More than 94 per cent of investment managers say the desire to do a better job for clients is the strongest motivation for becoming a multi-family office, according to a new report by US accountants Rothstein Kass.

The Multi-family Office Solution survey was put to 103 multi-family offices, both within and outside the US. Nearly 86 per cent of respondents suggested that being more profitable ranked as an important catalyst for change, as firms enhance and reposition services to attract high net worth families to the multi-family office structure.

A flash survey of 110 high net worth investors included in the report offers validation for this strategy, with 40 per cent of respondents identifying multi-family offices as a likely destination for assets. In part due to the array of financial management tools available to them, wealthy families generally enjoyed consistently strong investment returns in the years leading up to the market meltdown. In some instances, the pursuit of wealth creation resulted in a diminished short-term focus on wealth preservation and legacy concerns.

“More recently, declining net worth and persistent market volatility have compelled some wealthy families to reassess long-term priorities, increasing demand for investment advisors that treat investment and advanced planning as unified functions," said Rick Flynn, a principal in the family office group at Rothstein Kass.

"Our research shows that multi-family offices are a likely destination for assets taken from a primary advisor, suggesting that investors are more cognizant of the role an efficiently structured multi-family office can play in the due diligence process. This creates an opportunity for alternative investment firms to work in tandem with MFO firms to provide the greater transparency that high net worth investors demand."

"Inclusive service offerings and the capacity for sharing of resources are quickly establishing multi-family offices as a preferred structure among the ultra-wealthy. However, the firms that will succeed over the long-term recognise that they are essentially managing a business - with a unique brand encompassing a broad array of distinct but related interests. Integrating these aspects requires a talented chief operating officer who can coordinate resources to enable clients to spend more time enjoying the benefits of their wealth," said Mr Flynn.

Beyond accounting, Rothstein Kass provides a full array of consulting services, including family office services, strategic business counselling, regulatory compliance and SEC advisory services, and insurance and risk management consulting. The firm has offices in California, Colorado, New Jersey, New York, Texas and the Cayman Islands.