What is a Virtual Family Office?
Private wealth is on a drastic rise. Most high net worth individuals, some of whom accumulated lots of wealth back in the 90s and newbies tech entrepreneurs sort to preserve and invest their fortunes. It led to the emergence of family offices.
The most common forms of family offices are:
- Single-family office
- Multi-family offices For the wealthy, the single-family office is often the most sought after way to control and manage their finances. Typically, the expertise provided by single-family offices is a wealth management and support services. And while most single-family offices have relatively thrived, it is not always a walk in the park as the costs implications are way hefty. It is why some ultra-high net worth individuals opt for multi-family offices.
Traditionally, most family offices have had a couple of relative offshore specialists whom they turn to ad hoc. This arrangement has increasingly taken root over the years. Many multi-family offices are becoming a core group of professionals specialized in diverse tasks, usually available on call. This kind of arrangement is termed a virtual family office.
Enter the Virtual Family Office
In light of vast technological advancements and talented professionals, the VFO model is rapidly growing and, as a result, proving to be a superior option to traditional family offices. Essentially, it is achieved through an apt systematic process in collaboration with the human element involved.
Like single-family offices, VFOs are designed for ultra-high net worth individuals or wealthy families. They offer bespoke client-centered services built on certified methodologies. The main package of this decentralized technology motivated approach is that there could be substantial cost savings.
Why go Virtual?
- VFO advisors work hand in hand with professionals from every field.
- The human element involved between clients and professionals ensures that the client’s interests always get the bigger picture, factoring in all recommendations. Why is this so? Their network of consultants always put this within their functions, even if it is farfetched.
- After strict vetting and scrutiny of the consultant’s ideas, only the best ideas survive and, supple strategies are put in place to drive unique service delivery to the client.
- Traditionally, multi-family offices heavily focused on finances, while virtual family offices consider much of soft assets.
- Ultimately, we see that VFOs not only offer financial and business services. It gives the clients access to the world’s best professionals in each category, ultra-fine services and preferential undertakings. All of which provide an array of professional services under one roof thereby, optimising efficiency and profitability.