Family Office
A Family Office is a private investment management company that manages the wealth of a high net worth family. A family office employs investment, accounting, tax, and legal experts. As such, the average family office can cost up to $2 million to operate. Thus, a family should have at least $150 million in assets to justify setting up their own family office.
Professionals at a family office handle everything from investing, succession planning, legal affairs, real estate management, accounting, and tax efficiency to bill payments for the family’s daily expenses and even travel arrangements.
Due to the high cost of setting up and operating a family office, some high net worth families opt for a cheaper multi-family office or virtual family office to manage their wealth. In this arrangement, one office or group of experts manages the wealth of more than one family. Thus, multiple families share the operating costs.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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