Understand the cost structure of running a family office in Asia and how to optimize value.
Family offices typically cost between 0.25%–1.0% of total AUM annually. Major expenses include:
- Salaries for internal staff (CIO, COO, legal, admin)
- External advisors (tax, legal, compliance)
- IT and cybersecurity infrastructure
- Office space and admin costs
Newer models allow lean setups by outsourcing non-core functions or using virtual family office (VFO) providers.
Benchmarking against peers helps determine whether your office is overpaying or underinvesting.
FAQs:
Q: Can a family office be run with less than $5M AUM?
A: It’s difficult. Most cost-efficient models start at $10–20M with external support.
Q: How to avoid overpaying vendors?
A: Review service contracts annually and negotiate based on bundled services.
User Comments:
- “We saved 30% by moving to a hybrid outsourced model.”
- “Annual cost reviews exposed duplicate legal retainer fees.”
Editor's Note:
A well-run family office balances cost with control. Efficiency matters as much as customization.
Tags: family office costs, Asia wealth, AUM budget, virtual family office, operational efficiency
(Editors: admin)