Family Offices Are On The Up
In the last two decades or so, the nature and role of family offices has seen a dynamic shift. Research into the area suggest that there were over 7,000 single family offices across the globe in 2019 which was a 38% from 2017. Family offices are on the up and have become a way for families to organise both financial and administrative affairs.
Family Office Professional
In the past, wealthy client families would delegate the management of their financial assets to investment managers. As a result of the 2008 Global financial crisis we experienced which meant a pro-longed low income environment. Target returns from such managers fell, thus becoming a less appealing option and clients are left wondering if they can do better themselves, with family office execs managing the financial assets and directly reporting to family members.
Along with the above this coincided with clients becoming concerned over the security of their information, maintaining all data in one place, increased control and ensuring a greater peace of mind.
There are many other factors also. Clients must source good family office executives with the availability and willingness of professionals to move from traditional careers in financial services. There is a growing pool of this talent in Europe who are pursuing this non-traditional career path. A family office can provide employment working directly for a client family, making them responsible for just one relationship. On the other side of the coin, career progression and development are not as obvious. The other is to contact a specialist family office provider such as ourselves here in CityTrust.
All family offices are unique but the operational side is becoming more distinct and uniform. It is set up to meet the demands of a client family. Those who work as wealth professionals are seeing their way of operating challenged by clients demand for increased control and visibility of their affairs.
This has lead to bespoke services which foster open and honest communication channels for the entirety of the family office’s life cycle. Being able to provide these services, accompanied with experienced advisers and professionals put you in the best position to maximise the client’s wealth but also retain the client.