Glossary

Alternative assets are non-traditional holdings, such as private equity, real estate, and digital assets, used by family offices to diversify and build resilient portfolios.

Alternative investments are non-traditional strategies, like private equity, hedge funds, and real assets, used by family offices to diversify portfolios and enhance returns.

Regulations and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income.

The process of distributing investments among various asset classes to balance risk and reward according to an individual’s goals. The process of dividing a portfolio among different asset classes, such as stocks, bonds, and real estate.

The direction of a client’s cash and securities by a financial services company, usually an investment bank.

The total value of assets managed for clients, including reporting and safekeeping, but without direct investment authority.

The total market value of the financial assets that a family office manages on behalf of its clients.

A group of individuals responsible for overseeing the family office’s financial reporting and internal controls.

A field of study that examines psychological influences on investors and financial markets.

Comparing performance metrics to industry standards or best practices to assess efficiency and effectiveness.

Designating individuals or entities to receive assets from wills, trusts, or insurance policies.

A decentralized ledger technology that securely records transactions across multiple computers.

CFA Charterholders are investment professionals with the Chartered Financial Analyst (CFA) designation, recognised for expertise in portfolio management, financial analysis, and ethical investing.

Investment strategies focused on preventing loss of principal in a portfolio.

Monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses.

Donating resources to charitable organizations, often for tax benefits and social impact.

A Chief Financial Officer (CFO) in a family office oversees financial planning, reporting, and tax strategy to ensure long-term wealth preservation and compliance.

A Chief Investment Officer (CIO) in a family office manages investment strategy, asset allocation, and risk to preserve and grow family wealth.

Citizenship By Investment (CBI) programs enable individuals to obtain citizenship by making financial investments in a country, offering benefits such as global mobility, tax advantages, and access to enhanced opportunities.

Collaborative investments where several families or investors pool capital and expertise to invest directly in private companies, real estate, or other assets—often to access larger deals and share risk.

When family offices pool their money together to make an investment.

Systematic patterns of deviation from norm or rationality in judgment, affecting investment decisions.

A multi-family office that looks after the interests of multiple families, often with less wealth than those served by private multi-family offices.

Basic goods used in commerce that are interchangeable with other goods of the same type, such as oil, gold, or wheat.

Adhering to laws, regulations, guidelines, and specifications relevant to the family office’s operations.

The risk of loss due to a large position in a single asset or market segment.

Legal contracts ensuring that sensitive information shared between parties remains private and protected.

A situation where a party’s responsibility to a second-party limits its ability to discharge its responsibility to a third-party.

Combining all financial data into a single report to provide a comprehensive view of assets and performance.

Mechanisms, processes, and relations by which corporations are controlled and directed, ensuring accountability and fairness.

A digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority.

Safekeeping of securities by a financial institution on behalf of clients, including settlement, reporting, and compliance.

A financial institution that holds customers’ securities for safekeeping to prevent them from being lost or stolen.

Protecting systems, networks, and programs from digital attacks, crucial for safeguarding sensitive financial information.

Assets in digital form, including cryptocurrencies and digital tokens, requiring specialized management and security.

Integration of digital technology into all areas of business, fundamentally changing how organizations operate and deliver value.

When a family office invests directly in a company or asset, rather than through a fund.

Investing directly in assets like real estate or companies, bypassing intermediaries like mutual funds or ETFs.

An arrangement where an investment manager makes decisions to buy or sell assets without client approval for each transaction.

Investing in a variety of assets to reduce exposure to any single asset or risk.

The process of selling off subsidiary business interests or investments, often for strategic or ethical reasons.

A philanthropic giving vehicle that allows donors to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from the fund over time.

A comprehensive appraisal of a business or investment opportunity to evaluate its commercial potential and risks.

A trust designed for preserving and transferring wealth across generations without incurring estate or generation-skipping taxes.

A set of standards for a company’s operations that socially conscious investors use to screen potential investments.

