Are you considering a career move to a family office? You may be wondering what sets these, often mysterious, organizations apart.
Is it better pay? More interesting work and greater contribution? Perhaps, the perceived prestige? Or association with successful business leaders? The answer may well be all of the above, though better remuneration is often not the main reason.
First understanding the major differences of a family office to traditional investment career routes is key. A family office is usually a private company that manages financial aspects of one or more families. Please see our other posts for more information.
Do you feel that working with ultra high-net-worth (“UHNW”) families fits your skillset and ambition? Here are five reasons why you should consider your next career move to a family office:
Its personal
With close day to day involvement of the family members, family offices typically have a very close-knit and often intimate working environment. This creates strong professional and personal relationships. It allows the family office team to have a better understanding of the family’s values and objectives, and the opportunity to make a meaningful impact on the family’s financial position.
More interesting work
It is true that a family office does not provide the career ‘ladder’ that you’d find in a big asset manager or bank. But what it lacks in heirarchy it makes up in the broad scope of responsibilities. You will likely have the opportunity to work on a wide range of tasks and projects. From investment management, financial planning and private investments through to philanthropy and education. This can both be alot of fun and help you gain broad experience, develop new skills and deepen your understanding of various disciplines.
Personal development
Related to the point above, a family office can be the perfect place and opportunity for personal and professional growth. In a smaller, more dynamic organization there are often more opportunities for developing one’s skills and acquiring new ones.
Work-life balance
For many professionals, a good work-life balance has become increasingly important. In a family office, the pace often matches the longer term investment outlook: slower, more considered, strategic and patient approach to investing. It is not a transactional environment; family offices are after all on the buy-side rather than the sell-side as is the case in banking. This can provide a better balance between your professional and personal life, with normal working hours and annual leave. This can lead to increased job satisfaction and overall well-being. For these reasons family offices are often preferred by mid to late career workers, rather than work hungry and ambitious young professionals eager to race to the top.
Unique and niche investments
One major difference, today, is the exposure to unique investment opportunities. This may change in the future as more and more traditional managers seek to compete or offer private solutions for their clients. But today, private markets still remain the main playground of family offices and UHNWs. Family Offices often have access to exclusive investment opportunities, such as private equity and venture capital or real estate projects, that may not be available to the wider investment community. These asset classes are exciting, intellectually challenging and can provide you with valuable experience and in alternative investments.
If you are considering a move to a family office, these are just a few of the benefits to consider. While a family office may not be the right fit for everyone, it can be a great option for those who value personalized financial planning, the opportunity for growth and development, a good work-life balance, confidentiality and privacy, and a sense of community. So, weigh the pros and cons and make an informed decision that’s best for your career and personal goals.