The Multi Family Office - Unbundling

I've seen the future of family offices, and it's not what you think. The industry is undergoing a massive shift, one that's turning the traditional model on its head. It's called unbundling, and it's about to change everything.

Let me take you back to 2017. I was running a multi-family office, juggling the complex needs of ultra-high net worth families. The old way of doing things was starting to show its cracks. Families wanted more transparency, more control, and frankly, better results. That's when I realized something had to give.

The Problem with One-Size-Fits-All

For decades, family offices have operated on a simple premise: provide a one-stop-shop for wealthy families to manage their assets, tax planning, and estate management. It sounds great in theory. In practice? Not so much.

Here's the thing. Every family is unique. Their needs, goals, and challenges are as diverse as their portfolios. Yet, we've been trying to squeeze them all into the same box. It's like trying to fit a square peg into a round hole – it just doesn't work.

I've sat across the table from countless families, watching their frustration grow as they realized their family office wasn't giving them what they truly needed. That's when I knew we needed a new approach.

Enter the Era of Unbundling

Unbundling is exactly what it sounds like. We're taking apart the traditional family office model and letting families pick and choose the services they actually need. It's like going from a set menu to an à la carte experience.

But it's not just about choice. It's about specialization and expertise. In the old model, your family office might be handling everything from investment management to tax planning. Jack of all trades, master of none, right?

With unbundling, you can work with best-in-class providers for each service. Need cutting-edge investment strategies? There's a firm for that. Looking for innovative tax planning? Another specialist has got you covered.

This shift is already happening. I'm seeing more and more families embrace this new model, and the results are impressive. They're getting better performance, more transparency, and ultimately, more control over their wealth.

Technology: The Great Enabler

Now, you might be thinking, "Ethan, this sounds great, but how do we keep track of everything if it's all unbundled?" That's where technology comes in.

When I founded CFO Family in 2021, I knew technology would be the linchpin of this new model. We've developed platforms that can aggregate data from multiple sources, providing families with a comprehensive view of their wealth, regardless of how many different providers they're working with.

This tech isn't just about reporting. It's about insights. It's about giving families the information they need to make informed decisions about their wealth. And let me tell you, when families have this level of clarity, it's a game-changer.

The Independence Factor

There's another crucial aspect of this unbundled model that I can't stress enough: independence. In the traditional family office, there's often a conflict of interest. The same entity managing your investments is also advising you on those investments. See the problem?

In an unbundled model, you can have truly independent advice. At CFO Family, we don't sell investment, legal, or tax advice. Our job is to provide unbiased, transparent reporting. We're the neutral party, giving you the clear picture you need to make decisions.

This independence is revolutionary. It's putting the power back in the hands of the families where it belongs.

The Future is Flexible

As we look to the future, I see the unbundled model becoming the norm, not the exception. Families are becoming more sophisticated, more tech-savvy, and more demanding. They want solutions that fit their unique needs, not cookie-cutter approaches.

But here's the kicker – this isn't just for the ultra-wealthy anymore. The technology and expertise that were once only available to billionaires are now accessible to a much broader range of families. We're democratizing high-end wealth management, and that's exciting.

Challenges on the Horizon

Now, I'm not saying this transition will be easy. Change never is. There will be resistance from traditional players. There will be growing pains as families adapt to this new model. And yes, there will be regulatory hurdles to navigate.

But I've been in this industry long enough to know that when something makes this much sense, it's unstoppable. The benefits of unbundling – better performance, more transparency, true independence – are too significant to ignore.

Your Next Steps

So, what does this mean for you? If you're part of a family office or considering setting one up, it's time to start thinking differently. Here's what I recommend:

1. Assess your current setup. Are you getting the expertise you need in each area?

2. Look for opportunities to unbundle. Where could specialist providers add value?

3. Prioritize independence. Make sure your advisors' interests align with yours.

4. Embrace technology. It's the key to making this new model work.

5. Stay flexible. The wealth management landscape will keep evolving. Be ready to adapt.

The Bottom Line

The unbundling of family offices isn't just a trend. It's a fundamental shift in how we approach wealth management. It's about giving families the tools, the information, and the freedom to manage their wealth on their terms.

As someone who's been on both sides of this equation – running a traditional family office and now pioneering this new model – I can tell you, this is the future. And the future looks bright.

The family office isn't dead. It's evolving. And those who embrace this evolution will be the ones who thrive in the years to come. Are you ready to be part of this revolution?