The difficulty in managing wealth is directly proportional to the volume of assets. Smaller asset volumes can be managed by the person themselves if they have the sufficient time and knowledge or with the help of a financial advisory firm that manages and plans investments, adapting them to certain objectives.

However, when it comes to organising a considerable family fortune, other issues come into play, such as family cohesion and legal or tax advice, among others. It is at this time when the need may arise to create a Family Office, a privately held company aimed at preserving a family’s wealth across generations, managed as a single unit and which engages in investments, planning, taxation, investment funds, pension plans or property management. Family offices provide advisory and wealth management services to families in a personalised manner and with further control on wealth, with the intention of managing it comprehensively and capitalising on it, in addition to guaranteeing its preservation over time.

This is not uncommon. Today, families with substantial wealth use this format as a model for growth, investment diversification and, thus, risk protection. It is difficult to estimate the amount of family offices across the world due to the various definitions given to this concept, but we could say that there are approximately 20,000 single-family offices worldwide, and it is particularly noteworthy that more than half of them have been incorporated in the last 10-15 years.

In short, there is no doubt that family offices have acquired an increasingly significant role in various areas in recent years, becoming one of the fastest growing investment vehicles in the world today. But what other benefits do they bring?

Why create a Family Office

  • Confidentiality and privacy of matters relating to personal or business wealth and investments.
  • Governance and management structure aimed at dealing with the complexities inherent to the family’s wealth in a more transparent manner, helping the family to avoid future conflicts.
  • Alignment of interests, ensuring a balance between the financial advisors and family.

Property investment and security Real estate assets are one of the main sources of wealth for families, a capital that increases over time and that owners seek to preserve in the best possible way. Thanks to the relative stability of this kind of assets, many family offices have decided to manage, acquire, rent or refurbish premium buildings or homes in recent years.

In this case, it is important that the businessperson and their family environment plan and study their wealth, ensuring that they have the financial protection in place that allows them to carry out their day-to-day activities with full peace of mind.

Family offices require your capital to be secured, and they need to know what they can do with your funds, in which products they can invest, and thus develop an investment plan. However, all of this ceases to make sense if the family’s wealth is not protected appropriately. Without an insurance policy that provides proper cover and adequate advice that allows establishing a capital investment roadmap tailored to the needs of each customer, the most common option for preserving family wealth becomes restricted.

  • RibéSalat, with over 30 years of experience in managing family wealth, has expert professionals who will offer you personalised advice on how to manage your wealth and capitalise your investments.

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