Structures
Asset management clients and ultra-high net worth investors that are interested in forming a family office will be best served by independent advisors and consultants who devote the full amount of time required to meet with them and to gain an understanding of the investor’s assets, investment experience, goals for wealth creation and management, and desires for controlling that wealth within a bespoke family office structure.
The advisors in Euro Credit’s referral network are committed to this level of service. They conduct a thorough review of an investor’s financial position and management of family-owned businesses, particularly if those businesses are a significant component of the investor’s portfolio. When they are satisfied that they have a comprehensive understanding of the client’s circumstances, they form their recommendations for the most effective family office structure that will best serve the client’s goals and needs.
Euro Credit’s financing and liquidity solutions are ideal tools to serve that structure, regardless of which of the three basic family office types the investor has elected dot his or her own purposes:
The Embedded Family Office (EBO)
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EBOs are less formal structures that are established within the corporate form of an individual’s or family’s business. Family office specialists typically recommend EBOs for families that include private assets as part of their family business. The EBO structure enables a trusted employee, such as the family business’s chief financial officer or some other employee who has demonstrated reliability and loyalty in the oversight of the finances of a family business, to manage and curate those private assets. The EBO structure needs to clarify how that employee can simultaneously serve the family business CEO and the interests of the owners of those private assets.
The Single Family Office (SFO).
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SFOs are standalone legal entities that are formed to serve the needs of one and only one family. The independent family office advisors in Euro Credit‘s referral network will frequently recommend an SFO when one generation within a family business is approaching retirement age and is seeking to pass control of the business on to younger family members. The SFO can also serve a family's desire to gain greater asset diversity that extends beyond the family business and to control the family's exposure to breaches of privacy or confidentiality and other legal matters. Ownership and management of the SFO are typically confined among family members. This form of SFO is fully involved and engaged in the management of all of the family's assets, including investments, trusts, and estate plans. Some families incorporate concierge services into SFOs to serve the personal needs of specific family members.
The Multi Family Office (MFO)
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As the name implies, MFOs serve the needs of many high net worth individuals and families at the same time. The families that are under an MFO management structure do not need to be related to each other, although they are frequently characterized by familial relationships. MFOs generally provide the same slate of services that are offered by SFOs. They can be organized as commercial enterprises that sell services on a subscription or a la carte basis to a select group of families or a broader ultra-high net worth investor base. MFOs can establish strong economies of scale for the services that wealthy individuals and families generally require. MFOs are most effective when they serve families that have common characteristics or cultures.
Euro Credit is a direct provider of certain specific services. Euro Credit reserves the right to refer inquiries for some services to third parties that are licensed or registered to provide those services where licensing or registration may be required by the laws of the applicable jurisdictions in which those services are offered. Euro Credit provides its services fully in accordance with applicable laws, rules, and regulations of all jurisdictions in which it conducts business or otherwise engages in transactions with contracting counterparts, either directly to the extent that an obligation, exemption, or exclusion for licensure applies, or otherwise through third-party licensees.
