BEST PRACTICES: DISTINGUISHING BETWEEN A TRUE FAMILY OFFICE SERVICE PROVIDER AND A MASS AFFLUENT/HNW/UHNW OPTION

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Rockit® Options is a technology-enabled World Household Workplace (GFO) resolution supplier targeted on single and multi-family places of work with distinctive wants. Given our DNA originated out of servicing the complicated wants of the Rockefeller household workplace, we’re one of the crucial skilled suppliers bringing collectively the varied service and reporting wants of a household workplace.

We’re ceaselessly launched to household workplace prospects on the lookout for some “easy” mixture of reporting, aggregation, and evaluation. Typically occasions, they point out that that they had already discounted different distributors as a consequence of a lacking core performance.  Household places of work are, by nature, bespoke working entities, and something however “easy”.  This begs the query – shouldn’t suppliers share the identical flexibility and a spotlight to element as their household workplace purchasers? 

At current, there are dozens of distributors providing providers within the higher “reporting” house and plenty of do glorious work.  Though reporting, aggregation, and evaluation are positively parts of a real household workplace service providing, we like to inform our prospects that we’re, in truth, within the enterprise of perception, oversight, and management.  Whereas the distinction would possibly look like a matter of semantics, by asking a collection of questions, we are able to higher perceive the excellence between “easy” reporting, aggregation and evaluation finest fitted to the mass prosperous/HNW/UHNW investor and the inherently extra complete perception, oversight, and management.

  1. Evaluation vs Perception – Evaluation may be considered as information factors inside a vacuum.  Perception supplies extra granular data and supplies context for decision-making.
 

ANALYSIS

INSIGHT

Supposed consumer?

Mass Prosperous/HNW/UHNW

Household Workplace

Are funding selections being made each day utilizing the information offered?

Unlikely

Sure

Do you require superior analytics like IRR or MOIC for illiquid investments/specialty property or metrics like volatility and Commonplace Deviation?

No

Sure

Can you combine the providing with different platforms inside your tech stack to assist with decision-making?

No

Sure

 

  1. Aggregation vs Oversight – Primary aggregation can present a consolidated abstract of transactions, accounts, and holdings. Multi-bank, Multi-shore purchasers with substantial wealth require full transparency into their holdings at each a micro and macro degree.
 

Aggregation

Oversight

Supposed consumer?

Mass Prosperous/HNW/UHNW

Household Workplace

Do you’re employed with a number of banks/custodians (each US and non-US)? 

No

Sure

Are any of your accounts denominated/do they settle in international foreign money?

Unlikely

Sure

Are there quality control involving human intervention in place to make sure information high quality?

No

Sure

 

  1. Reporting vs Management – Reporting can present purchasers with a restricted, primary output.  Full management over a service providing permits for house owners and their household workplace employees to view wealth precisely the way in which they want to see it.
 

Reporting

Management

Supposed consumer?

Mass Prosperous/HNW/UHNW

Household Workplace

Do you require the flexibility to trace illiquid holding (actual property, PE, HF) past a line merchandise with market worth?

No

Sure

Do you’ve gotten management over how the connection may be considered (i.e. consolidate by useful proprietor, asset class, or at safety degree)

No

Sure

Are you able to symbolize partnerships with a glance by on to the companions?

No

Sure

 

True household places of work, as bespoke working entities, require built-out and totally customizable choices.  By being clear concerning the degree of complexity they require and asking easy screening questions, household workplace employees and wealth house owners can save a substantial amount of effort and time in vetting potential distributors.  Rockit Options was created inside one of many first trendy household places of work 20+ years in the past to resolve for these challenges.  To this present day, we stay targeted solely on perception, oversight, and management for household places of work.

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