A real Single Family Office (SFO) is a highly customized entity designed to manage the financial and personal affairs of a wealthy family. While the structure and services may vary, the core functions of a properly established SFO generally include:
1. Investment Management & Oversight
- Asset allocation and portfolio construction
- Direct investments (real estate, private equity, venture capital)
- Public market investments (stocks, bonds, hedge funds)
- Due diligence on investment opportunities
- Risk management and hedging strategies
- Performance monitoring and reporting
2. Wealth Planning & Structuring
- Estate planning and intergenerational wealth transfer
- Trust and foundation administration
- Tax optimization and structuring (domestic & international)
- Philanthropy and charitable giving strategy
- Asset protection and liability management
3. Financial & Accounting Management
- Consolidated financial reporting
- Cash flow management and liquidity planning
- Expense management and budgeting
- Tax preparation and compliance
- Banking relationships and credit facilities
4. Legal & Regulatory Compliance
- Structuring legal entities (LLCs, trusts, holding companies, etc.)
- Ensuring regulatory compliance across jurisdictions
- Family governance policies and procedures
- Privacy and cybersecurity protection
5. Family Governance & Succession Planning
- Education and mentorship for next-generation family members
- Defining family mission, values, and legacy
- Establishing a family council or advisory board
- Conflict resolution and mediation
- Succession planning for wealth and leadership transition
6. Lifestyle & Concierge Services (if included in the scope of the SFO)
- Private aviation and yacht management
- Real estate management (personal residences, vacation homes)
- Security and risk assessment (physical & digital)
- Healthcare and wellness coordination
- Personal staff management (household employees, drivers, assistants)
7. Philanthropy & Impact Investing (if applicable)
- Structuring and managing private foundations
- Grant-making and charitable giving
- Socially responsible and impact investment strategies
8. Strategic Advisory & Family Legacy Planning
- Navigating complex family dynamics
- Advising on business succession if applicable
- Facilitating strategic partnerships and networking opportunities
A real SFO is not just a high-end financial advisory firm or a team managing a family business—it is a dedicated, private entity focused on the family’s long-term financial and legacy goals, funded from the family’s personal wealth rather than any business operations.
