Many family offices have made a «very significant miscalculation» regarding operating costs, according to Rajeev Natarajan, a managing director at US-based ICONIQ Capital, which reportedly serves renowned clients such as Mark Zuckerberg.
Single-family offices may have to spend $5 million to $7 million per annum on operating expenses, according to Rajeev Natarajan, managing director and head of APAC at ICONIQ Capital. The costs are primarily attributable to investment teams.
«There was a very significant miscalculation to arrive at what an appropriate team looks like,» said Natarajan during a panel at the Endowus WealthTech Conference 2023.
Outsourcing Balance
While many would like to retain complete control of resources and functions, family offices with less than $1 billion in assets under management should consider outsourcing an option, according to Natarajan.
«What's the right hybrid approach? It's tough to [manage costs while] intermediating investment markets sitting here in Southeast Asia,» he commented.
Founded in 2011 by ex-Morgan Stanley and Goldman Sachs bankers, ICONIQ Capital is a multi-family office that reportedly includes Silicon Valley tech billionaires amongst its client base, including Mark Zuckerberg and Jack Dorsey. According to the San Francisco-based firm, it has over $80 billion in assets under management.
