Please ensure Javascript is enabled for purposes of website accessibility

How to Create, Organize and Coordinate the Ecosystem

Understand the key functions of Family Offices: which aspects are best suited to highly qualified third-party providers and which to dedicated staff.  Some ways to think critically about directing and coordinating a family office network.

Understand the key functions of Family Offices: which aspects are best suited to highly qualified third-party providers and which to dedicated staff.  Some ways to think critically about directing and coordinating a family office network.

In our last article, Typical Needs of Wealthy Investors, we discussed planning, investment, and other needs of wealthy individuals and families (the “principals”) and the required expertise, resources and infrastructure to serve those needs.  We also noted that the term “Family Office” (“F.O.”) is now often used in various ways to describe either a dedicated organization or the types of services delivered by an ecosystem of providers. 

From a regulatory perspective, the term “Family Office” has a specific meaning in the United States.  Empowered by the Dodd-Frank Act, the SEC defined the term: “Family Offices are entities established by wealthy families to manage their wealth and provide other services to family members, such as tax and estate planning services.” The SEC did so to exempt those entities established for a single family from the burden of registering as advisors.  

While that practical definition is helpful, we at Bitterroot Capital Advisors view the concept of a Family Office slightly differently – as a network of resources and activities that serve wealthy individuals or families.  These networks can take many forms to serve various family needs and priorities.  As is so often the case, one size or shape does not fit all.

This paper examines that question more closely, describing several key functions of F.O.s, how they may be effectively organized, and which aspects are best suited to highly qualified third-party providers and which to dedicated (“in-house”) staff.  Lastly, we also address the critical consideration of directing and coordinating a family office network. 

This is part of the Ultra-High-Net-Worth Investors: Preparing for What’s Ahead series. Continue reading similar content below:

Strategic Planning

For those beginning to think about the sound management of wealth, possibly around an exit from a large investment, the following outlines some questions we might ask. The questions range from the sublime – family and philanthropic goals – to the more mundane – investment, administrative and tax matters. As you revisit your life goals and begin to embrace this new undertaking, identifying those resources that can help and how to engage with them is likely to become an early priority.

Strategic Planning

While each individual and family has a unique mix of goals and requirements, they frequently share a need for planning and investment expertise and resources, and other support. Forward-looking, wise management is the most commonly needed ingredient.

Sign up to get Bitterroot Capital Insights delivered to your inbox

BCA is not for everyone – and we are proud of that distinction. We look for a select group of individuals (and their entities) whose financial position and preferences enable them to thrive while working with us.

We welcome your interest. Please give us at call at +1-406-556-8202 or fill in the form below to set up a confidential exploratory consultation.