Multi Family Offices are not only offering Asset Management and Wealth Management services, as we saw when analyzing more than 400 MFOs in Europe. We put together the most important and common offerings of European family offices and divide the list into financial and non-financial family office services.
Financial Family Office Services
#1: Asset Management
Asset and portfolio management is one of the most common family office services offered by MFOs in Europe and across the world. High net worth individuals and wealthy families consult experienced asset managers in order to manage and increase their wealth.
#2: Real Estate Investment
More and more multi family offices are looking for alternative investments in order to generate positive returns. One of the most relevant categories in this regard is real estate. Thus, the trend towards real estate investments is not only visible within the single family office universe but also across leading multi family offices.
#3: Private Equity Investment
In order to generate high returns, multi family offices need to go far beyond classical asset management. This is why private equity is being considered as an important asset class by numerous family offices. If you are interested in the interconnection between multi family offices and private equity, this article might be of special interest.
#4: M&A Advisory
Most of the multi family office clients are entrepreneurs or belong to an entrepreneurial family. Hence, selling or buying companies is not uncommon for the people that trust MFOs. Most of the family offices employ M&A experts which were working for investment banks and M&A boutiques beforehand.
#5: Venture Capital Investment
In the last couple of years, venture capital became one of the most-observed asset classes. Huge investment rounds in startup hubs such as the Silicon Valley, China and Europe lead to rising expectations about the return that is associated with the financing of young, promising companies. Multi family offices are offering access to venture capital investments as co-investors or through the set-up of funds directed towards the financing of young startups.
#6: Risk Controlling
When multi family offices are choosing the right investment approach for wealthy clients, the main task is to determine the risk-return-ratio. After deciding on a certain investment strategy, it is important to steadily watch the risk associated with the current positions in the portfolio and if it matches the clients’ RR-profile. A main indicator for risk is for example the value at risk.
#7: Portfolio Monitoring
It is essential to steadily observe the portfolios of the family offices’ clients. Especially special situations like economic crises require a high degree of attention. The results of the monitoring are delivered through monthly, quarterly or yearly reports.
#8: Tax Advisory
When it comes to tax advisory, some people only think of on- and offshore tax evasion. However, tax optimization is a topic, many multi family offices are concerned with. Making contact to the best tax advisors who deal with a certain topic, is one of the most common tasks MFOs are dealing with.
#9: Cash Flow Management
Especially for larger families it is important to satisfy the monthly cash needs of the family members. Family offices can manage this through liquidity planning and management.
#10: Property Management
During the holding phase of real estate assets, more and more multi family offices act as the owner’s representative. This includes the repositioning of the real estate in problem situations, project development and formulation of conversion concepts, property valuation and other classical portfolio and asset management tasks.
#11: Tenant Management
For investors looking for stable and secure return, residential properties are one of the most popular asset classes. However, often times the tenant and resident management is time-consuming and effortful for many real estate investors. That is why multi family offices that are concerned with real estate issues increasingly offer tenant management services in order to minimize the problems that are upcoming regularly.
#12: Succession Planning
A large number of European high net worth individuals gained their wealth through entrepreneurial activities. When the time has arised to change the stearing wheel of the family company, some multi family offices are the right counterpart to deal with that topic. Options may be to look for a buyer of the family company or the right person to head the family business.
Non-Financial Family Office Services
#13: Legal Advisory
In the circles of high net worth families there is often a necessity to deal with complex legal issues. In those situations it is good to have the counselling of your multi family office. Many MFOs maintain contacts with top-notch laywers in multiple areas.
#14: Luxury Good Procurement
Often it is complicated to aquire luxury goods that are particulary in demand such as the latest Gucci bag or a classic A. Lange & Söhne watch. In this cases, some multi family offices use their worldwide network in order to procure sought-after luxury goods in a swift manner.
#15: Education Planning
Most high net worth individuals enjoy a high level of education. Many successful personalities were able to do their MBA in Harvard, study Economics in Cambridge or optain a PhD from Stanford. In order to allow their kids to go the same educational path, many HNWI attach great importance to the education of their children. Some multi family offices employ staff that is specialized in accomodate your successors in the world-best schools and universities.
#16: Driver & Chauffeur Management
It may be an exhausting task to organize your rides or the rides of your family, especially when you are active in multiple cities. Some multi family offices are offering to take care of your chaffeur services.
#17: Home Staff Management
Indeed, home staff management is not relevant for every wealthy family. Leading a good relationship with the most intimate personnel is of utmost importance for many high net worth individuals. However, it might be a good idea to have an independent person to look after your staff and take care of upcoming administrative tasks. This is where some multi family offices come into play.
#18: Gift Organisation
Imagine you are working day and night but the next dinner party of an important business contact is imminent. You should not go without a high-class gift that will be kept in mind. But how to organize the perfect present if there is hardly any time for strolling around? Your multi family office could be the solution you have always been waiting for.
#19: Travel Planning
Travel planning is a perfect example for non-financial family office services that are offered by some MFOs in Europe and around the globe. For sure, you do not need a multi family office in order to organize your next family trip. However, booking the most exclusive resorts, organizing the best lunch in town and planning the perfect sunset dinner belong to the tasks that a few multi family offices offer.
#20: Art Management & Advisory
Art is not just an asset class, it is an important part of a society’s culture and history. This is why art historians are not only working for museums and galleries but are also advising wealthy families in buying pieces of art. More and more multi family offices are active in this field as well, as they saw the rising demand for professionell art connoisseurs within the wealthy elite.
#21: Yacht Management
For sure, yacht management might seem a bit over the top. However, numerous multi family offices are offering yacht management for a good reason. When it comes to yachts, the highest costs are associated with maintenance and other running costs. Hence, professional yacht management does indeed make sense for HNWI.
Picture Source: Annette Schuman
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