Family office highlights this week:

• The boom in lifestyle concierge services

• The bizarre story of the world's most expensive bottle of wine

• A model family office structure

• Back to basics on asset allocation

• How family offices are gaining exposure to startups

The Concierge Boom: the Rise and Rise of the Lifestyle Management Industry

From Private Jet Logistics to Dog Weddings: how family offices are leaning on Concierge Services

Most family offices don’t offer many services outside of traditional wealth management.

According to the latest UBS Global Family Office Report, almost half (47%) don’t perform any lifestyle management services at all.

This makes sense: the skillset of traditional family offices tends to be around investing and governance. Lifestyle management is a world away.

Depending on the number of family members and their distribution around the world, outsourcing lifestyle management to an elite concierge service often makes sense.

And the results look good for the concierge services market.

It is already valued at over $850 million and is set to grow considerably alongside the growth of family offices and UHNW individuals. 

Today it’s a closer look at concierge services and lifestyle management.

Why concierge services 

Family offices' primary focus is to preserve and grow the wealth of the family. They handle governance, legal and financial matters that help ensure multi-generational security.

While there is a frequent blurring of roles within those functions, it is often difficult for family offices to manage the nonfinancial demands of wealthy family members (although to be clear, there are often a lot of nonfinancial demands).

Demands such as lifestyle, administrative, security and medical needs, as well as crisis management.

A proliferation of companies have emerged to service these needs, ready to go beyond standard family office capabilities.

Lifestyle management 

Lifestyle management is a wide-ranging and growing industry. Elite concierge services are required to go above and beyond.

These professionals are expected to deliver far more than the typical perks offered by even the most exclusive credit cards.

This is less booking tickets, sending flowers or making dinner reservations, more taking a comprehensive approach to lifestyle management to enhance overall quality of life.

While it can include handling travel issues or solving impossible requests, lifestyle management companies’ stated goal is to intimately understand their clients. To understand their behavior and personal preferences. To help them save time and remove friction. The best lifestyle management companies pay obsessive attention to detail. 

Another objective of lifestyle management is to be defensive - to act as a buffer. They help ensure privacy and sometimes monitor family members' whereabouts. Lifestyle managers can also help protect family members, for example, by preventing overpriced purchases. It’s up to the family member if they want to buy a Lambo, but the lifestyle manager can utilize their network to make sure the client is getting the best offer.

Concierge memberships

Types of services and plans vary, but are generally built around a core offering focused on travel and event arrangements, plus access to privileged events.

A dedicated contact person is available 24/7 directly or through a digital app. They are on hand to answer any questions, solve urgent requests or start planning an activity.

Membership fees are mostly charged annually, and while there are group or family plans, expect to pay around $50,000 for a top-tier individual offering.

Notable boutique providers include Knightsbridge Circle, Nota Bene, Sienna Charles, VZ Bespoke and Maison Benjamin. And of course the Quintessentially Group, which has now well over 250,000 members.

Digital-first solutions have also entered the concierge space, with mobile apps like Myria providing a community-focused offering.

Core services

From tracking down collectible artworks to securing education opportunities and making complete arrangements for a destination wedding, here’s a few of the core services lifestyle concierges offer to enhance members’ lives.

Travel 

Beyond travel design and booking accommodation, concierges will enable things like private access to popular attractions outside regular hours or find accommodation in famous unlisted villas. They’ll also manage any private jet logistics. One lifestyle company helped their client drive a vintage sportscar driven by a retired Formula One driver.

Entertainment & Events 

Concierge services will plan your next family birthday or milestone event at the most outrageous venue with a celebrity popstar performance, get you tickets to the Super Bowl at the last minute, Taylor Swift concert or fashion gala.

They’ll also get you a private table in the kitchen at a Michelin starred restaurant at the last minute. And if your youngest wants a personal meet with their favorite musician or sports star, it’s only a phone call away.  

Retail 

Concierges will source and purchase everything from obscure groceries (sometimes flown in from across the world) to fashion and furniture - even vehicles.

They’ll also arrange private shopping experiences at designer boutiques, source off market luxury items like limited edition watches or artworks, and arrange private tastings at wineries or distilleries. 

Education 

Why worry about your kids getting into the best school or Ivy League university when your concierge can sort that for you, along with scheduling private classes with the best tutors.

Real estate 

Beyond the sourcing and ongoing maintenance of properties, concierge services can manage the full time hiring and management of household staff for multiple homes and yachts.

Art

Art curation and acquisition, along with storage, assessments for auctions and more. Plus access to that exclusive gathering during Art Basel Miami, or a one-on-one meeting with the artist at their studio. 

Bizarre requests  

When you pair services that aim to deliver any request with individuals used to anything they desire, of course there will be a few situations that verge on the bizarre. 

Lifestyle management companies have reorted organizing a huge flash mob to surprise an arriving family member, arranging exotic African wildlife to appear at a party, recreating a movie scene in public place complete with extras, planning a lavish dog wedding and covering an entire beach with rugs to hide the sand. 

Thankfully for anyone making use of or considering concierge services, privacy is central to their offering!

Blurred lines

Wealth management companies and private banks frequently host exclusive gatherings and excursions as a way to connect with existing and potential clients. 

As wealth management becomes more competitive, those involved realize that to set themselves apart they need to provide a truly holistic offering. In other words, they need to go beyond simply managing assets.

Many already incorporate concierge-like services as part of their offering, with more set to do the same or partner with existing companies that provide such services.

The concierge services that will flourish in this competitive market will be the ones who can deliver that one thing UHNWIs want most:

Whatever it is they can’t have. 

𝕏 highlights

The functions of a family office (v2.0 coming next week).

Where family offices plan to increase their exposure.

High-quality deal sourcing remains a problem for family offices (watch out for November’s Dealflow newsletter, coming soon).

 💼 where to work

Our monthly Careers newsletter is next week: get in touch if you’re looking for a family office role.

For today, here are three new family office opportunities:

Chief Financial Officer - Private Family Office (United Kingdom / Single Family Office)

Executive Family Office Administrator - KMI Family Ventures (Michigan / Single Family Office)

Senior Family Office Relationship Manager - Brown Brothers Harriman (New York / Service Provider)

📚 what to read

The Billionaire’s Vinegar by Benjamin Wallace tells the bizarre story of the world's most expensive bottle of wine and the chase to acquire it. The bottle was supposedly owned by Thomas Jefferson. But it has been described as “the most elaborate con since the Hitler diaries”.

📻 what to listen to

Ruminating on asset allocation. The Memo by Howard Marks. “Many people think the proper goal of investing is achieving the highest return. More sophisticated thinkers understand either intellectually or intuitively the goal should be to achieve the best relationship between return and risk.”

📺 what to watch

How family offices can gain exposure to startups.

And finally…

Here’s what’s coming up:

💆 Wellness - how the wealthy look after themselves

🏘️ Real Estate - a family office favorite

👥 Multi-Family Offices - a cost-effective alternative

💼 Careers - sharing top roles, top candidates, top tips

🤝 Deals - sharing select deals for family office investors

There are still some sponsorship opportunities available (for the right partners).

That’s all for this week!

Family Office Buzz will be in your inbox Monday (here’s the last edition if you missed it).

Until then, see you on 𝕏 or LinkedIn

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