienced asset managers, and provide a substantial network. As a member you will gain contact with other HNWIs or entrepreneurial families, strengthen your professional network, or gain possibilities for future business deals or lucrative investments. Multi Family Offices also offer the possibility to become part of a club deal, where a homogenous circle of investors pool capital to realise the acquisition of premium assets, for example, prime real estate. These deals are not offered if you are just another client at your (private) bank where the attention of an asset manager is split among many more wealthy clients. On the other hand, in relation to a Single Family Office, where you have asset managers only structuring and managing your assets, the costs of a Multi Family Office are much lower, since you share your managers with other wealthy families.
This is the minimum fortune of a HNWI person to join a Multi Family Office
Usually Multi Family Offices do not have an explicit financial threshold to become eligible as a member. Regarding our experience, the usual fortune of a person to join a Multi Family Office are 8 digits or more. This is an amount of capital when it makes sense to pay specialists and highly qualified asset and tax managers to help you most effectively to structure and manage the family or personal fortune. Some Multi Family Offices also allow people with a lower net worth to join a Multi Family Office, but this remains the exception. Lower entry requirements sometimes occur in bank-related Multi Family Offices, when banks open their own Multi Family Office to retain wealthy clients. On the other end are also no limits, specialised and very wealthy family offices have even much higher entry barriers or only allow invited members to join their office. Since Multi Family Offices are not a protected term, therefore everyone can open one, making it harder to get to a clear cut definition.
How to become part of an exclusive Multi Family Office in Europe?
The usual process is to reach out to a Multi Family office as a wealthy client and to engage in a conversation about how you want to structure your assets. Depending on your strategy, your fortune and also the capacity of the Multi Family Offices you can reach a joint conclusion it makes sense to join or regarding your needs you are better served at a traditional bank or a private bank. Depending on if you want your assets actively managed or rather prefer only an advisory role of the Multi Family Offices there are a great variety of alternatives to reach out to. Our lists, the links you can find below this article, help you to find the adequate Multi Family Office, which best serves your needs. Some Multi Family Offices are closed for new members, in these cases, it is not possible to join them.
Photo source: Austin Distel