RAA Capital is a private investment firm & family office.
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A Snapshot of the Family Office
Often, managing a large estate is far too difficult for one or even a few persons to accomplish. This is why the family office has come into existence. The family office assists in estate planning and management, including in financial and personal affairs. A family office may offer services such as family governance, bookkeeping, succession planning, charity involvement, wealth management, and legal advice. Depending on the services offered, the family office can provide lawyers and or other specialized personnel to the family.
Family Office Objectives
The family office is objective and works in accordance with the needs and interests of the client family. The family office can consist of a team of people or just one or a few professionals. The family office should work with the family to create strategies for meeting the stated objectives for whichever service rendered. The family office may also offer periodic reports to chart progress and success. For example, a family office offering wealth management for a family may have to meet goals of income growth as well as preservation by investing in an array of asset classes, from stocks to bonds to fixed income. A family should be able to evaluate and terminate the services of the family office, if the services do not meet the family’s standards.
When considering hiring a family office, there are several different classes of family offices to meet a family’s specific needs. One is an in-house family office, which usually comprises of a family administrator with a small support staff to handle basic duties, such as the running of the estate as well as accounting. Another class of the family office is a private company that works under authorization from their client families and/or the families’ trustees. These companies have worked with other clients and often have proven track records of success. Families can also hire banks, financial firms, legal firms, and accounting firms to act as the family office in specific wealth management and legal mandates. A family office can also be categorized as a single family office or a multiple family office. The single family office manages the affairs of only one family. The multi-family office manages the accounts of several families. Sometimes, the owners or professionals running the family offices manage their own wealthy estates. Client families then benefit from their experiences in successfully handling their own professional affairs. Their knowledge of and familiarity with managing estates can aid their clients in issues that might arise, because they might have personally dealt with a similar issue previously.
Before choosing the family office to hire, it is important for each family to know what services they need performed. If the family’s needs are quite basic and few, an in-house family office may suffice. If a family needs to invest their wealth, a financial professional’s services may be needed. Depending on the services needed, a family may want to look for specific types of family offices. Additionally, before selecting a family office, conducting proper due diligence is important. Families should thoroughly research the company or professionals that will render the services and manage the estate, paying close attention to their costs, track record, and trustworthiness. Families should take into account the needs of the estate. With a basic understanding of the family office and thorough research, the estate may be put in the right hands.
Recent Investments
A leading mobility solutions company.
Black Gaming, a local market-focused gaming and hospitality company.
American Midstream Partners
