Multifamily office gains favor with high-net-worth investors, study says
High-net-worth investors are moving their money to multifamily offices, according to a new study that will be released Monday by New York-based accounting and financial services firm Rothstein Kass.
High-net-worth investors are moving their money to multifamily offices, according to a new study that will be released Monday by New York-based accounting and financial services firm Rothstein Kass.
Fully 40% of wealthy investors who moved money this year said they had chosen a family office as their new provider, according to the study, “The Multifamily Office Solution.”
High-net-worth families are “gravitating to the family office model because of the holistic approach to wealth management and personalized attention that they can provide,” said Rick Flynn, a principal and head of Rothstein Kass’ Family Office Group, which offers accounting, tax, cash management, budgeting and bookkeeping services for management companies, fund managers and chief financial officers.
“Declining net worth and persistent market volatility have compelled some wealthy families to reassess long-term priorities,” he said.
An increasing number of investment advisory firms are also expressing interest in becoming multifamily offices, according to the report.
Being able to do a better job for families was the top reason given, followed by the opportunity to be more profitable and more competitive and to attract wealthier clients.
Multifamily offices’ ability to share resources, create economies of scale and offer due diligence and open architecture platforms is contributing to their popularity, Mr. Flynn said.
The survey, conducted in January, canvassed 110 investors with investible assets of $1 million.
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