What is a multi family office?
A multi family office is an entity that supports the financial and nonfinancial needs of a specific family or group of families. It typically offers services in at least eight or nine categories including balance sheet consolidation, integrated tax planning, investment strategy and implementations, risk management, lifestyle management, estate planning, family education, and philanthropic planning.
Are there different types of family offices?
Yes—there are two main types of family offices: Single-Family Office (SFO)—set up to serve the needs of an individual family. Research by the Family Office Exchange (FOX) indicates that in most cases, it makes financial sense for a family to start and staff their own family office only if they have liquid wealth in excess of $ 50 million.
Multifamily Office (MFO)—which serves the needs of more than one family, combining resources and sharing costs for efficiency.
At what point does it make sense to use a multi family office?
Wealthy families use multi family office for many reasons. Sometimes a liquidity event such as the sale of a family-owned business triggers the need to manage complex intergenerational issues. Other goals include:
- Having one centralized source of information for all the family’s financial matters
- Pooling purchasing power across a family group
- Having a dedicated team of professionals who address family goals in a confidential manner
- Ensuring continuity from generation to generation on issues of family heritage, family trusts, family values and family philanthropy
- Having access to professional advisors who can educate family members about the responsibilities of wealth
Will I lose control by outsourcing my wealth management?
You may find that outsourcing your wealth management gives you even greater control. Rather than having to spend time overseeing the family office, Alpha Capital gives you more time to focus on other priorities in your life. Multifamily offices are also likely to have detailed security processes in place—regulatory audits, financial audits, managerial risk assessments and more—to protect your interests and provide you with complete oversight of your accounts. And as your needs change, you have more flexibility to quickly add, eliminate or modify services than you would do otherwise.
What about the advisors I have now; how do they fit into the picture?
Unlike other firms, Alpha Capital can integrate your current advisors—along with leading third-party professionals and our own internal specialists—and work together as one unified team. This approach gives you the opportunity to choose best-of-class providers for every aspect of your wealth management strategy.
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