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lawyers, and back office. It has been in existence since 1882, and manages over $5.5 billion for 178 family members in the third, fourth, and fifth generations as well as nonfamily members. Non-Rockefeller wealth accounts for about half the assets.1 In sharp contrast are other family offices that are run as one-person offices.

In some cases, the family office may eventually broaden out and accept other families' and friends' money. For example, the Rockefeller family office started doing this in 1980, and introduced its first fund of funds in January 1999.

Multiple family offices are becoming more popular. Variations include family offices that have been developed for sports athletes or family offices for investors from a certain country or region. By bonding together, either formally or informally, the individuals in the group gain more clout.

As a group, individuals and families are concerned about after-tax returns. They often request to see performance numbers after taxes have been taken out. Fees are another area of concern. Family offices are often interested in a hurdle rate structure where the manager gets paid if he or she reaches a certain benchmark first, which could be Treasury bills, S&P, LIBOR (London Interbank Offer Rates), or other point of reference.

Up until 1997, there could only be 99 accredited investors in a hedge fund if the hedge fund were not registered as a registered invest-