Outsourcing of Family Office Services Expected to Grow

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:

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  • 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).

About the Author

Margaret Steen

Margaret Steen is the editor of FO Pro, The Family Office Professional. Based in Silicon Valley, she has written for Family Business Magazine for more than 15 years.


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