Google’s Top Family Office Questions, Answered

Ultra-high-net-worth individuals (UHNWIs) will be responsible for a sizable proportion of that wealth. Thus, Family Offices (FOs) are becoming an even more indispensable element in wealth management. What are the most-googled questions about FOs? And what about their software?

01 What is Single Family Office Software?

Family offices are different from traditional wealth management shops in that they offer a total solution to managing the financial and investment needs of an affluent individual or family. For example, the relevant software helps a single family office streamline its core accounting, investment, and reporting operations. It can include partnership accounting and bill payment, as well as financial data aggregation and client reporting. The single family office software is a reliable tool to track and analyse financial performance and measure the impact of investments across asset classes, geographies, impact sectors, impact strategies, and return profiles.

02 What is the Structure of the Single Family Office?

A single-family office (SFO) is capable of managing all the family’s wealth and is guided and overseen by experts who make decisions to maintain the heritage for generations. The typical SFO structure is designed to manage and administer high-net-worth families’ assets properly. The structure involves well-prepared teams (including external and internal investment managers) that preserve a family’s heritage through successful investments. SFO investments can help individuals who need assistance with wealth management, leveraging assets to invest, and preserving heritage for generations.

03 How many Single Family Offices are there in Switzerland?

Unsurprisingly, there are many powerful SFOs in Switzerland, investing in different asset classes like private equity, venture capital, or real estate. Many family offices own their own banks. According to the portal familyofficehub.io, there are 81 significant SFOs in Switzerland. Most of them are located in the financial centres of Zurich and Geneva. Both cities offer connections to high-profile private banks and funds, are well connected, and offer a high standard of living. Furthermore, many important Swiss family investment vehicles are located in Zug, Pfäffikon, and Basel. Among the biggest SFOs are ARMADA Investment AG, COFRA Holding AG, and Jacobs Holding AG. 

04 What is the Difference between a Single Family Office and a Multi Family Office?

A single family office is an excellent choice for families with a large amount of investable assets because they can provide various services tailored specifically to the family’s needs. A multi family office ideal for families with fewer assets because it provides a broader range of services at a lower cost than a SFO. SFOs are often close to the family roots (e.g., a real estate dynasty often also invests in real estate through their investment firm), while MFOs are developing an investment strategy based on the risk and return profile of their clients. Also, MFOs are often just structuring and controlling the development of wealth. The real investment decisions are taken by third-party asset managers, which are determined in so-called “beauty contests.”. 

05 What are the biggest Single Family Offices in the World?

According to the portal fundcomb.com, there are 44 large single family offices (SFOs) in the world. The first ten are the following: Walton Enterprises (USD 224 bn, the SFO of the Walton Family, established by the late Sam Walton, the founder of Walmart), Bezos Expeditions (USD 100 bn, the SFO of Jeff Bezos, the founder of Amazon), BMGI et Cascade Investments (USD 60 bn, BMGI – Bill and Melinda Gates Investments manages the assets of Cascade Investments, which makes private investments for the Gates family), Rockefeller Capital Management (USD 18 bn, has its roots in the establishment of a family office in 1882 by known US businessman John D. Rockefeller), Gina Rinehart (USD 15 bn, Gina Rinehart is one of Australia’s wealthiest individuals and the Chair of Hancock Prospecting), Point 72 (USD 12 bn, founded in 2014 it manages the assets of its founder, US hedge manager Steven A Cohen), Huizenga Capital Management (USD 5 bn, SFO of the Huizenga family who founded Waste Management), Brooklyn NY Holdings (USD 4 bn, SFO of the Lerner Family of Theodore N. Lerner, the US real estate developer), Portland House Group (USD 2.3 bn, manages the capital of the Australian-based Hains family, ancestors of David Hains, billionaire businessman, engineer, and horse breeder), Costa Asset Management (USD 2 bn, SFO of the Costa Family, who founded Costa Group, Australia’s largest fruit and vegetable supplier), Todd Corporation (USD 2 bn, the SFO of the Todd Family of New Zealand with interests in energy business).

06 What is a Multi Family Office?

A multi-family office is typically a privately held company, and its capital is the investable assets of member families. Multi-family offices are sometimes formed when a single-family office merges with another single-family office or decides to take on additional clients. Larger wealth management firms may also create a multi-family office division, or a team of financial professionals may create a multi-family office firm from scratch. While a wealth management firm typically provides investment portfolio management services and financial planning services, a multi-family office’s services extend beyond the strictly financial.

07 What are the Benefits of using a Family Office Software?

The family offices (FO) handle a wide range of tasks, from investment management to estate planning and beyond. In this digital age, the volume of financial data can quickly become overwhelming without the right tools in place. For example, among the benefits of using FO software are centralised data storage, automated data entry and reporting, enhanced data security, improved data analysis, and streamlined communication.

08 When should you consider a Family Office?

According to Investopedia, since family offices (FOs) can be very expensive to establish and operate, only the extremely wealthy who have complex financial, investment, and personal needs usually require one. One estimate is that only individuals with a net worth of more than USD 250 million need (and can afford) a dedicated family office. The suggestion of Asena Advisors, the US family office consultants, is that, generally, a family office makes sense for individuals or families with a net worth starting in the range of a minimum of USD 50 million.