A Family Office provides complex, flexible and customized services for the planning and management of all aspects of family wealth.
What is a Family Office?
A Family Office is essentially a private wealth management company offering a wide range of tailored financial and legal services to high net worth families. The services go beyond asset management and financial planning, they cover the complex management of all aspects of family wealth, tailored to the needs of the given family. This may include tax planning, philanthropic activities, purchasing and managing real estate or even collections related tasks. A Family Office’s service provides a level of complexity, flexibility and speed that other service providers and consultants can rarely achieve.
What does the Family Office service include?
The range of advice and services necessary for wealthy families is very broad and requires well-coordinated cooperation from a team of legal, insurance, investment, real estate, business and tax specialists.
Family Offices have the knowledge necessary to serve the complex needs of wealthy families, which includes asset management, cash management, risk management, financial planning, lifestyle management and other services that can help clients navigate in the complex world of asset management.
Our Family Office services can help families in the following areas:
• Comprehensive wealth planning
• Real estate portfolio planning
• Succession planning
• Tax planning
• Financial planning and cash-flow analysis
• Asset protection and risk management
• Advisory for selecting a private banking service provider
• Administration services
• Accounting and financial reporting services
• Creation of private equity funds, venture capital funds, family foundations, trusts and companies
• Planning charity and gift giving activities
• Services related to the purchase and operation of an art collection, yachts, private planes and vintage cars
What are the advantages of a Family Office?
All families with larger assets can benefit from a Family Office, especially if the head of the family personally handles complex issues related to family finances. With the involvement of a Family Office, the burden on the person responsible for the family’s finances can be significantly reduced, as the experts will be the ones who pay attention to the family’s financial life day and night, creating the peace of mind for all family members to enjoy the opportunities their wealth offeres.
Who should choose a Family Office?
Extreme wealth and extreme responsibility go hand in hand, so the greater one’s wealth, the greater one’s liabilities. When the family wealth reaches a certain level, its effective management becomes a serious task: managing family wealth, preserving and increasing its value, along with determining how this wealth can serve the needs of future generations in the longer term can be an overwhelming challenge. However, the management of assets, which are typically very complex and made up of many different elements, requires not only a high level of expertise, but also constant attention, so the involvement of a Family Office is of particular importance from several points of view.
A Family Office can help not only in the more efficient management of wealth by removing the burden of financial and administrative tasks, but also in the field of more complex financial issues, when several types of business enterprises, real estate and international investments are part of the portfolio. One of the additional advantages of a Family Office is the level of privacy they can guarantee, which is essential for many families with significant wealth.
Single or Multi Family Office?
The creation of the first full-service Family Office is attributed to John D. Rockefeller, who founded the office in the United States in 1882 for his own family. Today, Family Offices operate in a variety of structures, typically providing services to one or more wealthy families.
Single Family Offices/SFOs
The classic, so-called single-family offices are founded by families with extremely significant wealth who want to create a team of experts dedicated only to them to manage their finances.
The most obvious advantage of single-family offices is that they can ensure the highest level of protection of sensitive financial and business information, as well as the freedom to ensure that the operation of the office meets the goals and expectations of the family in all respects.
Multi-family offices/MFOs
Today’s Family Office service providers – such as the Primus Family Office Service – are mostly so-called multi-family offices that serve multiple families at the same time.
One of the key strengths of these multi-family providers, in addition to their lower rates, is that due to their size, they are able to work with specialists with great expertise and extensive experience.
In the case of multi-family offices, their independence is of particular value, which not only helps to avoid possible conflicts of interest, but also guarantees complete objectivity during their operation. The same independence creates the possibility for the family office to flexibly customize its services according to the unique needs and goals of each client.
Family Offices in Hungary
Family Offices do not have a long tradition in Hungary, this service only appeared in our country in the last 5-10 years. Nowadays, however, there are many families with the level of wealth which can justify the involvement of a family office service provider.
Family Offices in the future in Hungary
We are just entering the period of the first large family wealth transfers in Hungary and in connection with this, we can expect an increasing demand for the management of multigenerational wealth as well as the need for a broader service palette offered by family offices.
Contact us and find out how our dedicated Family Office experts can help you navigate the challenges and opportunities of your wealth by creating a system that helps align generational goals with daily activities.