ARE YOU A FAMILY OFFICE?

So “family offices” are increasing, but are they?? What is the classification of a family office? From spending the last five years working for a family office, I think I can tell you. An this is not just from my understanding but from seasoned veterans who were in this space before anyone outside of the “club” ever heard the word family offices.

$250MM in assets and they not only have investments to deal with (which I like to call the hard side (investment side) but also the soft side which deals with the family issues. Governance, generational issues, tax planning, legal planning, internal family issues per se. All of the things great wealth can bring outside the investment side.

Outside of the net worth number ($250MM), I also think you can distinguish if they are a real family office by asking the question. Are investments made from a company checkbook or the personal checkbook of the family?? If it is from the business side, then that is not from a family office pocketbook but the business pocketbook. If it is from the personal wallet then bingo there you have it. Now some family offices do have a blended pocketbook whereas the family office is ran in conjunction to the business (sharing the CFO, accountant, etc.) but still the check is for personal investment, not a business investment. Let's remember for those that have businesses you still have a personal bank account, and so does a real family office.

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