Family offices are a special type of investor that often operates in secret but plays a significant role in the financial market. In this blog article, we take a look at family offices: who they are, what they do, how to find them and why they are attractive to companies.

What are family offices?

Family offices are private wealth management companies that manage and invest the assets of wealthy families. They act as professional investment managers to preserve, grow and protect the family's wealth across generations.

What do family offices do?

The primary role of family offices is to manage and invest their families' wealth. These include:

• Asset management: Family offices assume responsibility for managing the family's wealth, including diversifying assets, reducing risk and maximizing returns.
• Make investments: Family offices invest their families' wealth in a variety of asset classes, including stocks, bonds, real estate, private equity, hedge funds and alternative investments, seeking long-term returns and broad diversification.
• Financial planning: Family offices support the family in developing and implementing long-term financial goals and strategies, including tax planning, succession planning and philanthropic activities.

Who are family offices?

Family offices are set up by wealthy families or high-net-worth individuals to professionally manage their wealth. These families often have significant wealth built up over generations.

How do you find family offices?

Family offices are known for their discretion and privacy, so they are often difficult to find. However, there are a few ways companies can identify potential family offices:

• Industry events: Family offices occasionally attend industry events, conferences and networking events. This can be an opportunity to get to know them personally and network.
• Specialized service providers: There are specialised service providers and consultants who specialize in family offices and can assist companies in identifying and approaching potential family offices.
• Industry associations: Some industry associations and organizations provide databases or membership directories that list family offices. This can be a source for finding potential investors.
• Personal recommendations: Personal recommendations and networks can also be a way to find family offices. Through personal contacts and relationships, companies may be able to gain access to family offices.

Why are family offices attractive for companies?

Family offices offer companies an attractive financing option due to their long-term perspective, flexibility and focus on sustainable investments. They are often willing to invest in companies that have long-term growth potential and a clear value creation strategy.

Conclusion

Family offices are a unique type of investor that plays an important role in the financial market. They offer companies an attractive financing option and can help promote long-term growth and success. Although they often operate in secret, there are ways to identify and find potential family offices.