Fractional Family Office

A Fractional Family Office model allows families to access specific family office functions or expertise on a part-time or subscription basis, providing targeted services without full infrastructure investment.

Key Characteristics

Subscription-Based Services

- Access to specific family office functions as needed

- Part-time allocation of senior professionals

- Shared expertise across multiple families

- Flexible engagement models and terms

CFO-as-a-Service Model

- Part-time Chief Financial Officer for family entities

- Financial planning and cash flow management

- Coordination with external accountants and tax advisors

- Family governance and reporting oversight

Modular Service Approach

- Choose specific services based on family needs

- Scale services up or down based on requirements

- Add services as family complexity grows

- Maintain cost control through selective engagement

Service Modules

Financial Management

- Part-time CFO services and financial oversight

- Cash flow planning and liquidity management

- Investment coordination and performance monitoring

- Financial reporting and family meetings

Investment Oversight

- Investment committee participation

- Portfolio review and risk assessment

- Alternative investment evaluation

- Performance benchmarking and analysis

Administrative Support

- Family office operations setup

- Technology platform implementation

- Vendor management and coordination

- Compliance and governance framework development

Strategic Planning

- Family governance structure development

- Next-generation education planning

- Succession planning coordination

- Philanthropic strategy development

Ideal For

Asset Threshold: $10M-$50M in family wealth

Family Stage: Transitioning from traditional wealth management

Service Needs: Specific expertise in targeted areas

Growth Phase: Families evaluating formal family office structures

Engagement Models

Retainer-Based: Monthly or quarterly retainer for ongoing services

Project-Based: Specific projects with defined scope and timeline

Hybrid Model: Combination of retainer and project-based work

Success-Based: Performance-linked compensation for investment oversight

Cost Structure

- Monthly Retainers: $5K-$25K+ per month for ongoing services

- Daily Rates: $1K-$5K+ per day for senior professionals

- Project Fees: Fixed fees for specific initiatives

- Success Fees: Performance-based compensation for investment services

Advantages

- Cost Control: Pay only for services actually used

- Expertise Access: Access to senior-level professionals part-time

- Flexibility: Adjust services based on changing needs

- Transition Support: Bridge to formal family office structure

- Risk Mitigation: Test family office functions before full commitment

Considerations

- Limited Availability: Professionals may not always be available

- Continuity: Potential for service interruptions

- Integration: May require coordination with existing advisors

- Scalability: May need to transition as complexity grows

- Relationship Depth: Less intimate relationship than dedicated staff

Transition Strategy

Fractional family offices often serve as stepping stones, allowing families to:

- Test family office concepts and benefits

- Develop internal capabilities and processes

- Evaluate service providers and approaches

- Build towards a more comprehensive structure over time