Question: What due diligence questions should I ask a family office that I am evaluating?
Answer: Of course, you should seek legal and qualified financial counsel when evaluating family offices so please do not interpret this as all-encompassing advice.
As a starting point however, the seven questions below are fundamental and should probably be asked by everyone who goes in to meet with a family office that they may hire.
- What types of ultra-affluent clients does the family office serve?
- Can you speak with a few of those clients as references?
- How thorough and objective is the fund manager selection process?
- What is the portfolio construction methodology used by the family office?
- What family office governance best practices are in place today?
- Does the family office show a long-term commitment?
- What are the top three strengths and top three genuine weaknesses of the family office service offering compared to the competition?
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