August 2021 Issue: Building an open Family Office-Building an open Family Office by Bridget McCrea

Building an open Family Office by Bridget McCrea

Pdf Summary

WMS Partners, a private wealth management firm in Towson, MD, has implemented an "open family office" approach to provide family office services to a larger client base. This approach allows the firm's wealthy, but not family-office level, clients to benefit from the firm's in-house expertise and resources. Clients have access to a 70-person team with deep investment, advisory, and estate planning expertise, which helps them avoid financial blind spots and gain exposure to a larger pool of ideas.<br /><br />WMS Partners, which was founded in 1993 and has been fee-only since inception, serves about 425 families, 40 of which are family office-level engagements. The firm manages approximately $4.5 billion in assets, and roughly one-third of that involves private investments that aren't publicly traded. These private investments, such as apartment buildings, generate annual cash flow and provide overall returns in the low- to mid-teens.<br /><br />The firm takes an eclectic approach to portfolio construction by utilizing stocks, bonds, mutual funds, and private investments. This allows WMS Partners to share new ideas with its client base and introduce cash flow opportunities that clients wouldn't typically get from traditional investments.<br /><br />Chad Norfolk, principal and shareholder at WMS Partners, joined the firm in 2014 and was attracted by its long-term plan and the opportunity to become part of the next generation that would run the firm. Norfolk also values the camaraderie and connections provided by NAPFA membership, and the firm actively focuses on recruiting and retaining employees in a competitive labor market by offering clear career paths, engaging younger employees, and emphasizing succession planning.<br /><br />Looking ahead, WMS Partners plans to expand its geographic footprint and build its brand nationally, with a potential presence closer to Washington, D.C. The firm seeks growth through acquisitions or mergers rather than ground-up development.

Keywords

WMS Partners

private wealth management

Towson

open family office

family office services

investment

advisory

estate planning

portfolio construction