What Is a Single Family Office?

Catherine Shiang serves as managing director of Asia Capital, a family owned investment company with offices in Asia, Europe and US. Among her responsibilities at Asia Capital, Catherine Shiang oversees the firm’s portfolio construction. An expert on the subject, she has commented and published in social media on family office investment trends, practices, and participated in family office series including Bloomberg Family Office Series.

A family office is a form of private investment vehicle that wealthy families have used to manage their wealth with. The concept has been around since the formation of private capital; but its current practice was shaped by American industrialists of the 19th Century. 

There are two types of family offices: single family and multi family. In general, a single family office is a type of organizational structure designed to manage the affairs of a single wealthy family. Some single family office is a third party service provider that exclusively provides service for one family. Others, are formed by the principals themselves. 

There are many benefits to investing through a family office vehicle but the cost overhead must be weighed against the wealth being managed. Cost can be shared through a multi family where several families join and spread the overhead costs.