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From Wikipedia, the free encyclopedia

A family office is a private company that manages investments and trusts for a single wealthy family.[1] The company's financial capital is the family's own wealth, often accumulated over many family generations. Traditional family offices provide personal services such as managing household staff and making travel arrangements. Other services typically handled by the traditional family office include property management, day-to-day accounting and payroll activities, and management of legal affairs. A family office can cost over $1 million to operate, so the family's net worth usually exceeds $100 million. Recently, some family offices have accepted non-family members.[2]

More recently the term "family office" or multi family office is used to refer primarily to financial services for relatively wealthy families.[3]

Traditional and modern usage

A traditional family office is a business run by and for a single family. Its sole function is to centralize the management of a significant family fortune. Typically, these organizations employ staff to manage investments, taxes, philanthropic giving, trusts, and legal matters. The purpose of the family office is to effectively transfer established wealth across generations. The family office invests the family's money, manages all of the family's assets, and disburses payments to family members as required.

The office itself either is, or operates just like, a corporation (often, a limited liability company, or LLC), with a president, CFO, CIO, etc. and a support staff. The officers are compensated as per an arrangement with the family, usually with overrides based on the profits or capital gains generated by the office. Often, family offices are built around core assets that are professionally managed. In addition, a more aggressive and well-capitalized office may be engaged in private equity placement, venture capital opportunities, and real estate development.

Private company multi-family offices are now opening to provide the same menu of personal services that a single wealthy family obtains from its own family office. Some of these multi-family office are housed in law firms and public accounting firms. Others are either stand-alone or are outgrowths of a single family's office.

The main source for finding a list or family office database is FamilyOfficeDB - [www.familyofficedb.com].

Notes and references

  1. ^ Douglas, Craig M.; Todd Wollack (2007-06-08). "Case highlights family office risk". Boston Business Journal. http://boston.bizjournals.com/boston/stories/2007/06/11/story1.html. Retrieved 2007-06-27.  
  2. ^ Frank, Robert (2004-06-10). "How to Bank Like a Billionaire". The Wall Street Journal (Dow Jones). http://webreprints.djreprints.com/1005380530169.html. Retrieved 2007-06-27.  
  3. ^ Wakem, Maria (2005-03-22). "Family Matters". wallstreetandtech.com. http://www.wallstreetandtech.com/showArticle.jhtml?articleID=159904336. Retrieved 2007-06-27.  

5. Geller Family Office Services Article: Evaluating a Multi-Family Office [1]
6. Geller Family Office Services

See also

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