Multi-Family Offices Allow Families to Manage, Protect and Grow Wealth

For years, Bill Mauler has been amassing a portfolio of investments including real estate, stocks, and collectibles in excess of $35 million. He is proud of his achievements and enjoys his lifestyle but admits it can be a challenge to manage it all. To him it seemed like he was interacting on an almost daily basis with accountants, lawyers, financial consultants and other advisors.

Mauler was like many high-net worth individuals who could benefit from a multi-family office (MFO). An MFO is a firm that handles financial, investment and even personal management for families that typically have a net worth of at least $20 million. An MFO assembles a team of advisors to provide customized services to a small number of families. These services may include accounting, tax and estate planning, risk management, foundation management and more. Some MFOs include such services as household staff management and vacation planning.

Mauler decided to enlist the services of an MFO which he says has, “Helped alleviate some of the headaches of organization and paper pushing. Multi-family offices provide a professional set of eyes overseeing the team of advisors and making sure they are doing their respective jobs.”

One example of the growing popularity of MFOs is indicated by the Family Firm Institute, an international professional membership organization based in New York, which was started in 1992 and now has over 1,500 members in countries as far as Europe, Asia, Latin America, and Canada.

Because MFO advisors work with a small number of families, they can provide proactive, customized advice and deliver fully integrated and consolidated services. “I was getting all sorts of advice that was not coordinated and therefore confusing,” said Mauler.

Although the benefits can be far-reaching, beginning a relationship with an MFO requires research and a financial commitment. When investigating an MFO, you should consider: -- The firm’s history and typical clients -- the firm’s fee schedule -- What specific services they will provide for you and what, if any, will be outsourc -- How and how often they will communicate with you

Not all high-net worth individuals may require or even benefit from an MFO, but for those who are looking to outsource managing the day-to-day responsibilities of taxes, financial planning and more, working with an MFO can be a worthwhile investment.

By R. Kenner French
Business and Financial Contributor, Palm Beach Times