Incorporating Environmental, Social, and Governance factors into investment analysis and decision-making.

Spreading investments across various sectors or regions to reduce exposure to any single economic risk.

Statistics about economic activities that allow analysis of economic performance and predictions of future performance.

A sustainable competitive advantage that allows a company to protect its market share and profitability.

A projection of future economic conditions used to inform investment strategies and risk assessments.

Laws requiring entities to demonstrate substantial economic activity in the jurisdictions where they are incorporated, often affecting tax planning.

A structured approach to managing processes and assets from creation to retirement, ensuring efficiency and compliance.

Preparing for the transfer of an individual’s wealth and assets after death through wills, trusts, and other legal mechanisms.

Everyday millionaires (EMILLIs) are individuals with $1M–$5M in investable assets, a segment that has quadrupled since 2000 to 52 million people holding $107 trillion in wealth, driven by property growth, currency shifts, and wider investment access.

A gathering of all family members to discuss and inform about matters concerning the family enterprise and wealth.

A group of individuals responsible for providing oversight and guidance to the family business.

A document outlining the family’s values, vision, and guidelines for managing wealth and business interests collectively.

A formal document that records the family’s mission, values, and policies regarding the management of their wealth and business interests.

A governance body composed of family members that manages communication and decision-making for the family enterprise.

The shared values, beliefs, and practices that shape interactions and decision-making within a family enterprise.

The patterns of interaction and relationships among family members, impacting decision-making and governance.

A family-owned business or group of businesses managed by multiple family members across generations.

The system of joint decision-making and structures that families use to guide the management of their shared assets and business interests.

A private company structure used by families to manage and control assets in a tax-efficient manner.

The lasting impact and reputation a family builds over generations through wealth, values, and contributions to society.

A declaration of the family’s core purpose and focus that remains unchanged over time, guiding decision-making and governance.

An entity that provides comprehensive services to ultra-high-net-worth individuals and families for managing their wealth and interests across multiple generations.

A group of individuals responsible for providing oversight and guidance to the family office.

A professional responsible for managing the operations and strategic direction of a family office.

The framework of policies and procedures that guide the operations, decision-making, and oversight of a family office.

A practical framework to benchmark how a family office operates across governance, people, process, and technology, and to sequence upgrades from Foundational to Institutional maturity.

Technology solutions designed to streamline operations, reporting, and data management for family offices.

A legal arrangement where assets are held by a trustee for the benefit of family members, often used for estate planning and tax efficiency.

Technology innovation aimed at competing with traditional financial methods in the delivery of financial services.

An objective examination and evaluation of a company’s financial statements to ensure accuracy and compliance with regulations.

Programs and initiatives aimed at increasing financial literacy among family members, especially the next generation.

Monetary contracts between parties, including stocks, bonds, loans, options, and futures.

Responsible management and oversight of financial resources on behalf of others, ensuring ethical and effective use.

Investments that provide a return in the form of fixed periodic payments and eventual return of principal at maturity.

Generational wealth refers to financial and non-financial assets transferred from one generation to the next, requiring intentional long-term planning to preserve and grow the family’s legacy.

A service where a financial institution holds securities for clients in multiple jurisdictions, handling settlement, reporting, and compliance.

The movement of individuals and families across borders, impacting tax residency, legal obligations, and wealth management strategies.

The system of rules, practices, and processes by which a family office is directed and controlled.

The framework of rules and practices by which a family office or business ensures accountability, fairness, and transparency in its relationships.

An alternative investment vehicle using pooled funds that employ various strategies to earn active returns for investors.

The skills, knowledge, and experience of the family office’s employees.

Investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.

The possibility that the value of assets or income will be eroded as inflation decreases the purchasing power of money.

The passing of assets from one generation to the next, often involving estate planning and tax considerations.

A group responsible for making key investment decisions and overseeing the management of the investment portfolio.

A rating that indicates a relatively low risk of default, applied to bonds and other fixed-income securities.

