A Guide to Family Offices in New York City: Services, Focus, and Fees
A Guide to Family Offices in New York City: Services, Focus, and Fees
In New York City, there is wealth, and then there is legacy. For the ultra-affluent, traditional private wealth management is just the starting point. When your assets, ambitions, and family dynamics become truly complex, you don’t just need an advisor; you need a Chief Operating Officer for your family’s entire life. Welcome to the world of Family Offices.
As your expert guide for AZ New York, I’m taking you inside this exclusive world. This isn’t about picking stocks; it’s about professionalizing your legacy, managing your assets, and protecting your family from both external risks and internal conflicts. This is the definitive guide to family offices in NYC—what they do, who they serve, and what they cost.
NYC’s Elite Multi-Family Offices (MFOs)
While many of New York’s wealthiest have their own Single-Family Office (SFO)—a private company they own and staff themselves—a more common and efficient model is the Multi-Family Office (MFO). These firms serve a select group of UHNW families, providing the power and resources of a full-scale SFO with shared costs. Here are some of the most prominent MFOs in New York City:
- Bessemer Trust: Often considered the gold standard, originally founded as a single-family office for the Phipps family (partners of Andrew Carnegie).
- Rockefeller Capital Management: The modern evolution of the iconic Rockefeller family office, now expanded to serve other UHNW families.
- BBR Partners: A boutique MFO known for its high-touch service and unconflicted, “open-architecture” investment platform.
- Cresset Asset Management: A rapidly growing, founder-focused firm that combines a high-end MFO with a premier independent advisory (RIA).
- Tiedemann Advisors: A leader in impact and sustainable investing, this MFO has a global footprint and serves families with complex international needs.
- Silvercrest Asset Management Group: A leading firm known for its deep in-house investment management capabilities alongside its family office services.
- Summit Rock Advisors: An outsourced-CIO (OCIO) and advisory firm that acts as the dedicated investment engine for a select group of UHNW families and foundations.
- Cerity Partners: A large, integrated firm that provides comprehensive MFO services, from tax and estate planning to investment management.
How to Choose: The Core Conflict (SFO vs. MFO)
The first and most significant conflict you’ll face is whether to build your own Single-Family Office (SFO) or join an established Multi-Family Office (MFO). Here is the pedagogical breakdown to resolve that choice.
| Feature | Single-Family Office (SFO) | Multi-Family Office (MFO) |
|---|---|---|
| Best For | Families with $500M – $1B+ in assets who require absolute, customized control and complete privacy. | Families with $25M – $500M who want the full suite of SFO services without the cost and headache of operations. |
| Control & Customization | Total. You hire every employee, from the CEO to the analyst. You set the entire investment philosophy. | High, but shared. You gain access to a world-class team, but they serve multiple families. The platform is set, though often customized. |
| Core Focus & Fees | It’s a “cost center.” You pay all salaries, rent, and operating expenses. Annual costs can run $2M – $10M+. | It’s a “service.” You pay a fee, typically a % of Assets Under Management (AUM) or a flat annual retainer. This is far more cost-effective. |
| Services | Whatever you want. From bill pay and managing art collections to staffing private aircraft and handling family governance. | A comprehensive, established menu of services, including investment management, tax planning, bill pay, and concierge services. |
| Talent & Privacy | You must recruit, vet, and retain top-tier talent. Privacy is absolute, as employees work only for you. | Instant access to a deep bench of proven professionals. You leverage shared talent. Privacy is high, but you are one of several families. |
The Expert’s View: Wealth Preservation vs. Wealth Creation
A critical lesson from Wall Street: A family office has a different primary goal than a hedge fund. A hedge fund’s job is Wealth Creation (aggressive, high-risk returns). A family office’s primary job is Wealth Preservation.
This means their first focus is on risk management, tax efficiency, and smart estate planning to ensure the family’s wealth outlives inflation, taxes, market crashes, and internal family disputes. They are stewards of capital, not speculators. They measure success not in quarterly gains, but in generational security.
Real-World NYC Scenarios: 3 Case Studies
To help you visualize the right choice, here are three common UHNW archetypes.
1. The “New Money” Entrepreneur
Profile: A 45-year-old founder who just sold his SaaS company. He now has $200M in cash. His life is suddenly complex: he needs to pay massive taxes, diversify, set up trusts for his children, and create a foundation. He’s never had to manage this level of wealth.
Best Fit: Join a Multi-Family Office (MFO). Why? He needs an instant, professional team. An MFO like Cresset or BBR Partners can immediately act as his “family CFO,” coordinating with tax lawyers, building a diversified portfolio, and handling the administrative burden so he can focus on his next venture.
2. The “Old Money” Matriarch
Profile: The 70-year-old matriarch of a family with $750M in assets (real estate, art, and a large stock portfolio). They have a small, loyal SFO staff, but the investment strategy is dated, and the technology is nonexistent. They struggle with cybersecurity and complex reporting for 30+ family members.
Best Fit: Outsource to a high-end MFO/OCIO. Why? She doesn’t want to fire her loyal staff, but she needs professional-grade operations. A firm like Summit Rock or Bessemer Trust can act as the “Outsourced Chief Investment Officer” (OCIO) and “back office,” plugging their institutional-grade technology and investment platform into the existing SFO.
3. The “Billionaire” Investor
Profile: A family with $3B+ in assets, run by a patriarch who is still an active investor. The family wants to make large, direct investments in private equity and real estate, not just invest in funds. Their needs are highly specific, and privacy is paramount.
Best Fit: Build a dedicated Single-Family Office (SFO). Why? At this scale and with this level of specificity, their needs are unique. They need to hire their own Chief Investment Officer and a team of specialists who work only for them, executing their direct investment strategy. The cost is high, but it’s justified by the level of control.
Frequently Asked Questions (FAQ)
Q: What is the real minimum to use a family office?
A: For a Multi-Family Office (MFO), the minimum investable assets are typically between $25M and $50M. To build your own Single-Family Office (SFO), it’s generally not considered cost-effective unless you have $500M or more.
Q: What “Family Focus” services do they *really* provide?
A: This is the key difference. Beyond investments, MFOs handle the “business of the family.” This includes:
- Administrative Services: Bill pay, cash flow management, payroll for household staff.
- Lifestyle Management: Managing private jets, yachts, art collections, and real estate properties.
- Family Governance: Helping create a family constitution, educating the next generation (“Next-Gen”), and mediating family meetings.
- Risk Management: Handling cybersecurity, personal security for the family, and complex insurance (e.g., kidnap & ransom).
Q: How do Family Office fees *really* work?
A: There are two main models.
- AUM Fee (MFOs): A percentage of the assets they manage (e.g., 0.25% – 0.75%), which is tiered and drops as assets increase.
- Flat Retainer (MFOs/SFOs): A large annual flat fee (e.g., $100k – $500k+) for all services, common when assets are complex or illiquid (like real estate).
- Cost Center (SFOs): You pay 100% of the operational costs—salaries, rent, technology, etc.
Q: What is the “Focus” of different family offices?
A: Many firms have a specialty. Some, like Rockefeller, have a deep history with generational wealth. Others, like Cresset, are “by founders, for founders,” focusing on the needs of entrepreneurs. Others, like Tiedemann, are leaders in impact investing, helping families align their money with their values.
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