Who Needs A Family Office: Factors To Consider

Do you need a family office? If so, which model should you use? Unfortunately, most financial advisors answer this question with a simple set of personal net worth. Your balance is an important factor, but there are many other questions that need to be answered about income, diversification, staffing, overhead, geographic inequalities, family dynamics. You may get navigated to ubs.com/global/en/global-family-office/home.html to hire family offices in Hong Kong.

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This longer and more evocative discussion can be broken down into many categories: the measure of your wealth, the complexity of your life, and the priorities of your family.

The Complexity of Your Life

A large portfolio of stocks and bonds, regardless of size, is not complicated or time-consuming. Financial advisors who specialize in the super-rich can easily manage this portfolio based on your goals and risk tolerance. If all your assets are held in one family company, you don't need employees in the family office to help you increase your wealth. Your business management team is already helping you with value creation.

However, other customers built more business because of their early financial success. The decision to manage the myriad of active private investments requires employees, not just the management team, in every company. In this case, the family office would look like a private equity firm with one investor, with employees closing deals and doing due diligence.

Your family's priority

It's hard to discuss starting a family office without talking about family. It is very likely that a person without heirs has the resources and prerequisites to set up a family office. But most family offices are built around families, or at least around the legacy families want to leave from the world.

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