Family Office

Originally from the Anglo-Saxon term family office designated organizational forms and services that deal with the management of large private fortune. As an organization forms here are either family-owned companies available, where the family wealth is concentrated, or companies or departments of banks that provide financial services to this customer group.

Background

Originally founded very wealthy families for the optimal management of their personal and business assets and liabilities own family companies.

In Europe there are over 4000 firms providing Family Office Services, 750 of them devote themselves exclusively to the business of one family, for example, the Jacobs Holding in Switzerland. Each of these single family offices managed assets of at least 100 million U.S. dollars. The recommended minimum size for a single family office is located at least 500 million Swiss francs.

So-called multi-family offices manage minor assets, in Europe, there will be almost 2000, the 10 to 15 customer care, on average, with a portfolio of 25 to 50 million U.S. dollars.

In Switzerland, which is a center for family offices in Europe, should exist between 300 and 400 family offices that serve foreign clients mainly and 20 employees on average. A dozen of them manage each individual capacity of 10 to 15 billion U.S. dollars.

Business and private banks have started increasing, with in-house multi-family offices to woo the customers. The independent family offices accuse these banking units, not to have the necessary distance when making investment decisions and especially on commissions to be keen. Independent agencies have, however, other incentive schemes and calculated strictly according to expenditure, not a percentage of the assets or profits.