Why Not Have My Own Single Family Office?

Each family comes to us with a unique situation. Some have full time family office staff today, whether separately or sometimes combined with the staff at their family business. Some have never used a family office staff at all, relying on various advisors and attempting to manage it all themselves.

Homrich Berg Family Office can offer advantages for families in each of those situations:

Family Situation
Potential HB Family Office Advantages

Operate a true single family office with dedicated staff

  • Potential staff and overhead savings
  • Potential improvement in access to alternative investments depending on size and scale of current office and net worth
  • Improved controls and compliance unless already have a full time compliance officer
  • Ability to maintain family office level of service with dedicated point of contact for comprehensive family view

Use family business staff to also handle family office needs

  • Improved focus both for business and family office affairs without necessarily adding significant expense, particularly if already using outside investment advisors
  • Potential improvement in investment and planning expertise
  • Improved controls and compliance including separation from family business affairs
  • Ability to maintain family office level of service with dedicated point of contact for comprehensive family view

Do not have a family office staff

  • Improved service compared to simply using an investment or planning advisor, but without the full cost of launching your own single family office
  • Potential improvement in access to alternative investments
  • Comprehensive view of family financial picture and single point of contact for managing team of advisors

For families considering using their own staff, the experience of many of our families would indicate there are many specific concerns that arise when you have your own in-house family office staff team:

  • Involves managing a staff of employees directly, including providing benefits, performance evaluations, etc.
  • Requires paying significant compensation to attract the level of talent desired
  • Often requires investment in separate office space and overhead - or squeezing it into the location of the family business
  • Opens family to scrutiny via potential new compliance regulations and reporting required at federal and/or state level
  • Often necessitates investments in technology and software to attempt to provide consolidated reporting at level desired
  • Requires development of tight controls to ensure prevention of opportunities for fraud or inaccurate decisions
  • Often makes it harder to ensure objective advice or remove emotion from the process of making decisions

Let us work with you to understand the needs of your family and discuss the right combination that works for you. We are willing to consider integrating selected existing staff members into the HB team if appropriate for building the solution that works best for your family situation.