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Selecting the Right Family Office For Your Requirements
132 Views    2018-05-02

Selecting the Right Family Office For Your Requirements

Recent studies predict that several billionaires have risen annually, thus entering the ultra-high net worth category worldwide. These increasing numbers have apparently emerged with the need of proficient financial advising and management services. Therefore, family offices have gained popularity. Julio Lage, from Belvedere Capital Advisor, based in Miami has collaborated with other investment experts to provide wealth management, administrative and lifestyle management services for the UHNW in various locations around North and South America for this very purpose.
Increase in demand for handling the UHNW family assets has led to increase in new firms in the family office industry. Independent financial consultants, trust firms, financial advisors, wealth managers and other organizations have built various family offices around the world to aid the ultra-wealthy in various ways.

Setting up an SFO or joining an MFO, which one to prefer?

A common query that wealthy families have in mind is about the amount of financial capabilities to start a single-family office or join a multi-family office. Many potential UHNW clients have frequently asked Julio Lage this question. This is how he advices his clients.
Any of the choices, between an MFO or SFO, requires an ultra-rich individual to target:
  • The desired goals;
  • The family office type in mind;
  • The list of services he desires;
  • The reason behind the requirement of a family office;
  • The proposed budget;
  • The involvement of other family members in the management operations.
These points let a family foresee the aspects beforehand. This way, it helps them choose the right system for managing their wealth as per their needs and circumstances.
Then, comes the choice between an SFO and an MFO.
The possible reasons for a UHNW family to choose a Single-family office is so that they can directly regulate their family assets and wealth. In addition, they can enact the office as per their desires so that it is able to accurately provide the kind of services they need. However, there is a downside to it. This type of office requires full commitment. The family will have to manage, recruit and organize everything on its own, which can be a daunting task. The huge cluster of services for the staff and the diversified expenses that accompany an SFO is not manageable and budget-friendly. Last but not the least, there is also the challenge of setting up services from scratch.
This is where an MFO streamlines the process and the budget. Super-wealthy families choose a multi-family office to avoid conflicts of individual interests. In addition, the structure comprises of services that have been predesigned for maximum benefits. In addition, an MFO is operated commercially as it involves a cost-effective approach by the collaboration of multiple families. In fact, a multi-family office aims can be generating maximum profits at the least investment.
Conclusively, the aim of a wealthy family is to manage all its investment schemes and financial assets in a productive manner. To get maximum profits, they will need to develop a strategy that enable them to grow without ruining their overall budget. Both MFOs and SFOs deliver certain positives that suit a family accordingly.
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