Family Offices Questions and Answers
100 questions on family offices answered by Richard C. Wilson. What family offices are, what they cost, how they are staffed and how they invest, drawn from The Single Family Office and How to Start a Family Office.
Starting a Single Family Office
- What is a single family office?
- How much money do you need to start a family office?
- What are the first steps to set up a single family office?
- How long does it take to set up a family office?
- Should I start a family office or keep using my private bank?
- What is a family compass and why build one before the office?
- What legal entity should a single family office use?
- Where should a family office be located?
- What are the most common mistakes when starting a family office?
- Who should lead the project of starting a family office?
- Can a family office start with one employee?
- What should a family office business plan include?
- How do founders transition from running a company to running a family office?
- What questions should a family answer before forming a family office?
- What should a family office do in its first 90 days?
- How do service providers fit into a new family office?
- What partners and vendors does a single family office need?
- What operational processes does a single family office need?
- What is the future of the single family office industry?
Costs and Budgets
- How much does it cost to run a single family office each year?
- What does a family office spend on technology and software?
- How much do multi-family offices charge?
- Can a family office pay for itself through lower fees?
- What is a reasonable family office budget as a percentage of assets?
- What are the hidden costs of running a family office?
- How do family offices control overhead?
- What does it cost to set up a family office in the first year?
Staffing and Compensation
- How much are family office executives paid?
- How much do family office analysts and junior staff earn?
- What roles does a new family office hire first?
- How do you hire a family office CIO?
- How should family office bonuses and carried interest be structured?
- How do you recruit talent into a single family office?
- Should family members work in the family office?
- How do family offices keep staff from leaving?
Single, Multi-Family and Virtual Offices
- What is the difference between a single family office and a multi-family office?
- What is a virtual family office?
- At what wealth level does a single family office make sense over a multi-family office?
- What is an embedded family office?
- How do you choose a multi-family office?
- Can a single family office turn into a multi-family office?
Investment Policy and Portfolios
- How should a family office write an investment policy statement?
- What portfolio models do family offices use?
- How do family offices allocate across asset classes?
- How much liquidity should a family office keep?
- How do family offices measure investment performance?
- What role does an investment committee play in a family office?
Direct Investing and Co-Investing
- Why do family offices prefer direct investments?
- How do family offices source direct deals?
- What is a deal flow totem pole?
- How do family offices structure investments in private companies?
- What is co-investing and why do family offices like it?
- How should a family office invest in a startup in tranches?
- What size checks do family offices write into private companies?
- Do family offices buy whole companies?
Real Estate
Private Equity and Venture Capital
Deal Flow
Raising Capital From Family Offices
- How do you raise capital from family offices?
- How do you get a meeting with a family office?
- What do family offices want to see before they invest in a fund?
- Why do family offices say no to most fund managers?
- How long does it take to raise money from a family office?
- What mistakes do fund managers make when pitching family offices?
Due Diligence
Governance, Succession and the Next Generation
- What is family office governance?
- What should a family constitution include?
- How do family offices prepare the next generation?
- How should a family office handle succession?
- When should a family office add an advisory board or independent directors?
- How do family offices hold family meetings?
- How do families keep wealth for more than three generations?
- What internal controls should a family office have?
Philanthropy
Technology, Reporting and AI
Privacy, Security and Risk
Regions and Regulation
How Centimillionaires Think
- What do centimillionaires do differently with their money?
- What mistakes do centimillionaires make with their investments?
- How do centimillionaires think about their time?
- What changes when a family passes $30 million or $50 million in net worth?
- How do ultra-wealthy families decide what to say yes to?
- Why are wealthy families thrifty about small costs?
- What is the Family Office Club?
- How can family offices learn from each other?