Designing the Family Office in a new era of private wealth

©BCG

When set up properly, a family office (FO) can be a powerful tool to meet the financial needs of the wealthy. It can deliver customized services in such areas as investment, tax, estates, trusts, and lifestyle management. Given sufficient scale and expertise, an FO can also access lower investment fees, provide greater customization than that of many banks and wealth managers, and make direct investments into private equity and hard assets.

Perhaps not surprisingly, global assets under management in FOs have expanded rapidly, at a compound annual growth rate of 18% over the past five years, to an estimated $584 billion. At the same time, the families at the helms of these offices have begun to demand more from their wealth managers. Consistently low interest rates are compelling the wealthy to look for opportunities with higher returns and lower fees. Meanwhile, tightening regulations and greater digital reporting requirements are increasing the complexity of wealth management operations.

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BCG-Designing-Family-Office-in-a-New-Era-of-Private-Wealth-June-2017_tcm9-163182.pdf

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