The concept of a family office evokes images of unparalleled financial sophistication and personalized service. Ask ten people about what a family office is, and you will receive ten different answers. This diversity speaks volumes about the customization and the value that a family of- fice can provide. While the conventional single-family office—a dedicated enterprise man- aging the wealth of one ultra-high net worth family—remains the gold standard, the family office concept has evolved to offer a spectrum of bespoke solutions. These solutions provide holistic oversight of a fam- ily’s financial world, viewed through an objective and discerning lens. In addition to a traditional single-family office, which can be cost-inten- sive and an administrative burden, other options exist that provide many of the same benefits to appeal to a broader spectrum of wealth: • Multi-Family Office: a firm that serves a group of families, offering a comprehensive range of services while leveraging economies of scale and providing access to specialized expertise at an optimized cost. • Virtual Family Office: an innovative model where premier external advisors and service providers come together to function like a fam- ily office, minimizing overhead while maintaining exceptional service quality. • Wealth Management Firms and Private Banks: these institutions offer many of the same services as traditional family offices, often with a global reach and centuries of expertise. • Hybrid Model: a bespoke approach that combines in-house staff with outsourced specialists, tailored to the unique needs and preference of each family. Family office growth has been on a rapid upward trajectory since 2008. They have more than tripled between 2019 and 2023 alone, growing from 1,285 to 4,592. This remarkable expansion underscores the in- creasing demand for sophisticated wealth management solutions. While official statistics primarily reflect the trends of prominent single and multi-family offices, the proliferation of virtual and hybrid options suggest a similar growth trajectory. This rapid expansion highlights the increasing popularity and relevance of family offices among wealthy individuals and families. Family offices offer a comprehensive suite of services tailored to the unique needs of a family. These services typically include, but are not limited to: • Investment Management: Developing and implementing sophisticated investment strategies across a diverse range of asset classes. • Financial Planning and Reporting: Providing detailed financial analysis, budgeting, and regular reporting on the family’s overall financial posi- tion. • Tax Planning and Compliance: Offering strategic tax advice and ensur- ing compliance across multiple jurisdictions. • Estate and Succession Planning: Designing and implementing strate- gies for efficient wealth transfer across generations. • Philanthropic Advisory: Assisting in the creation and management of The Bespoke World of Family Offices: Elevating Wealth Management to an Accessible Art Form
By MICHELLE HOOTON Senior Manager & Family Office Practice Lead Geffen Mesher
charitable foundations, impact investing, and strategic giving initia- tives. • Risk Management and Insurance: Assessing and mitigating various risks through appropriate insurance coverage and other risk manage- ment strategies. • Lifestyle Management: Offering concierge services, including domes- tic payroll administration, property management, travel planning, and personal security arrangements. • Family Governance and Education: Facilitating family meetings, de- veloping family constitutions, and providing financial education for younger generations. The allure of family offices is undeniable, offering a suite of benefits that resonate: • Time savings and efficient, consolidated oversight: By entrusting ad- ministrative tasks to seasoned professionals, family members are free to pursue passion projects or focus their efforts on building strong businesses, pursuing philanthropic goals, or leaving a unique mark on the world. • Enhanced Family Legacy Planning: The centralized hub of informa- tion fosters transparency, trust, and consistent communication about wealth and family values, ensuring a lasting legacy. • Seamless Advisor Coordination: Family offices orchestrate the efforts of elite professional advisors—legal counsel, accountants, bankers, and investment managers—ensuring cohesive wealth management and proactive strategy implementation. • Uncompromising Privacy and Risk Management: The family office serves as a trusted fiduciary, mapping the client’s world with integrity and discretion. As gatekeepers of sensitive information, they master- fully manage privacy concerns and mitigate risks. Embracing a family office approach elevates wealth management and financial oversight to an art form, providing unparallelled efficiency, su- perior information flow, and allowing individuals and families to focus on strategic decision-making rather than day-to-day administration. A family office is not merely a service—it is a transformative partnership that redefines the landscape of personal wealth management. Sources: https://www.forbes.com/sites/josipamajic/2024/01/11/the-rise-and-rise- of-the-family-office-an-analysis/ https://www.familywealthreport.com/article.php/New-Preqin-Report- Shows-Rise-In-Family-Offices Michelle Hooton, CPA, leads Geffen Mesher’s family office practice with over 20 years of experience in family offices. Her career began in a sin- gle-family office, managing complex financial affairs across four gener- ations. In 2013, Michelle joined the Portland-based accounting firm with over 90 years of experience servicing a variety of clients nationwide. More information at: gmco.com/service/family-office/
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