Family Office Industry
Family Office Industry
Family Office Industry Growth
A recent article came out in the WSJ noting how popular starting a family office is these days. Maybe working for a family office will be as sought after as working for a hedge fund in the years to come…
Here’s an excerpt from the article:
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The people who run “Family Offices” — private operations dedicated to managing the money and daily lives of the rich — are increasingly getting rich themselves.
Wealthy Americans have set up 3,000 to 5,000 family offices, experts estimate. The growing number of families going this route, combined with the increasing complexity of investing, has led to heightened competition for the relatively limited pool of people qualified to manage these offices. Salaries for high-level family-office managers have risen more than 20% a year since 2002, reaching $3 million a year or more for the most experienced investment managers.
That’s why some families have taken to poaching staff from other families. Others are showering their family-office chiefs with plush perks like club memberships, free meals, invitations to elite black-tie charity events — and use of the family jet.
One family even offered guaranteed admission to an elite private school for the children of its family-office chief, since the patriarch of the family is a trustee of the school, says Jane Bierwirth, a New York-based executive search consultant at Higdon Partners who helps the rich find office managers. “People are getting more creative with perks,” she says.
Competing With Wall Street
And a growing number of wealthy families are dangling the biggest perk of all: allowing their family-office manager to become a “participant,” investing his or her own funds along with the family money in big deals with the possibility of becoming rich themselves. Richard Rainwater, the investment adviser who became wealthy managing money for the Bass family of Texas in the 1980s, has become the model for such family-office chiefs.
“The game has totally changed over the past five years or so,” says Bob Hamshaw, managing director of the family office for the Santo Domingos, a wealthy South American clan. “Today, there’s much more demand for the good investment people and true professionals.” Read more..
- Richard
Related to Family Office Industry
- Investing Book
- Family Office Services
- Family Owned Businesses
- Family Office Jobs
- Family Office Consultants
- Virtual Family Offices
- Philanthropic Giving
- Family Office Marketing
- Family Office Resources
- Fund of fund
Permanent Link: Family Office Industry
Tags: Family Office Industry, Family Office Industry Trends, Family Office Trends, family offices, family office
