AYU Approved

Family Office Program 

 

The AYU Approved Family Office (AFO) Program is designed to help investment professionals navigate the often opaque and increasingly complex world of family offices.

In recent years, as the family office has become a far more prevalent entity, it has become progressively more difficult to understand and assess what a family office actually is. In addition, it has become common and easy for unscrupulous individuals or businesses to misrepresent themselves as a family office, in order to gain access to events, private transactions, data and genuine family offices.

There are two key issues presented here which the AFO program seeks to address; the definition of a family office, and the verification of a person or business that claims to be a family office, as a family office.

What is a family office?

A wide range of definitions and maxims exist for answering this question, but this range itself contributes to confusion. In addition, there is a difference in goals and models between single and multi-family offices, both of which can gain AFO status.


We define a single family office as:

A private organisation dedicated solely to the management of one family’s assets, with a minimum of $50,000,000 assets under management or in net asset value. It does not manage the assets of, or generate revenue from, third party asset management, advisory or capital introduction.

Multi-family offices are somewhat more complex to define and are treated on a case by case basis when applying for AFO status.

How do we verify a family office is genuine?

In order to be classified as an AFO, an applicant must:

  • Register with AYU (free of charge)

    • Submit an application describing their organisation and its goals.

  • Attest to status

    • Attest that they fit within the AYU definition of a family office and that they are representing themselves truthfully

  • Provide family office or business references

    • Provide references from other family offices or businesses who are willing to confirm that they fit within the AYU definition of a family office and are representing themselves truthfully. References from existing AYU and AFO members are preferred.

  • Provide private bank references

    • Provide a reference from their primary private banking provider that they fit within the AYU definition of a family office and that they are representing themselves truthfully

      and/or

  • Provide investee references

    • Provide a reference from someone who has received investment from the family office.

and/or

  • Be willing to privately introduce the family office principal to an AYU team member

  • Understand what false representation means

    • Applicants must understand that if they gain AFO approval and subsequently engage in activity that contravenes their attestation, their status as an AFO will be revoked, and that a record of this will be made available.

What happens once a family office has been approved?

Once a family office has been approved they will receive confirmation from the AFO program and their AYU profile will show an AFO badge. They are also permitted to use “AFO” in any public notices of themselves or their businesses. They will be searchable on the AFO database as an AYU Approved Family Office. Finally, AYU community members are able to provide ongoing verification via their interactions with the family office, providing a shared-trust safeguard.

Important information

  • AFO approval is free - it does not cost anything to become approved, nor is there any commitment to fees or transactions by gaining approval.

  • The approval process does not seek to gain any proprietary information about a family office’s businesses, holdings or assets.

  • The approval process does not seek to have an exact AUM/NAV disclosed, unless a family office wishes to do so.

  • AFO approval is not a proxy for KYC or AML procedures, which should always be carried out independently.

  • The AFO database will be made available once it is populated with our initial AFO members.

  • AFO approval does not represent a ratification or endorsement of any investment, nor does it constitute financial advice.

  • Family offices operating and offering their own regulated investment funds can apply for the AFO and are considered on case by case basis.

  • Multi family offices can apply for the AFO and are considered on case by case basis - they do not need to represent one family only.