increasingly complex, family offices are looking to external providers for help.
In fact, when Ocorian, a provider of services to family offices, surveyed over 130 single- and multifamily offices, all the respondents said they use third-party services in some way. And 91% predict that family offices’ use of outsourcing will increase in the coming years, a figure that includes 28% who expect it to increase dramatically.
Currently, the most common uses of third-party support cited by the respondents are illiquid investments (cited by 63%), personal financial management (60%), liquid investments (48%) and extended family services (43%).
These areas are also among the areas respondents predict are most likely to see an increase in outsourcing over the next three years:
- Liquid investments (85% predict a slight or a dramatic increase)
- Extended family services (79%)
- Illiquid investments (71%)
- Wealth planning (70%)
- Personal financial management (68%)
- Assets of passion (65%)
- Repository of all key documents (64%)
- Philanthropy (62%)
- Family homes (60%)
Why would family offices outsource more services? Survey respondents provided several reasons, including to enable them to improve overall service levels (71%), to enable them to focus on core strengths (59%) or because clients expect it (54%).
Respondents also predict that the role of third parties in the family office space will evolve over the next three years. Some common advantages they foresee:
- Access to an increasingly globalized network of administration centers (72%)
- Access to a broader range of financial services and solutions (60%)
- Diversification of skillsets (49%)
- Sophisticated regulatory expertise (44%)
To learn more:
Read the report: Family Offices and the role of third party service providers.
Read news coverage: Family Offices’ Outsourcing Trend Continues — Survey (WealthBriefing) and Ocorian highlights family office outsourcing boom (BL Global).