Family Office Operations (Liechtenstein)

TL;DR

This content discusses the three operating models of family offices, including the outsourced model, the expert generalist model, and the institutional offering.

Transcript

those richard wilson company from Liechtenstein and the family offices group so they want to talk to you about the three operating models that family offices can choose from when running their business should be helpful if you're trying to understand a family offices better or create a family office abroad so the three models are one source model t... Read More

Key Insights

• 🧑‍💼 Family offices can choose from three operating models: outsourced, expert generalist, and institutional offering.
• 🧑‍💼 The outsourced model is used by small family offices and involves outsourcing all services to external providers.
• 😤 The expert generalist model is the most common and consists of an executive director and a team of specialists.
• 🧑‍💼 The institutional offering model is only feasible for family offices managing billions and requires a significant budget.
• 👻 The expert generalist model allows for tailored services and deep expertise in core areas.
• 🛟 The institutional offering model is the most expensive and reserved for the ultra-wealthy.
• 🖤 The outsourced model is lean and cost-effective but lacks in-house expertise.

Questions & Answers

Q: What is the outsourced model in family offices?

In the outsourced model, one person oversees the family office but outsources all services to external providers. This model is common among small single or multi-family offices.

Q: How does the expert generalist model of family offices work?

The expert generalist model has an executive director with extensive experience in areas like taxation and asset management. They lead a team of specialists who handle various aspects of the family office's operations.

Q: What is the institutional offering model of family offices?

The institutional offering model is the most expensive. It requires a large budget to retain the necessary talent. This model is typically feasible for family offices managing billions of dollars.

Q: Why is the expert generalist model the most common?

The expert generalist model is popular because it combines the expertise of an executive director with specialized support staff. This model allows for a comprehensive range of services tailored to the family office's needs.

Summary & Key Takeaways

• The first operating model is the outsourced model, where one person manages the entire family office and outsources all services.

• The expert generalist model is the most common. It involves an executive director with deep expertise in core areas, along with a team of specialists.

• The institutional offering model is the most expensive and is only affordable for family offices managing billions of dollars.