Raising capital from family offices

Family Office Service Providers and Partners: What to Know

Family Office Service Providers & Partners - What to Know | EP 5

Families and entrepreneurs who are setting up a virtual or single family office and need to know which service providers to line up.

What you will hear

A motel buyer in this talk found out two weeks after closing that a carbon monoxide leak was not covered by the standard policy. In the speaker's telling, an added rider requested by hand covered it. Richard C. Wilson uses the story to show why many family offices look for an insurance agent who reads the details and checks each property for special coverage needs.

The episode is part five of a series on starting a family office. It covers team size, estate planning topics, insurance, accounting, reporting software, attorneys, wealth advisors and direct investment advisors. Richard C. Wilson also explains why the best providers usually serve many clients, and why a full-time exclusive hire is not the goal.

Five points worth keeping

1. Team size depends on your structure. A virtual family office may only need a part-time CIO or CFO. A full single family office usually hires four to six full-time professionals or more. Some staff may sit inside a holding company instead.
2. Insurance needs a careful specialist. The speaker notes that pools, hot tubs, trampolines, zip lines and swings are the kind of features families often review with an insurance professional. Umbrella and key man coverage come up too, along with unusual cases like a nanny or an au pair driving the family's cars.
3. Planning differs from reporting. Richard C. Wilson distinguishes between someone who reports what happened and someone who plans ahead. He suggests keeping those two roles separate in your mind, and many families discuss the details with a qualified tax professional.
4. Ask hard questions on reporting software. Many asset reporting vendors do not list prices. They first learn how complex your situation is and what your net worth is, then set the price.
5. Choose the best, not the cheapest. The best providers in each field tend to serve many clients and learn across them. Richard C. Wilson advises against hiring people who work only for you. He also says to review your wealth advisor as your wealth grows.

Worth quoting

Facts from this talk

• Richard C. Richard says his team closes two to six contracts and agreements every month on his own balance sheet and business.
• Most full single family offices hire four to six full-time professionals, according to the talk.
• The talk names only two wealth advisors, out of a thousand people the team works with, who fit families worth 20 million, 50 million or 100 million dollars.

General education only. Not legal, tax or investment advice.

Talk to a securities attorney to explore options around deal term negotiation, estate planning structures and insurance and tax planning. Do not use AI to write your own legal agreements.

Related questions

• Do family offices co-invest alongside other investors?Yes, many family offices invest alongside other investors, and they often feel more comfortable when another respected investor is already in the deal.
• What is the difference between single and multi-family offices?A single family office works for one family and is built the way that family wants.
• How do I find the decision maker at a family office?Start by meeting the family through advisors, events and the people who manage their investments.

Questions about this video

Put this into practice with the investor meeting follow-up checklist. See all raising capital from family offices resources.