More Weath, More FO's, and More Need for Tech
According to FINTRX, a Boston-based family office data and research platform, there are currently 2,350 Family Offices (including both SFO's and MFO's) with $50 million or more in assets. in the United States.
While that number might seem on the small side, this figure is up from 1,910 just a year ago- a 23% increase.
Similarly, Ernst & Young estimates that there are around 10,000 SFO's globally, with half of these set up in the past 15 years.
The evidence suggests FO's both in the US and around the globe are increasing at an exponential rate.
Enter the "Virtual Multi Family Office." The "VMFO" is more about doing a few key functions in-house and outsourcing the more complex functions to outside professionals with specific expertise.
These tasks can range from implementing technology to automate the mundane (such as pulling and collating performance reports) to the more complex (such as preventing physical/virtual security breaches and building bespoke solutions for information flow and management).
And that's just a piece of what we do here at InfoGrate- we partner with your FO as a member of your wider "VMFO;" we take on the complex technology and infrastructure issues so families can focus more on things like succession and values.
In any case, the concept of the VMFO isn't going anywhere; with the connectivity of today's modern world, it's easier than ever for affluent families to seek the best in the business to manage every aspect of their weath, from the real estate and trust funds to the far less glamorous (but nonetheless essential and invaluable) operational functions.