A virtual or outsourced family office gives a family family-office services without building a full in-house team. A small core team, or a lead adviser, coordinates outside firms for accounting, tax, investments and legal work.
How it works
The family usually keeps one or two trusted people, often a controller or chief of staff, and hires specialist firms for everything else. Technology ties the reporting together.
Who it suits
Families below the size where a full single family office pays for itself, families who want to test the model before committing, and families whose needs change year to year.
Pros and cons
| Pros | Cons |
|---|---|
| Lower fixed cost | Less control over each provider |
| Access to specialists | More coordination work |
| Easy to scale up or down | Data spread across firms |
The hire that makes it work
A virtual office lives or dies on its coordinator. The right controller or chief of staff keeps outside firms on schedule and gives the family one clear picture. Talk to us about that hire.
Questions
What is a virtual family office?
A family office model where a small core team coordinates outside firms instead of employing a full staff.
Is a virtual family office cheaper?
Usually, because the family pays for services as needed instead of carrying full-time salaries.