Rachel Silverman of The Wall Street Journal surveys the results in Family Office Hunting:
A family office traditionally was a small company built solely to manage the fortunes of a super-rich family, like the Rockefellers. A dedicated staff not only managed money, it also typically provided a variety of softer services, such as arranging vacations and personal security, and educating family members about their wealth.As a marketing aid, the family-office concept is a godsend. This service model shows wealthy families there is more to coping with their wealth than investment management. They need – and should be happy to pay for – a package of coordinated services.
But in recent years, as investment firms scramble to serve the growing ranks of very wealthy people, the family-office landscape has gotten crowded. Rich families now face a confusing array of options, ranging from banking behemoths to tiny boutiques and technology startups that are all hoping to cash in on the family-office cachet.
Can these services be provided at full potency by organizations not under family control?
Will the faux-family-office concept self-destruct by moving down-market too fast?
Or will this attractive model for serving wealthy families prove so compelling that it reshapes the financial-services industry?
All comments or theories gratefully received.
2 comments:
Yes, yes and yes.
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