Virtual family office
outsourced family office
Other languages: Deutsch · Français · Español
A family office with a small core that coordinates and oversees external specialists such as portfolio managers, tax advisers and trustees.
The model lowers fixed costs but requires a central data basis, so that the overall view of wealth, structures and deadlines is maintained.
In practice
A virtual family office depends on coordination: the small core directs portfolio managers, tax advisers, trustees and banks and needs a reliable overall view to do so. In practice, a central platform has proven useful, bringing together structures, wealth, documents and deadlines, with external partners given access only to their own area. Responsibility and knowledge thus remain with the family, even when the execution is outsourced.
Distinctions and common mistakes
Outsourcing the execution does not outsource the responsibility: the family remains responsible for decisions and for overseeing its service providers. A common mistake is to let each adviser keep their own records, so that nobody has a complete and current picture of the structure.
Relevant in: Switzerland · Germany · Austria
Related terms
- Single family office
- An organisation that manages exclusively the wealth and affairs of a single family.
- Multi family office
- A service provider that looks after the wealth and affairs of several unrelated families.
- Embedded family office
- A family office function located within the family business: employees of the company look after the family's private wealth alongside their regular work.
Mentioned in these guides
- Virtual family office: lean core, strong networkWhat a virtual family office is, who it suits, how a lean core coordinates external specialists and why a shared data foundation is the key requirement.
- Your own family office: advantages and disadvantagesControl, confidentiality and focus on one family versus fixed costs, key-person risk and regulation: a sober assessment before setting one up.