The Global 3300 Family Office Database - 2008
Introduction to The Family Office
Investment Banks and Fund Managers (predominately those active in alternative investments) are currently experiencing funding shortages due to the global credit crunch, there is an alternative way to raising substantial funds,
Family Offices / Investment Vehicles of the world’s Ultra-Rich
No one knows how long the “Global Credit Crunch is going to last”. Japan experienced something similar in the 1990’s and lasted nearly ten years.
The term: “Family Office” is becoming harder to define these day’s. Originally, we had the “Single Family Office”, now with many opting to merge with other Ultra-Rich Families, commonly called “Multiple Family Offices” which again becomes further confusing with “Top-End” wealth management companies turning themselves into Multiple-Family Offices. To complicate the matter even further, we have ultra-rich families avoiding the above expensive concept, and opting to set-up an “Investment Vehicle” (private investment company) and referring that investment vehicle as their “Family Office” to invest in predominately, Hedge Funds, Fund of Funds, Private Equity, Equities, Futures & Options, Derivatives, Government Bonds and Real Estate to name but a few. However, it must be understood, these so-called investment vehicles have at least $50 Million - $500 Million+ in assets. We also research and include on this database / founders / families who control major financial investment companies predominately private.
Our research on Family Office, Private Investment Vehicles will not normally be included on our database unless there are at least $50 Million of Assets with the norm being $100 Million - $100 Billion+.
The first wave of single “Family Offices”, were first formed back in the 1800’s predominately within the USA. The European Aristocratic Families had similar set-ups, commonly called (The Estate Office), (land owners) which go back much further.
Ultra-successful entrepreneurs who are either still at the helm of their original business or have since sold-out their business interests have decided not to divide the immediate break-up / proceeds of their wealth to family siblings but to form a “Family Office” which employs in-house professional and financial experts to manage, create and sustain the wealth on behalf of existing family members and for future generations of the family.
This prevents family members from squandering the family fortune and enabling family members to maintain a functional purpose in life.
In addition, there is of course “The Privacy Issue”
It is common for a number of family members to sit on the board of a “Family Office” with many taking an active part in the direction of the Family Office.
The “Family Office” also handles non-financial matters on behalf of family members that include: Private-Schooling, Household and Travel Arrangements, Family Security, Health, Charitable and Family Disputes etc.
The single Family Office will normally have assets exceeding $500 Million + and will cost between $1 Million - $2 Million in annual administration costs to operate effectively.
There are smaller Family Offices with assets just short of $100 Million. However, there administration costs can still exceed $500K.
There are more affordable methods such as, Multi-Family Offices, these stemming from Private Banks, Wealth Management Companies, Law / Trust Offices and Accountancy Practices.
They generally offer an array of financial and non-financial services to suit the needs of most High Net Worth Families. Many will accept new clients with as little as $5 Million worth of assets.
Family Offices / Investment Vehicles of the world’s Ultra-Rich
Regarded and accepted as “Private Financial Institutions” by the US financial authorities, they can be approached to invest into sophisticated investments.
A list of “Sample Entries” are available upon request.
thefamilyoffice@hotmail.com