Episode 9 of 10
Onboarding the First Year
The first year with a multifamily office sets the rhythm for the years that follow. Good onboarding turns a signed agreement into clear responsibilities, reliable reporting, and a working relationship your family can trust.
Family Office Service Providers & Partners - What to Know
Start with a written map
Use the first 30 days to document what the multifamily office will do, what stays with your family, and who owns each decision. List every account, entity, property, insurance policy, loan, trust, and major obligation included in the review. Include outside advisers and the information they need to share. A simple responsibility chart helps prevent duplicated work and gaps.
Ask for a written service calendar. It should show meeting dates, reporting dates, tax deadlines, capital calls, distribution reviews, and annual policy reviews. Name the person responsible for each item. Keep one current version in a secure family location.
Build the data room carefully
Onboarding usually requires sensitive records. Create a controlled data room with folders for ownership documents, statements, estate documents, tax records, insurance, property information, and investment files. Use unique passwords and multifactor authentication where available.
Agree on an intake process before sending files. Confirm the office's secure portal, user permissions, retention policy, and procedure for removing access when a staff member leaves. Start with read-only access when full transaction authority is not needed. Keep a log of who can access each system.
The merits of the deal matter only half as much as the trust in the relationship with the person you're dealing with. So if they trust you more, they don't care if you have less experience typically or if the collateral is not as healthy, et cetera, if they actually trust you.
Set the investment and reporting baseline
The office should turn your agreed goals, time horizons, liquidity needs, and risk limits into a written investment policy statement or equivalent mandate. The document can cover target allocations, rebalancing authority, concentration limits, private investment pacing, and approval thresholds. It should also state how exceptions are documented.
Set a reporting baseline before the first report arrives. Confirm the valuation date, performance method, benchmark, cash-flow treatment, and treatment of private assets. Ask how often reports are issued and who reviews them with your family.
For assets held by a custodian, confirm how statements are delivered and how the office reconciles them. Review statements regularly and confirm who holds the assets. Ask for a consolidated data view that brings the relevant accounts and obligations together for review.
Use a 90 day check-in
At about 90 days, hold a short operating review. Compare the service calendar with what actually happened. Check whether requests were answered on time, reports were understandable, and the right family members were included. Review open items, missing documents, and decisions that still lack an owner.
Make a written list of changes. You may need to adjust meeting frequency, report format, approval limits, or the division of work with your CPA, attorney, banker, or property manager. Keep the original onboarding plan and the revised version so the family can see what changed and why.
Having that crystal clear vision is most important. And with that extreme focus, apply many different combinations of actions that all add value first.
Run the first annual review
At the end of year one, review the relationship against the mandate you agreed at the start. Cover service delivery, total fees, conflicts disclosures, portfolio risk, liquidity, cash management, tax coordination, and family communication. Ask for a summary of material decisions and unresolved issues.
Review the office's disclosure materials when applicable. Confirm that services, fees, conflicts, and relevant disciplinary history are clearly documented.
Use the annual review to approve a short list of priorities for year two. Keep the list limited to the work that matters most, such as simplifying entities, improving cash forecasting, preparing the next generation, or reviewing concentrated holdings. A focused plan makes follow-through easier.
Checklist
- Create a service calendar and responsibility chart covering every account, entity, adviser, deadline, and approval owner.
- Set up a secure data room, confirm access controls, and record which people can view or move information.
- Hold 90 day and annual reviews using the written mandate, reporting baseline, service results, fees, and open items.
Takeaway
Treat onboarding as a 12 month operating plan. Put responsibilities, data access, reporting rules, and review dates in writing, then test the plan at 90 days and again at year end.