The terms Single-Family Office and Multi-Family Office are increasingly used but are still sometimes unclear for some. What is a Family Office? How does it work? What are the advantages of working with a Multi-Family Office? For Monaco Economy, Philippe Feller, Founder and Director of PF MFO, a reference company in global asset management, clarifies this important and topical subject.
Could you explain what a Multi-Family Office is?
A Multi-Family Office acts as a coordinator at the family level, bringing its experience and network to deal with the tax, heritage and family requests of each of the families concerned.
What types of services does a Multi-Family Office offer?
The Multi-Family Office offers a very wide range of services, such as wealth consolidation, financial planning, monitoring of portfolio management and property management, estate and tax planning, philanthropy and so on.
How are Multi-Family Offices structured and organised?
Generally, Multi-Family Offices are based on two pillars. Internally, the team will be made up of employees, each experienced in their sector (banking, real estate, taxation etc) and externally in specialised offices according to the needs of the family.
What are the selection criteria for becoming a client of a Multi-Family Office?
Families who use Multi-Family Offices have significant assets and are looking for a coordinator to manage them by establishing a long-term relationship. They are looking for support in financial, tax and inheritance matters.
How do Multi-Family Offices manage their clients’ investments?
Multi-Family Offices are often set up by wealth management professionals, such as private bankers, lawyers or fund managers, who have the network to help their clients manage their wealth effectively. Multi-Family Offices have access to exclusive investments, preferential trading rates and greater diversification of investment portfolios.
What is the difference between a Single-Family Office and a Multi-Family Office?
Multi-Family Offices manage the assets of several families, unlike a Family Office which only takes care of one family.
How do Multi-Family Offices ensure the confidentiality and security of their clients’ information?
They implement internal procedures that secure information. Employees and suppliers are bound by confidentiality contracts. Communication software is secure and the risks are assessed regularly to ensure the confidentiality and security of their customers’ information.
What are the advantages of working with a Multi-Family Office rather than managing your investments yourself?
Multi-Family Offices offer a network of professionals capable of managing the assets of each family, taking into account their specificities and needs. Multi-Family Offices also benefit from advantageous conditions with the various professionals with whom they work and can pass this on to their clients. Finally, a significant advantage is the reduction of costs and resources required, compared to a Single-Family Office.
How do Multi-Family Offices assess investment opportunities for their clients?
The Multi-Family Office assesses investment opportunities by analysing clients’ needs, their acceptance of risk and above all the objective to be achieved. Then, the Multi-Family Office meets with management professionals in order to put in place a strategy which will make it possible to meet clients’ expectations.