A document outlining an investor’s objectives, risk tolerance, and guidelines for managing an investment portfolio.

A document that outlines the investment objectives, risk tolerance, asset allocation targets, and guidelines for a family office portfolio. The IPS serves as a strategic compass for the investment team, ensuring decisions remain aligned with the family's long-term goals. It typically covers return expectations, liquidity requirements, concentration limits, ESG considerations, and rebalancing protocols.

The strategic process of selecting and managing a mix of assets—like stocks, bonds, and alternatives—to meet defined investment goals.

A plan that outlines how the family office will invest its assets.

The potential for losses due to changes in laws, regulations, or political stability in a country where investments are held.

Measurable values that demonstrate how effectively objectives are being achieved within an organization.

Regulatory compliance process used to verify the identity and suitability of clients to prevent fraud and money laundering.

Preparing strategies to ensure one’s values, wishes, and financial assets are passed down to future generations as intended.

The ability to buy or sell an asset quickly and easily at a price close to its fair market value.

A transaction that allows owners to convert their equity into cash, such as an IPO or sale of the company.

An investment account owned by an individual investor but managed by a professional money manager.

The extent to which a market allows assets to be bought and sold at stable prices and in sufficient volumes.

The process of organising and overseeing legal cases, workflows, and documents to ensure transparency and risk management.

The consolidation of companies or assets through various financial transactions, important for growth strategies.

A statement that defines the family office’s purpose and values.

The process by which a central bank manages the supply of money to achieve specific goals like controlling inflation or unemployment.

A clause ensuring one party receives terms as favourable as those given to any other party in contracts or agreements.

A family office serving multiple families, pooling resources to provide comprehensive wealth management services.

A private organization that provides wealth management services to multiple families, sharing costs and infrastructure. MFOs typically serve families with $10M–$100M in investable assets who want family-office-level service without the overhead of a dedicated operation. Services include investment management, consolidated reporting, tax coordination, and access to institutional-quality deal flow.

Involving the younger generation in wealth management and decision-making processes to prepare them for future responsibilities.

The children and grandchildren of the family office’s founders.

A legal contract establishing a confidential relationship between parties to protect sensitive information.

Holding assets in financial jurisdictions outside one’s country of residence, often for tax benefits or diversification.

Open-Source Intelligence (OSINT) is the practice of collecting and analysing publicly available information to produce actionable insights, often used in family offices for due diligence, risk monitoring, and reputation management.

The expenses incurred by the family office in running its day-to-day operations.

Risks arising from internal processes, people, and systems, or external events impacting operations.

An Outsourced CFO is a part-time or project-based financial expert who provides strategic oversight and planning without the need for a full-time hire, making them ideal for evolving family office needs.

An Outsourced Chief Investment Officer (OCIO) provides family offices with external investment management, offering expertise and risk oversight without requiring an internal CIO.

A tax-efficient solution combining life insurance with investments to support wealth growth, transfer, and confidentiality.

An investment approach aiming to replicate market index performance rather than outperform it.

Long-term capital committed with the understanding that returns may take years to materialize, often used in mission-driven or strategic investments.

A non-profit organization established by a family or individual to support charitable activities through grants and donations.

The act of donating money, goods, services, or time to support charitable causes and promote the welfare of others.

The art and science of making decisions about investment mix and policy to match financial objectives.

Portfolio management software helps family offices and investors oversee, analyse, and optimise their portfolios by centralising performance tracking, reporting, and strategic oversight.

A secure, dedicated cloud infrastructure for exclusive use, offering enhanced control, security, and regulatory compliance.

Capital investment made into private companies not listed on public exchanges, often to fund growth or restructure operations.

A multi-family office with a founding family that holds at least 50% of assets under management and serves no more than eight families. They are owned and operated for their benefit.

Offering of securities to a small number of selected investors as a way of raising capital without going public.

A Private Trust Company is a family-controlled entity serving as trustee, offering personalised governance and privacy for managing family trusts.

