The Concept of A Family Office
The concept of a family office originated in the United States in the 1800s after a period of rapid wealth accumulation similar to what we are witnessing in India today.
Entrepreneurs like Andrew Carnegie and John Rockefeller amassed vast fortunes riding a crest of industrialization and phenomenal growth.. These two in particular lay the foundations of modern philanthropy, family wealth management practices and started successful Family Offices which perpetuated their wealth and solidified their legacies, which are intact even today..
Issues Facing India's Ultra High Net Worth Families
Today, the modern ultra high net worth Indian family faces similar issues faced by their global predecessors. Private banks, wealth management firms, accountants, CAs and other financial services providers may not be equipped to handle the myriad complex needs of the wealthy.
The Indian wealth management and financial services space in the short span of 20 years has seen major scandals, ponzi schemes and severe over promising and under delivery of financial performance. Service providers see no risk in making promises and misrepresenting facts and misleading investors. Wealth management, traditionally a respectable profession the world over, is looked at with suspicion and contempt by many families.
Wodehouse Capital Advisors was created as a very different kind of asset manager, with a fundamentally simple business model, interests completely aligned with clients, to help families with exceptional wealth ensure the preservation and growth of their financial assets and family heritage.
Client Benefits
Wodehouse Capital aggregates and focuses resources to facilitate a common interest in asset protection, cost control, financial education, family philanthropy and a host of other needs.
Wodehouse provides customized service levels and confidentiality not available from larger product-driven financial institutions. Wodehouse prides itself on the following differentiators:
1. Independence & Objectivity - Wodehouse does not sell traditional products that a family might typically encounter from a brokerage firm and generally are not compensated for the products utilized by clients. MFOs usually position themselves as an objective provider of advice that places the interests of the family first.
2. Entire Spectrum of Financial Services: MFOs provide a full array of services and typically oversee their clients’ entire financial universe. By possessing full information about their clients investments, tax situation, estate plan and family dynamics, the MFO is best positioned to structure and administer the clients’ financial holdings in an optimal manner.
3. Diverse Skills and Deep Specialties Under One Umbrella: MFO professionals provide a wide array of advice and assistance to their clients. MFOs also have to be able to provide specialty knowledge on certain topics such as: income taxation, estate planning, and investments.
4. Top Class Service : MFOs have high average account sizes (usually in the tens of millions) and low client to employee ratios (around 3 to 1 range). Large account sizes combined with low client-to-employee ratios allows a great deal of focus and attention on each client family. Meetings with clients often occur many times a month.
5. Multi-Generational Planning: MFOs typically work with the entire family – the patriarch/matriarch, children and grandchildren. Planning encompasses the family’s goals which typically includes passing wealth down to lower generations in a tax efficient manner. Children and grandchildren are clients and are counseled on investments, taxes, estate planning, and philanthropy from an early age.
We will from time to time coordinate and moderate family meetings for client's families.
6. Cost and efficiency : By combining the purchasing power of multiple wealthy clients, family offices are able to deliver cost savings and operational efficiency to their clients.
