The global super-rich (those with $500 million or more) population is growing at a tremendous rate. Moreover, the amount of money they control is increasing even faster. Because of this growth, more and more single-family offices are being created. The result is an increasingly attractive market for a variety of professionals, such as investment managers, lawyers, accountants and life insurance experts.
This trend has not been lost on these professionals, as growing numbers of them seek to cultivate the super-rich and single-family offices. The logic for doing so is very straightforward: Super-rich and single-family offices can be exceptional clients. For those professionals that can provide substantial value, remuneration is considerable. Moreover, these relationships can be leveraged into business opportunities.
For professionals, the money they can earn working with the super-rich and single-family offices is—relatively speaking -—better than with any other type of client.
But there are hurdles that need to be surmounted to be successful with these cohorts.
More than ever before, the professionals engaged by the super-rich and single-family offices must be exceptionally talented and capable. They must have access to state-of-the-art resources and expertise. The super-rich and single-family offices are making great efforts to evaluate their options and the professionals they’re choosing are often recognized authorities in their respective fields. In addition, they are very comfortable getting second and third opinions.
The super-rich and single-family offices are not in a hurry. They usually have other matters that are higher priority. This often translates into a fairly long sales cycle. In fact, the sales cycle can take years. Professionals cultivating the super-rich and single-family offices have to be patient and persistent. It is going to take time to form a relationship and the professionals have to persevere.
The super-rich and single-family offices are likely to be demanding clients. Professionals must deliver a “Wow” experience consistently. Being available to the client is also critically important. While this can be a function of the nature of the expertise the professional is providing, the service model must be designed to be exceedingly responsive.
All in all, the super-rich and single-family offices can be tremendous and wonderfully profitable clients. At the same time, they are unlikely to be appropriate for many professionals as the requirements to being effective with these cohorts are sizeable.