Steve Prostano and Jamie McLaughlin in Family Wealth Report: Is the MFO Market Worth the Effort?
The multi-family office market is asset-rich and fast-growing. However, the world of MFOs is not always the easiest to comprehend, leaving many advisory firms that are contemplating joining the market to wonder if the effort is worth the gain. To help advisors learn more about this multi-faceted and mysterious market, Family Wealth Report turned to Steve Prostano, partner at PKF O’Connor Davies Family Office and chair of The UHNW Institute, and Jamie McLaughlin, CEO of J.H. McLaughlin & Co. and board member of The UHNW Institute, for insight.
According to McLaughlin, successful RIAs should look hard before leaping into the MFO market. “The cost of entry are prohibitive and pricing is already hard,” he warns. “Why dilute your core business? The challenges of serving UHNW clients far outweigh the perceived opportunity.”
However, for those firms that are willing to take the plunge and enter the MFO market, it is essential to construct an ideal family profile. “In order for a multi-family office to grow, evolve and reach their full potential, defining an ideal family profile is a critical first step,” explains Prostano. “It starts with a deep understanding of the family’s needs and development of a unique offering, delivery model and client experience that exceeds their expectations.”