As the wealth management needs of multigenerational families grow increasingly complex, many family offices are turning to private banking advisory services to augment their in-house capabilities. This specialized support can provide a valuable layer of expertise.
The Family Office Landscape
The roles and responsibilities of modern family offices continue to expand rapidly to encompass activities like:
- Managing liquid and illiquid investments across asset classes
- Tax, estate, and philanthropic planning
- Trust and corporate entity structuring
- Family governance and wealth transfer preparations
- Business oversight and direct investments
According to the Global Family Office Report 2022 by Campden Research:
- 74% of family offices now have allocations to direct investments
- 43% provide concierge services outside of investing
- 40% actively manage operating businesses
Delivering seamless execution requires a diverse set of specialized skills often beyond a single family office’s core competencies.
The Value of Private Banking Partners
This is where partnering with a dedicated private banking group can provide significant value-add through tailored solutions, resources and product offerings. Key benefits include:
Comprehensive Wealth Planning
- Coordinated advisory covering investments, trusts, taxes, and generational planning
- Facilitation of complex situations like business exits or liquidity events
- Access to advanced planning tools and analytics
Elevated Banking Capabilities
- Customized credit facilities, deposit products, and cash management
- Robust capabilities for global payments, foreign exchange, and custody services
- White-glove service delivery experience
Direct Investment Support
- Deal sourcing and capital raising assistance
- Introductions to investment banking and corporate finance advisory
- Enhanced due diligence resources and strategic advisory
Selecting a Private Bank Partner
When evaluating private banking partners, key criteria for family offices should include:
- Understanding of complex family dynamics and multigenerational needs
- Robust open architecture platform with extensive investment capabilities
- Proven track record working with ultra-high net worth clients
- Reputation for exceptional service quality and privacy
- Global reach and capabilities aligned with family footprints
As one family office principal remarked, “Our private bank allows us to focus on strategy and governance knowing world-class execution is in place.”
For family offices navigating the intricacies of substantial wealth, the right private banking partner can provide an invaluable force-multiplier across all their endeavors.