The number of single-family offices (SFOs) is growing fast, with an estimated 8,000+ today and projections of up to 10,000 by 2030. With over $3 trillion under management globally, these entities have become significant players in the financial world. Jurisdictions like Singapore and Hong Kong are actively competing to attract these “heavy hitters,” recognising their economic impact.
Traditionally, single-family offices are established to manage wealth—often resulting from successful businesses, company sales, or significant financial accumulation. The rule of thumb for setting up an SFO is typically between 500 million and 3-4 billion in assets for a fully in-house operation. Over time, SFOs have evolved far beyond wealth management. Today, they also handle lifestyle management, family governance, and a host of other services tailored to the family’s needs.
The risk of disconnection in an era of sophistication
While single-family offices have become more advanced, this evolution comes with risks. Wealth management alone is highly complex, encompassing investment management, risk management, tax planning, estate planning, and impact investing—often across multiple jurisdictions. Add to this the rise of AI, digital tools, and ever-evolving technologies, and it’s easy to see how family members might feel disconnected.
A lack of knowledge, education, and engagement can create a dangerous gap between the family and their office. Some family members may even feel intimidated or fear appearing uninformed. This disconnect can lead to a situation where the family office operates independently, turning family members into silent partners—present in name but absent in influence. Without meaningful input or alignment with the family’s values and goals, the single-family office risks losing its purpose and direction.
Education and collaboration: The path forward
To avoid becoming silent partners, families must prioritise education and continuous learning. As one family owner wisely advised the next generation: “Stay curious, explore, and keep learning.” This mindset is essential for maintaining informed, engaged, and empowered owners who can actively guide their family office.
Here’s how families and executives can work together to bridge the gap:
For families:
- Commit to ongoing education: Attend workshops, seminars, and training sessions to build financial literacy and governance skills.
- Stay curious and engaged: Regularly explore new ideas, ask questions, and stay informed about the family office’s activities.
- Encourage next-gen involvement: Empower younger family members to take active roles, bringing fresh perspectives and energy to the SFO.
For executives:
- Maintain open communication: Organise regular talks with family members about decisions, performance, strategic initiatives as well as non-financial topics.
- Educate and involve the family: Provide resources and opportunities for family members to learn about the SFO’s operations and goals.
- Build trust and relationships: Create a culture of collaboration by engaging family members in meaningful discussions and decision-making processes.
Knowledge is power: Use your voice
This article serves as a reminder: knowledge is power, and engagement is key. Families must stay curious, informed, and involved to ensure their SFO remains true to its purpose. By working together—families and executives alike—SFOs can thrive as tools for preserving wealth, legacy, impact, and family unity for generations to come.
After all, the family office exists for one reason: the family. Let’s keep it that way by ensuring families never become silent partners in their own stories.