Have you ever heard of The Rockfeller Family Office? It is the family office that has served the interests of the Rockfeller family from generation to generation. The purpose of this type of structure is to advise, manage and develop the assets of wealthy individuals. And sometimes its services may incorporate broader components that benefit its clients.
What is a family office?
The concept of the family office was born at the end of the 19th century. Initially developed in the United States, it met the needs of wealthy industrial families to have in-house wealth managers. Big names like Rockfeller were the first to use the services of a single family office. They entrusted the latter with various responsibilities relating to family affairs, such as legal and tax regularisations.
Single family offices later gave rise to multifamily offices. The latter were small structures outside the families, and took care of the management needs of several wealthy families at the same time. They are often headed by people with a very solid profile, such as former managers of private or investment banks.
Over time, the family office has become a popular choice for wealthy people. This has attracted interest from all over the world. You will find multifamily offices in major cities such as London, Geneva or Singapore. Their clientele is generally made up of Americans, Europeans and Emiratis, both ‘new money’ (entrepreneurs) and ‘old money’ (large families).
The services of a familly officer can be categorised as follows: discretionary asset management, investment monitoring and supervision, and investment advice. In view of this mini-list, it should be mentioned that the profession requires exceptional skills and a multitude of qualities from this professional. After all, no one would want to entrust their investment projects to an amateur. It should also be noted that wealthy people particularly appreciate security and peace of mind.
Advantageous services of a family office
In 2018, the AFFO/Opinion Way family office barometer indicated that 66% of clients who called on the services of a family officer displayed a balanced investor profile. One year later, the same barometer showed a clear increase in private equity investments. This is strongly linked to the economic situation in Europe and the world at the time. To sum up, all the figures point to a favourable climate for investments in life insurance, physical real estate and start-ups.
It is therefore advantageous to call on a family office that can provide quality investment advice. The family office is supposed to be involved in the identification, evaluation and monitoring of investments. Many operations, such as the selection of investment management companies, accompany this act, the sole aim of which is to accumulate profits for the client. At the same time, his financial objectives will always be taken into account.
The family office would benefit not only large wealthy families, but also entrepreneurs looking for buyers for their business. It is both reliable and discreet, giving them confidence in the management of their finances and their investment project. In France, many clients trust the services of members of the French association of family offices as soon as they reach a financial asset value of €10 million or more.
Both mono-family offices and multifamily offices are known for their ability to manage a wide range of issues related to the ownership of a large estate. They have a duty to develop and pass on these assets to the descendants of the family to which they are dedicated.
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