by Russ Prince
More and more single-family offices are being established. This is a function of the increasing number of very wealthy families and the fact that single-family offices are proving to be superior way for them to manage their money as well as address major family concerns. The complication is that an increasing percentage of them are being set up badly.
Angelo Robles, founder and CEO of the Family Office Association, said, “The appeal of single-family offices by the very wealthy is also attracting more professionals. Aside from the inherent fascination of single-family offices, the major attraction is the monies that can be made by advising the very wealthy. Unfortunately, more than a few professionals who supposedly are experts on setting up family office are just not up to the job. Because of their lack of expertise the results can sometimes be pretty calamitous.”
The most pervasive mistake made be these substandard family office experts is not developing a deep understanding of the goals, objectives and agendas of the wealthy family. A single-family office can get optimal results when it is built around the wants and needs of the family. Too often, some professionals are using a cookie-cutter approach to setting them up.