SINGAPORE - Family offices come in a range of shapes and sizes but their central mission statement - to manage wealth - rarely varies.
A single family office caters to the needs of just one family. Leaner ones can focus on investment and wealth management only, with a small team of just three to five professionals and a couple of family members.
Others can be large organisations, with full-time staff overseeing various activities like investment management, tax advisory, philanthropic activities and business operations.
A multi-family office, as the name suggests, manages the riches of multiple wealthy families that may not be related to each other.
Besides managing investments, there can be lawyers, tax advisers, trustees and accountants on hand to support needs that range from the family business to real estate, private equity, yachts, aircraft and art or wine collections.
"A single family office usually only makes sense for the families with at least US$100 million," noted Mr Gary Tiernan, managing partner at Golden Equator Wealth, a multi-family office here.
"Joining a multi-family office allows for economies of scale benefits for families, and also often brings greater access to experienced investment professionals without the downside of managing a separate business."
Ms Lim Li Li, head of global investors and family offices at Bank of Singapore, noted that family offices here are typically structured with an investment holding company and an asset management arm.
Investment managers oversee issues such asset allocation across all banking relationships and carry out due diligence on potential investments.
Investment decisions can be made by the investment manager, a committee, or ultimately, a member of the family.
In a nutshell, family offices provide structure and governance over wealth.
Mr Lee Lung Nien, chairman of South Asia at Citi Private Bank, said: "In Asia, there has been a tendency to appoint family members to run them. However, that tends to create issues, including the lack of expertise needed and so we now see more external hiring.
"Professionally run family offices tend to have more governance and structure in place for proper checks and balances.
"At the same time, they would also have a family member or trusted adviser of the family as part of the team for another layer of oversight."
How are they regulated
Single family offices are not regulated by the Monetary Authority of Singapore (MAS) as they manage their own money, a spokesman said.
But where they manage assets for third parties, family offices will be subject to fund management licensing and regulatory requirements under the Securities and Futures Act.
The spokesman added: "We understand that there has been heightened interest in single family offices from the recent news involving Archegos Capital.
"MAS is monitoring developments closely on this front."
Which family offices are here
Examples of family offices reportedly set up in Singapore:
The family office of Google co-founder Sergey Brin has set up a branch, Bloomberg reported in February. The California-based firm is called Bayshore Global Management and established an office here late last year.
Hotpot restaurant chain Haidilao co-founder Shu Ping was reported to have opened a family office here last March. She was appointed the sole shareholder and director of Sunrise Capital Management in July 2019.
British billionaire James Dyson, who founded vacuum cleaning giant Dyson, was said to have incorporated his family office here in 2019, known as Weybourne Group.
Billionaire hedge fund founder Ray Dalio was reported to be opening a family office here last year to run his investments and philanthropy in the region. Mr Dalio founded Bridgewater Associates, an American investment management firm.
SINGAPORE - Family offices come in a range of shapes and sizes but their central mission statement - to manage wealth - rarely varies.
A single family office caters to the needs of just one family. Leaner ones can focus on investment and wealth management only, with a small team of just three to five professionals and a couple of family members.
Others can be large organisations, with full-time staff overseeing various activities like investment management, tax advisory, philanthropic activities and business operations.
A multi-family office, as the name suggests, manages the riches of multiple wealthy families that may not be related to each other.
Besides managing investments, there can be lawyers, tax advisers, trustees and accountants on hand to support needs that range from the family business to real estate, private equity, yachts, aircraft and art or wine collections.
"A single family office usually only makes sense for the families with at least US$100 million," noted Mr Gary Tiernan, managing partner at Golden Equator Wealth, a multi-family office here.
"Joining a multi-family office allows for economies of scale benefits for families, and also often brings greater access to experienced investment professionals without the downside of managing a separate business."
Ms Lim Li Li, head of global investors and family offices at Bank of Singapore, noted that family offices here are typically structured with an investment holding company and an asset management arm.
Investment managers oversee issues such asset allocation across all banking relationships and carry out due diligence on potential investments.
Investment decisions can be made by the investment manager, a committee, or ultimately, a member of the family.
In a nutshell, family offices provide structure and governance over wealth.
Mr Lee Lung Nien, chairman of South Asia at Citi Private Bank, said: "In Asia, there has been a tendency to appoint family members to run them. However, that tends to create issues, including the lack of expertise needed and so we now see more external hiring.
"Professionally run family offices tend to have more governance and structure in place for proper checks and balances.
"At the same time, they would also have a family member or trusted adviser of the family as part of the team for another layer of oversight."
How are they regulated
Single family offices are not regulated by the Monetary Authority of Singapore (MAS) as they manage their own money, a spokesman said.
But where they manage assets for third parties, family offices will be subject to fund management licensing and regulatory requirements under the Securities and Futures Act.
The spokesman added: "We understand that there has been heightened interest in single family offices from the recent news involving Archegos Capital.
"MAS is monitoring developments closely on this front."
Which family offices are here
Examples of family offices reportedly set up in Singapore:
The family office of Google co-founder Sergey Brin has set up a branch, Bloomberg reported in February. The California-based firm is called Bayshore Global Management and established an office here late last year.
Hotpot restaurant chain Haidilao co-founder Shu Ping was reported to have opened a family office here last March. She was appointed the sole shareholder and director of Sunrise Capital Management in July 2019.
British billionaire James Dyson, who founded vacuum cleaning giant Dyson, was said to have incorporated his family office here in 2019, known as Weybourne Group.
Billionaire hedge fund founder Ray Dalio was reported to be opening a family office here last year to run his investments and philanthropy in the region. Mr Dalio founded Bridgewater Associates, an American investment management firm.