In-House Family Office Services
A Registered Investment Advisory (RIA) firm faced a critical decision regarding whether to bring administrative family office services in-house or outsource to a partner firm. Uncertainty loomed as they sought the right path to ensure efficient wealth management for their high-net-worth clients. They initially engaged with our coaching services to gain clarity on their options and make an informed decision.
The firm had been primarily focused on investment advisory services for affluent clients. However, their clients increasingly expressed a desire for comprehensive family office services, including bookkeeping, bill payment and other coordination services. The firm felt strongly they should address this growing demand but was unsure whether to develop these services internally or collaborate with an external partner firm.
Our initial coaching engagement began with an in-depth assessment of the firm’s current capabilities, goals, and client requests. We evaluated their existing infrastructure, team expertise, and financial resources to gauge their readiness for in-house family office services.
Solutions
A feasibility study was conducted to determine the financial viability of establishing in-house family office services. This involved estimating the costs associated with hiring additional staff, technology investments, and ongoing operational expenses. We also assessed the qualifications and skills of their current team members and identified areas where additional expertise might be needed to offer the family office services effectively.
Simultaneously, we evaluated potential partner firms that could provide outsourced family office services. This included assessing their track record, reputation, cost structure, and the alignment of their services. We presented the RIA with a comparative analysis that outlined the pros and cons of both in-house and outsourced options. This included financial projections, risk assessments, and scalability considerations.
We held meetings with key stakeholders within the firm, including senior partners and key decision-makers. These discussions allowed us to address concerns, gather input, and ensure that the decision aligned with the firm’s strategic vision.
After several months of comprehensive analysis and discussions, the firm made the decision to build family office services in-house. Their choice was driven by several factors, including a strong internal team, a desire for greater control over client relationships, and the potential to differentiate their services in the market.
Following the decision, the firm then hired White River to create custom manuals including their policies and procedures, templates, and client communication plan. We then embarked on a full implementation plan that included hiring additional staff, investing in technology and infrastructure, and developing a marketing strategy to promote their expanded service offerings.
Not only has the firm successfully integrated in-house family office services into their offerings, but clients have responded positively to the expanded services, and the firm has reported an increase in assets under management (AUM) as a result. The decision to build services in-house has allowed the firm to deepen client relationships, enhance their competitive position, and capture a larger share of the high-net-worth market.
Navigating the decision between in-house and outsourced family office services required careful assessment, analysis, budgeting, and strategic planning. Our coaching and consulting services provided the firm with the guidance and insights needed to make an informed choice that aligned with their 20 year vision and client needs. While this process took time, it was the right thing to do so the firm could truly say they had evaluated the options and knew what they were getting into.
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