Nature of Single Family Offices (SFOs)

What advantages are there to setting up a Family Office?

The Family office is set up to service the needs of the members of one family.

These needs usually include:

  • Growing or maintaining financial wealth
  • Support the family’s long term growth
  • Manage Inter-generation transfer issues
  • Manage the various needs of the family as a whole
  • Coordinate the various needs via a unified vehicle (Family Office)

The advantages of a Family Office versus an ad-hoc strategy of solving problems when it arises include:

  1. Lower cost of investing by having a larger consolidated wealth pool
  2. Better access to institutional investment opportunities, increasing chance of higher returns
  3. Tailored investment options to better suit the family’s needs
  4. Consolidated oversight with adequate reporting functions reduces the risk of non-compliance of the family in terms of laws and regulations
  5. Family members have regular and informed access to the activities and results of the Family Office
  6. More coordinated implementation of steps and actions to achieve the goals of the family.