Family Office Glossary
Family Office Glossary
Essential terms and definitions for understanding the family office industry and wealth management concepts.
Beneficiary
An individual entitled to receive distributions from a trust or estate plan....
Learn More →Assets Under Management (AUM)
The total value of assets a family office manages on behalf of the family....
Learn More →Basis Points (bps)
A unit of measure equal to 0.01%, often used in fee calculations....
Learn More →Outsourced CIO (OCIO)
A third-party investment manager hired to manage all or part of the family's portfolio....
Learn More →Concierge Services
Lifestyle support including travel, security, and household management....
Learn More →Back Office
Support functions including accounting, reporting, and technology infrastructure....
Learn More →Single-Family Office (SFO)
A family office dedicated to serving one ultra-wealthy family....
Learn More →Multi-Family Office (MFO)
A firm serving multiple families with shared resources and services....
Learn More →Registered Investment Advisor (RIA)
A fiduciary entity registered to manage investments for clients or families....
Learn More →Assets Under Management (AUM)
Assets Under Management (AUM) represents the total market value of investments that a family office manages on behalf of clients. **Components of AUM:** - Liquid investments (stocks, bonds, mutual fu...
Learn More →UHNW (Ultra-High-Net-Worth)
Ultra-High-Net-Worth individuals are those with investable assets exceeding $30 million, according to most industry definitions. **Key Characteristics:** - Investable assets: $30 million+ (excluding ...
Learn More →Trust
A legal structure that holds assets on behalf of beneficiaries, often used for tax and estate planning....
Learn More →Succession Planning
The process of preparing the next generation to manage wealth and leadership roles....
Learn More →Family Office Executive
A C-level leader such as CEO or CIO responsible for strategic and operational management....
Learn More →Breakeven Analysis
A comparison showing the point at which one cost model becomes more efficient than another....
Learn More →Fee Structure
The pricing model used by family offices, such as fixed, retainer, or AUM-based....
Learn More →Performance Fee
A fee based on investment returns, often used in hedge fund-style strategies....
Learn More →Co-Investment
An arrangement allowing the family to invest directly alongside other parties, often at lower fees....
Learn More →Foundation
A nonprofit structure used by families for philanthropic giving and legacy building....
Learn More →Governance Framework
The decision-making structure used within the family office or enterprise....
Learn More →Philanthropic Advisory
Guidance on charitable giving, impact investments, and donor-advised funds....
Learn More →Next-Gen Education
Programs that prepare younger family members for wealth stewardship....
Learn More →Family Office Director
A general manager overseeing daily functions and aligning stakeholders....
Learn More →Family Governance
Family Governance encompasses the structures, processes, and policies that guide decision-making and relationships within wealthy families across generations. **Core Components:** **Family Constitut...
Learn More →Single Family Office (SFO)
A Single Family Office (SFO) is a private wealth management organization that serves exclusively one ultra-high-net-worth family. **Key Characteristics:** - Dedicated exclusively to one family - Typi...
Learn More →Alternative Investments
Alternative investments are non-traditional investment assets that typically provide diversification beyond public stocks and bonds. **Common Types:** **Private Equity:** - Buyout funds and growth c...
Learn More →Family Office
A private organization managing the financial, legal, and personal affairs of a wealthy family....
Learn More →Virtual Family Office (VFO)
A decentralized model relying on digital tools and outsourcing....
Learn More →Fractional Family Office
A part-time or shared service model for families below the SFO threshold....
Learn More →Multi-Family Office (MFO)
A Multi-Family Office (MFO) is a wealth management organization that serves multiple ultra-high-net-worth families, sharing resources and expertise. **Key Characteristics:** - Serves multiple wealthy...
Learn More →Related Resources
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Popular FAQ
- What is a Multi-Family Office?
- Family Office vs Wealth Management
- Family Office Costs
- Minimum Net Worth Requirements
- Family Office Services Explained
- What is a Fractional Family Office?
- How to Find Family Office Investors
- Family Office Professional
- What's a Family Office?
- Family Office vs Hedge Fund