Perhaps the simplest definition of a family office is an organization that assumes the day-to-day administration and management of a single family’s financial affairs. These organizations operate similarly to standard wealth management firms with centralized management or oversight of investments, tax planning, estate planning, and philanthropic planning. In short, family office offers many of the same services as top-tier private banks and wealth managers, but devote its time, effort, and resources to the financial affairs of a single family.
Central to all activities undertaken by family office is the protection and growth of the sponsoring family’s financial assets. The appeal of co-investing or forming an investing partnership is substantial and multifaceted. First, the fees associated with co-investing are materially, and often substantially, lower. Even from a non-pecuniary perspective, however, investing with Forest Hills Capital has its benefits, as working collectively allows families to better understand the business or businesses in which they are invested. Collaborating with like-minded and friendly investors also leads to knowledge gains and allows both parties to lever up on each other’s strengths. These benefits of cooperation directly translate to stronger rates of return on assets and invested capital.