Outsourced Family Office / OCIO

An Outsourced Family Office (OCIO) model leverages external providers to deliver comprehensive family office services, often coordinated through an Outsourced Chief Investment Officer arrangement.

Key Characteristics

External Provider Network

- Professional investment management through OCIO providers

- Outsourced administrative and operational functions

- Third-party governance and compliance support

- Coordinated service delivery through lead provider

OCIO-Led Coordination

- Outsourced Chief Investment Officer as primary coordinator

- Professional investment management and oversight

- Integrated reporting across all service providers

- Strategic advisory and family office consulting

Hybrid Service Model

- Combination of outsourced and internal functions

- Flexible service arrangements based on family needs

- Professional expertise without internal infrastructure

- Scalable service delivery model

Service Framework

Investment Management (OCIO)

- Professional portfolio management and oversight

- Investment committee governance and decision-making

- Access to institutional investment opportunities

- Risk management and performance monitoring

- Tax-efficient investment strategies

Administrative Services

- Consolidated reporting across all accounts and providers

- Cash management and liquidity coordination

- Family office operations and workflow management

- Technology platform management and integration

Advisory Functions

- Estate and tax planning coordination

- Family governance and next-generation education

- Philanthropic advisory and implementation

- Strategic planning and wealth structuring

Provider Types

Institutional OCIO Firms

- Large institutional investment management firms

- Comprehensive investment and advisory services

- Professional governance and oversight frameworks

- Institutional-grade reporting and analytics

Multi-Family Office Platforms

- Established MFOs offering OCIO services

- Comprehensive family office service delivery

- Proven operational frameworks and systems

- Access to broader family office expertise

Independent OCIO Providers

- Specialized outsourced investment management firms

- Focus on investment excellence and performance

- Flexible service arrangements and fee structures

- Customized investment approaches

Ideal For

Asset Threshold: Typically $25M-$250M in investable assets

Family Profile: Families seeking professional management without internal infrastructure

Service Needs: Comprehensive investment management with coordinated family office services

Complexity Level: Moderate to high complexity requiring professional oversight

Cost Structure

OCIO Management Fees: 0.50-1.25% of assets under management

Administrative Fees: $100K-$500K+ annually for coordination services

Project-Based Fees: Additional charges for specialized advisory services

Platform Fees: Technology and reporting system charges

Advantages

- Professional Management: Access to institutional-quality investment management

- Operational Efficiency: Proven systems and processes

- Cost Effectiveness: Professional services without internal infrastructure costs

- Scalability: Services can grow with family wealth and complexity

- Expertise Access: Broad range of specialized professionals

Considerations

- Service Integration: Coordination across multiple providers required

- Customization: May have less customization than internal family office

- Provider Dependence: Reliant on external provider capabilities and continuity

- Relationship Management: Multiple provider relationships to manage

- Control: Less direct control over day-to-day operations

Selection Criteria

Provider Evaluation

- Investment performance and philosophy alignment

- Service breadth and integration capabilities

- Technology platform and reporting quality

- Fee structure transparency and competitiveness

- Cultural fit and communication style

Due Diligence Process

- Investment team and process evaluation

- Operational capabilities assessment

- Reference checks with existing clients

- Fee and service agreement negotiation

- Transition planning and implementation