Family Business Office Investment Strategy

Investment Strategies for Family Business Office

What is a Family Business Office?

It is basically a multi-client family office advisory firm that provides family office services to its clients. FBOs offer their clients management and an interface between families, their children, their business enterprises, and professionals. Family Business Offices are a popular investment choice for affluent families.

An FBO understands the financial goals of the client families and suggests investment options based on that. The FBO caters to the various financial needs of the client families. They offer services such as portfolio management, succession planning, generational wealth transfer, business strategy planning, tax planning, etc.

A family business office provides a number of services to its clients:

  • Payment of bills
  • Bookkeeping
  • Reconciliation of Income
  • Income Tax organization
  • Fiduciary Services
  • Managing Insurances
  • Investment Planning
  • Healthcare Management

They even provide assistance in household maintenance by organizing services of plumbers, locksmiths, gardeners, cleaners to name a few.

Investment strategies for Family Business Office are based on the financial objectives of the various members of the investment. They are generally planned for a long-term keeping the future generations in mind.

Family Business Offices choose investment strategies keeping the retirement and succession planning in view.

Some of the popular Family Business Office Investment Strategies are:

Venture Capital

It is an investment in small businesses and start-ups that show a potential for growth. It is a popular investment option for family offices.

Hedge Funds

It is a common pool of funds in which individual investors invest. These funds are invested in other strategies for better returns. This method of investment provides protection against the ups and downs of the stock market. But of late it has become unpopular because of the low returns it has been giving compared to the other investment options.

Real Estate

These are residential and commercial properties in which investors invest for long-term gains. Investment in real estate also provides the owner of the property the benefit of availing a rental income while staying in another home.

Private Equity

It is funds that investors directly invest in private companies. These are companies that are not quoted on stock exchange.

Commodities

Investment in commodities implies purchasing raw commodities such as precious metal bullion or Exchange Traded products (ETPs). These are a volatile investment option.

Tangible Assets

They provide an avenue for diversification. You can invest in tangible assets such as a house where you live, car, a piece of art, jewelry, etc.

However, this is not an exhaustive list of investment strategies for family offices. There are other avenues of investment for them.

Family offices invest by selecting various investment strategies to create a diversified portfolio. The selection of the investment options is based on the financial market. Therefore, it is recommended to seek the services of an experienced financial consultant to plan your portfolio.

One of the best financial consultants who manages Family business office is Greg Silberman. He is based in Georgia, Atlanta. He is well aware of the dynamics of the financial market and he suggests investments to his clients based on that.