Family office

The firm DuPont, after founder Irenee died in 1834, was conceived as a form of family office, where three of his sons split management duties of their late father's gunpowder mill. The Rockefeller family first pioneered family offices in the late 19th century. Family offices started gaining popularity in the 1980s, and since 2005, as the ranks of the super-rich grew to record proportions, family offices swelled proportionately. In 2007, the case of the Ayer family office highlighted family office risk when a "family confidant allegedly siphoned about $58 million away in a few years." after hearing from around 100 family offices through their attorneys, who invoked solicitor–client privilege in the communications with the SEC. In the words of one solicitor: "The extended family that controls the family office has asked this firm to provide the Commission with comments to the Proposed Rule on its behalf, as it believes that providing comments directly to the Commission might compromise its privacy, including publicly revealing the manner by which it conducts its family office business." Family offices became more common in years since 2010 after the rapid increase in valuations of technology companies led to many people having newly created wealth. According to a 2015 report by the Financial Times, the label "family office" was increasingly replaced by other business names, such as "private investment office", with services in relation therewith called "private company services" or "strategic philanthropy advice". Globally in 2015, one source numbered 79,000 families that controlled roughly $19 trillion in assets. In spring 2021 the implosion of Archegos Capital Management drew the scrutiny of several regulators and the questioning of Sherrod Brown, Chair of the US Senate Banking Committee. It came to light that family offices were reportedly "more loosely regulated than other investment vehicles, with fewer disclosure requirements." This view, however, is not shared by a number of regulators and commentators, including Commissioner Hester Peirce of the Securities and Exchange Commission (SEC) and Commissioner Brian Quintenz of the Commodity Futures Trading Commission (CFTC), who published an op-ed arguing that family offices do not need new regulations. ==Traditional and modern usage==

A traditional single family office is a business run by and for a single family. Its sole function is to centralize the management of a significant family fortune. Typically, these organizations employ staff to manage investments, taxes, philanthropic activities, trusts, and legal matters. The family office invests the family's money, manages all of the family's assets, and disburses payments to family members as required. According to ''Spear's Wealth Management Survey'' in 2022, "Family offices are private companies that support a number of functions for wealthy families including the smooth running of day-to-day affairs as well as more complex matters involving wealth management and strategy. These issues are particularly important for families with assets and interests in multiple jurisdictions." In June 2008, Wharton Magazine reported that "About 1,000 SFOs are in operation around the world catering to families with a least $100 million in assets. More than half the SFOs are managing family wealth of more than $1 billion." Services handled by the traditional SFO include investment management, property management, day-to-day accounting and payroll activities, and management of legal affairs, and they often provide family management services, which includes family governance, financial and investment education, philanthropy coordination, and succession planning. An academic investigation defined SFOs as "professional organizations dedicated to managing family wealth and family matters, represent the leading edge of a broad trend in substantial personal wealth accumulation. The worldwide concentration of wealth in the hands of relatively few is well documented. As the rich grow even richer, and particularly as fortunes filter down through generations, wealth management becomes ever more complex. It is in this context that SFOs—dedicated to the service of one multi-millionaire or billionaire family—have evolved." ==Select list of family offices==

• Archegos Capital Management • Ballmer Group • Bayshore Global Management • Bessemer Trust • Bezos Expeditions • Cascade Investment • Cresset • DFO Management • Dubai Holding • Edipresse • Emerson Collective • ICONIQ Capital • Kirkbi • Mayfair Vermögensverwaltung • Mousse Partners • Robert Wood Johnson Foundation • Soros Fund Management • Spell Capital Partners • Thiel Capital • Vulcan Inc. • Whittier Trust Company • Willett Advisors • Winklevoss Capital Management ==See also==