Types of Family Offices
We have identified eight common family office types. Notably, many FOX members describe their offices as a combination of two or more of the ones defined here.
Founder's Office
Supports the activities of business founders running operating companies. Founders offices address questions regarding ownership structure, real estate management and other financial issues outside of the operating business.
Shareholders Office
Supports the activities of business owning families who are focused on growing and running the operating business. The office is often embedded in the operating company and provides financial and tax services for family members.
Family Enterprise Office
Supports owners committed to staying together as a family on a broad range of dimensions – business, philanthropy, and otherwise. This office typically focuses on wealth creation as well as wealth preservation, and risk-taking strategies as well as risk management strategies.
Multi-Generational Office
Supports diverse owners from multiple branches of the family or from multiple families. This office is challenging to operate as it supports the broadest range of services and the greatest diversity of clients. Multi-family offices often open their doors to accept non-family clients to increase the purchasing power for the owning family group.
Investment Office
Supports owners who are focused on both public equity and/or private equity investing. On average, strategic and tactical asset allocation provide the discipline for diversifying wealth across 12-16 asset classes. Family members often pool their buying power through investment partnerships where they agree on time horizons, risk parameters and asset classes.
Compliance Office
Supports diverse owners from multiple branches of the family or from multiple families. This office is challenging to operate as it supports the broadest range of services and the greatest diversity of clients. Multi-family offices often open their doors to accept non-family clients to increase the purchasing power for the owning family group.
Trustee Office
Supports trustees and beneficiaries of family trusts in a fiduciary capacity. Office managers often serve as trustees of these trusts. The focus of the office is on trustee training, trust administration, record keeping and tax compliance for the structures of the family.
Philanthropy Office
Supports the goals of the philanthropically-minded owner whose goal is to distribute the majority of the wealth to philanthropic causes. Family foundations are often at the center of the activity for this type of office. Activities to support the lifestyle needs of the owners are managed separately to comply with non-profit regulations.