Delegating voting power on corporate matters to a representative, often used in shareholder meetings.

Third-party cloud services providing scalable and cost-efficient computing resources over the internet for organizations.

A monetary policy where a central bank purchases government securities or other securities to inject money into the economy to expand economic activity.

Property consisting of land and the buildings on it, along with its natural resources.

A Registered Investment Advisor (RIA) is a fiduciary professional or firm that offers fee-based investment advice and is registered with either the SEC or state regulators.

Adherence to laws, regulations, guidelines, and specifications relevant to business processes, ensuring legal operation.

The potential loss resulting from damages to an organization’s reputation, affecting stakeholder confidence.

The process of identifying, assessing, and mitigating risks that could affect the family office.

Subscription-based software solutions hosted in the cloud, offering flexibility, scalability, and cost-efficiency for users.

A strategic planning method used to make flexible long-term plans based on different future scenarios.

Separately Managed Accounts (SMAs) are personalized investment portfolios managed by professional advisors, offering tailored strategies, direct ownership of assets, and greater control compared to pooled investment vehicles.

A Simple Agreement for Future Equity (SAFE) is a funding mechanism where investors provide capital to startups in exchange for future equity, typically at the time of the next investment round, without setting a fixed valuation upfront.

A family office that serves a single family.

A private organization that manages the financial affairs and investments of one ultra-high-net-worth family. An SFO typically serves families with $100M+ in assets, providing comprehensive services including investment management, tax planning, estate planning, philanthropy coordination, and lifestyle management. Unlike multi-family offices, an SFO is dedicated exclusively to one family, offering maximum privacy, customisation, and control.

An investment strategy that screens companies based on ethical, social, and environmental criteria, often excluding industries or practices that do not align with the investor’s values.

The risk that a foreign central government will default on its financial obligations.

Sovereign Wealth Funds (SWFs) are state-owned investment funds that manage national reserves, often sourced from trade surpluses or natural resource revenues, with a focus on long-term wealth creation and stability.

A Special Purpose Vehicle is a distinct legal entity designed to isolate financial risk and facilitate high-risk investments or joint ventures.

A stablecoin is a cryptocurrency designed to minimise price volatility by being pegged to a stable asset like the US dollar.

A long-term investment strategy that sets target allocations for various asset classes and periodically rebalances the portfolio back to those targets.

A planned approach to charitable giving, aligning philanthropic efforts with personal values and societal needs for greater impact.

Pre-packaged investment strategies based on derivatives and a variety of underlying assets to meet specific risk-return objectives.

The process of planning for the transfer of ownership and management of the family office to the next generation.

An investment approach that considers environmental, social, and governance factors in addition to financial returns.

An active management portfolio strategy that shifts the percentage of assets held in various categories to take advantage of market pricing anomalies.

Analyzing financial situations from a tax perspective to minimize tax liability and maximize efficiency.

Time-Weighted Rate of Return measures portfolio performance by neutralising cash flow impacts, offering an accurate assessment of investment strategy effectiveness.

A Trust Protector oversees trust administration, ensuring trustee compliance, resolving disputes, and maintaining alignment with the trust’s objectives.

An Ultra-High-Net-Worth Individual (UHNWI) is a person with investable assets exceeding $30 million, requiring bespoke financial, legal, and lifestyle management services, often through family offices.

Financing provided to startups and small businesses with long-term growth potential by investors in exchange for equity.

Venture studios are organisations that create and launch startups in-house, offering a structured model for family offices to build aligned businesses from the ground up.

A technology-oriented family office that outsources many of its functions.

Wealth management software helps advisors and family offices manage portfolios, financial planning, reporting, and client relationships in one secure, integrated platform.

Strategies aimed at protecting existing wealth from erosion due to taxes, inflation, or market risks.

Designing financial and legal frameworks to manage, protect, and transfer wealth efficiently.

Wealth Tech refers to the use of digital tools and AI-driven solutions to enhance wealth management, investment strategies, and financial planning.