Introduction to the Family Office
The family office may be the ultimate status symbol for ultra-wealthy, multi-generational families. John D. Rockefeller created one of the first family offices in the U.S. to manage and preserve generational wealth earned from the Standard Oil Company. Today the largest family offices include Walton Enterprises, Bezos Expeditions, MSD Capital (Michael S. Dell), and the Soros Family Office.
A family office is unique, because each one is designed to meet the specific needs of the family that created it.
Family offices generally perform two main functions: Managing the investment assets, and providing administrative/concierge serves for family members. These services may include managing homes, organizing travel, paying bills, or preparing income taxes. Another way to think of a family office is as an entire investment firm with exceptional client service and just one client, a family.
Family offices often originate in the executive office of a privately owned company. The founder may have an administrative assistant to help with travel, or have special assistance from human resources or the finance group to help with philanthropy, investments, or taxes. If the business is sold, those individuals working most closely with the family may separate from the company to continue working with the founder and family.
So who should have a family office? Experts advise that $250 million of wealth will justify the expenses.
