What is a Family Office?

We are all familiar with the wealthiest families in the world, the Rockefellers, the Vanderbilts, etc.  However many are not aware that there are companies, called family offices, which provide financial services for these families. They are private companies that manage investments and trusts for a single family or a multi-family office will manage the funds of several wealthy families. The family’s wealth is often accumulated over many family generations and generally exceeds $100 million in assets. The financial services that these companies provide include everything from basic daily finances and hiring domestic staff to travel booking, entertainment planning, real estate management, philanthropic endeavors and other investments. Often theses functions are separated and divided among specialized professionals. Frequently when firms are seeking seed capital for their start up company they will reach out to these family finance investors. Family offices manage millions of dollars in assets and therefore are a great market to target for raising capital.

Modern family offices are typically divided into three categories; Class A, Class B and Class C. Class A offices are operated by an independent company that receives direct oversight from a family trustee or administrator. This category typically manages all aspects of the family’s wealth including the daily management of all illiquid assets and all liquid financial assets. The Class B category includes family wealth that is managed and operated by a bank, law firm or accountant firm.  The family operates the last category, Class C, with the assistance of a small support staff. Regardless of the category that manages the finances, these families are wealthy and are constantly looking for investments to further their assets and create a secure future for the family. Family offices are becoming a greater trend for raising capital as these professionals are putting more emphasis on the family’s financial investments. Fortunately there is a market for family office databases where companies can purchase and use them for marketing strategies. These databases are available for sale online and are a great way to enhance a company’s professional network and gain capital.