The appeal of multifamily offices is strong and intensifying. A 2017 study of 206 ultra-wealthy individuals with a net worth of $30 million or more found that nearly three-quarters said they'd rather work with a multifamily office than other financial services providers.
Multifamily offices are appealing to high-net-worth clients because they are not about pitching services and products, but instead concentrate on developing a deep understanding of each client to provide a suite of interconnected, state-of-the-art solutions.
When it comes to lifestyle services, two areas that are frequently in strong demand are concierge medical services and family security specialists.
Concierge medicine: “The drivers behind concierge medicine are the clients' desire for loyalty, efficiency, and competence," said Dr. Daniel Carlin, the founder and CEO of WorldClinic. "There are several versions of concierge medicine; most of them are small practices with conventional office hours and a specialist referral network limited to their local hospital staff. Our affluent families require a far greater set of resources, set up to deliver exceptional personal care on a 24/7, anytime, anywhere-in-the-world basis.”
Family security specialists: Some aspects of family security are well defined, such as close protection personnel or pre-employment screenings. But other aspects, such as fraud detection, litigation support or crisis response, are more fluid in nature and often require bespoke solutions. Being able to minimize or eliminate security problems and threats requires a deft touch. The best family security specialists work very closely with all the stakeholders to ensure that they understand every option available to clients, and, when they have decided on a course of action, the specialists take action.
A characteristic of all family offices is outsourcing. Many capabilities are external to the organization and are brought in as they are needed.
Selecting the right concierge medical practice or the correct family security specialist can literally be the difference between life and death. The role of advisors in a multifamily office is to spot high-net-worth client needs. Multifamily offices' knowledge of firms like WorldClinic and other best-in-class providers enables them to be responsive. Coordinating lifestyle specialists is a skillset high-caliber multifamily offices develop that enables them to do a more comprehensive job serving clients.
Multifamily offices are increasingly becoming the preferred financial provider to the exceptionally affluent. A strong appeal is their ability to bring an entire menu of top-of-the-line capabilities to their clients. Issues pertaining to health and family security can instantly eclipse financial matters, so concierge medicine and private security can be critical and differentiating services for a multifamily office. Having a vetted network of specialists in place that can be deployed as soon as situations emerge is just one facet of the thoughtful and attentive service associated with family offices.
Russ Alan Prince, president of R.A. Prince & Associates, is a consultant to family offices, the ultra-wealthy and select professionals.