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