Single-family offices are often expensive propositions. They’re generally very much boutique operations employing high-caliber experts in the service of the very wealthy.
The costs of running a family office have always been a consideration, but have become even more scrutinized since 2008. According to Steffianna Claiden, founder and editor-in-chief of Family Office Review, “Both families with existing offices of some kind and families new to having an office have deduced that doing everything themselves can all too easily become a massively expensive headache. Hence the rise of ‘strategic outsourcing’ – the trick is figuring out which functions make sense to keep at home and which to farm out. The second challenge is finding and evaluating suitable providers and then choosing the right one. Land mine city, doing all of that.”