Learn why family clients are looking to start a multi-family office in our second episode of the Family Office Vlog Series with Asena CEO Peter Harper.
Peter Harper: Hey, guys. Peter Harper, Managing Director and CEO of Asena Family Office. For those of you who are not familiar with our business, we advise foreign families and private clients on U.S. direct investments in mergers and acquisitions.
Peter Harper: So today, I wanted to talk about the definition of a multi-family office (and) what is it? The term “family office” has become more ubiquitous over the last decade as the transference of money, of significant private money, away from major institutions into the hands of private family managers continues to grow. So in my last video where I talked about what it was to be a family office, right, a multi-family office is just that on a fractional basis.
So, to recap, in a typical family office, (especially a) single family office, you’ll have a C suite. Not unlike you would have in an operational business that covers tax, accounting, finance, and legal wealth management, investments, (and so on). So (then) general admin for the family.
Peter Harper: In a multi-family office, it’s simply that on a fractional basis. A family may not have the wealth to be able to sustain the full C suite. And for a lot of single family offices, it can cost $3 to $10 million just to run the executive infrastructure for the family.
Peter Harper: So they may not have the wealth that can sustain that type of costs or to run it. So they say, “We want someone on an outsource basis to fractually manage all these things for us as a family.” Right? Obviously, when you’re doing it fractual, there’s going to be some reduction in the cost for doing that, or they simply don’t want the headache of managing all those people internally.
Peter Harper: So this is the core of what Asena as a business does. We provide fractional support for families that either choose not to run their own C-suite or run their own service lines because they don’t have the wealth to sustain that or because they don’t want the headache of that. And we do that across tax, accounting, estate planning, wealth management, M&A advisory, and legal.
Peter Harper: So if you want to know more about family offices or you need help with your family office, please reach out.
Peter Harper: Cheers.