The Rockefellers are perhaps the most well-known ultra-wealthy American family who created one of the first – if not the first – Family Office in the United States. John D. Rockefeller amassed an enormous fortune as a result of the success of his Standard Oil Trust Company. By 1900, Standard Oil dominated the domestic oil refinery business and controlled 80 percent of all oil refinery capacity in the United States. After years of litigation, the Supreme Court ruled that Standard Oil was a monopoly that had to be dissolved. Standard Oil was dissolved into six sub-oil companies, and John D. Rockefeller became the largest single stockholder in those companies – the predecessors of Exxon, Mobil, Amoco, and Chevron.
In 1882, prior to the dissolution of Standard Oil Trust, John D. Rockefeller started the Rockefeller Family Office. As of 2000, the Rockefeller Family Office converted to a Multi-Family Office, with over 100 employees serving not only the Rockefeller family but 200 other non-family clients.
The purpose of a Family Office is to coordinate, organize, plan, and oversee the wealth of ultra-high net worth individuals and their families. The Family Office becomes the “coach” and “quarterback” for the management of the family’s financial and wealth affairs.
A Multi-Family Office (“MFO”) is an organization that services more than one Family Office. We bring together back-office support along with our infrastructure, technology, and business process automation using the FamilyWealth™ platform.
The primary benefit of an MFO model is driven by: (1) the interest for Family Office services without building a Single Family Office(“SFO”), (2) the desire to delegate and centralize the management of wealth, and (3) the relative cost savings.
Austin Capital will lead the process to identify, select, diversify, and monitor money managers for the portfolio. Creating the financial strategy for the family office, the CIO directs the investment policy statement, and outlines and establishes investment benchmarks.