Family Office FAQs

A family office is a wealth management firm that serves ultra-high-net-worth individuals (UHNWI) and families. This office typically offers outsourced solutions to meet the specific needs of its clients. Considering the complexity of its services and advisory, a family office is far beyond the capabilities of individual professionals. Most family offices are privately controlled and established by a family to centralise management of their wealth, governance, succession, and lifestyle matters under one structure.

A family office is a privately held company that handles the wealth management of at least one family or ultra-high-net-worth individual. Depending on the number of incumbents, a single family office or multi-family office might be best suited. While definitions vary by region, the core feature is consolidated, personalised service tailored to the financial and non-financial needs of a wealthy family.

A family office helps its incumbents manage and grow their financial wealth, support long-term goals, manage their unique needs of various kinds, and coordinate their assets with a unified strategy. It also supports generational continuity, protects family values and legacy, and creates governance frameworks that align stakeholders over time.

A family office offers a complex scale of services and advisory. These solutions vary from office to office based on their focus and asset class management. It is therefore essential to clearly determine one’s needs before starting or joining a family office. Core functions typically include investment management, tax planning, legal structuring, philanthropy, reporting, family governance, and succession support.

While private banks serve wealthy clients, family offices focus on super wealthy clients - they usually serve clients with at least $5 million who are able to invest in assets across various classes. Although private banks grow their focus on families and keep improving their services, family offices maintain their position by offering tailored solutions for their clients’ unique needs. Family offices are also independent and not incentivised to sell specific products, which helps avoid potential conflicts of interest that may exist in private banking models.

Joining or building a family office is beneficial for those individuals or families, with a very high disposable income and who are interested in growing this wealth. Clients of family offices receive professional advisory services that help them above all manage their wealth, invest in various asset classes and preserve their wealth for future generations. Families with $100 million or more typically establish Single Family Offices, while those with $10–50 million often opt for Multi-Family Office solutions to access similar benefits at shared cost.

There are three types of family offices - a single family office, multi-family office, and virtual family office. Each of these types offers a different approach to wealth management. Before joining or establishing your own family office, you should evaluate your needs to choose the most suitable type for you. Virtual Family Offices are leaner setups using outsourced providers and digital tools to replicate traditional functions without a physical team or office space.

A multi-family office is a type of family office. It is established to serve a group of at least two affluent families or (ultra-)high-net-worth individuals and offer them services and consultancy. In contrast with single family offices, multi-family offices are usually managed by a third party or were originally single family offices that offered their services to more families. MFOs often offer economies of scale, professional management, and shared access to investment opportunities that may otherwise be inaccessible to smaller families.

A single family office is a type of family office. Generally, it is established by the (ultra-)high-net-worth family itself. Contrarily to a multi-family office that serves a group of affluent families, a single family office provides the most tailored services as they manage the wealth of one family only. SFOs also provide full control over staffing, decision-making, data, and strategic direction—enabling total alignment with the family’s vision, values, and long-term goals.

The main difference is in the number of families they serve. While a single family office focuses their services on managing the wealth of one family only, a multi-family office serves a group of affluent families. Due to its tighter scope, a single family office can offer more tailored services than a multi-family office. MFOs can be more cost-efficient and provide immediate access to institutional-grade infrastructure, whereas SFOs require greater resources to set up and manage independently.

The decision to launch a family office needs to be a well-justified and informed business decision. Family offices have proven to be hugely beneficial to many wealthy families but are not necessarily a good fit for all. If there is a business case, a family should consider resource requirements including staffing, tax, legal and governance streamlines. Find a complete guide to starting a family office here. Early-stage planning should also include defining purpose, succession priorities, operational scope, and whether to build capabilities in-house or via outsourcing.

Family office investing is a type of investment that is beneficial to a family’s wealth, which helps its growth. There are many investment opportunities for family offices, including venture capital, impact, cryptocurrency, innovation, or education. Family office investing refers to how families deploy capital across asset classes to grow and preserve their wealth. Common strategies include private equity, real estate, venture capital, impact investing, and alternatives such as crypto or collectibles.

Family offices can choose from a wide range of investment opportunities be it real estate, venture capital and start-ups, impact and sustainability, innovation or cryptocurrency. Many family offices also invest directly into private companies or co-invest with other families through club deals or private networks, aligning values and long-term goals.

Family office advisors are professionals focusing on one or more aspects of family office operations. They can work in the family office or individually. Find the list of verified family office experts and advisors here. Advisors may specialise in areas such as investment strategy, legal structuring, tax, philanthropy, or governance, and are often engaged during key transition points or restructuring.