PeterVogel

AlexisduRoydeBlicquy

AnoukLavoie

ChristineGaucher

th[6lobal

familyoffi([

R[卩ort

TheEvolvingIdentitiesofFamilyOffices:AFamily-FirstLens

IMD

ReallearningRealimpact

FOREWORD

Familyofficesarenolongerquietback-officestructures.Theyarenowconsideredtobe

strategicenginesattheheartoffamilywealthandlegacy.ThatiswhytheIMDGlobalFamilyBusinessCenterandtheFamilyBusinessNetwork(FBN)havetogetherlaunchedthisglobal

researchproject:tounderstandhowfamilyofficesevolve,adapt,andre-definethemselvesasthefamiliesbehindthemgrow,generationsshift,andtheworldaroundthemaccelerates.

Withacombined73yearsofexperienceworkingalongsideenterprisingfamilies,webring

deepexpertisetothisstudy.Ourgoalisclear:toequipfamilieswithinsightsthathelpthem

strengthentheirwealthmanagementpracticesinanenvironmentshapedbyrapidfinancial

innovation,newtechnologies,andprofoundsocialchange.Ourreportalsohighlightshow

familyofficescontributetotheglobaleconomythroughtheallocationofsignificantresources,innovation,entrepreneurship,andtechnology.

Unlikemanyinstitutionalreportsonfamilyoffices,thisstudycombinestheacademicrigorofIMDwiththelivedexperiencesandstoriesofFBNfamiliesworldwide—blendingdatawiththewisdomofaglobalcommunity.

Wechosetoviewthefamilyofficethroughafamily-firstlens.Behindeveryofficeliesa

familywithitsownpurpose,aspirations,andvalues.Thefamiliesweengagedwitharenot

passiveinvestors;theyarelearningfamilies,opentogrowth,renewal,andexchangeandtheirwillingnesstolearnisreflectedinthedata.

Morethanhalfofthefamilyofficessurveyedalreadyintegrateeducation(56%)and

professionaldevelopment(52%)intotheirservices.Agrowingnumber(38%)gofurther,by

providingphysicalandpsychologicalsupport.Thesefindingsshowthatfamiliesincreasingly

viewtheirofficenotonlyasafinancialhub,butasaplatformtodeveloppeople,purpose,andresilience.

Thisreportrevealsapowerfultruth:managingwealthtodayisaboutmuchmorethanfinancialcapital.Familiesareinvestinginhuman,social,intellectual,andreputationalcapitalwiththesamecaretheydevotetofinancialassets.Indoingso,thefamilyofficebecomesmorethan

aguardianofwealth—itisaunifier,abuilderoflegacy,andacatalystforfamiliestothrive,generationaftergeneration.

Prof.Dr.PeterVogel

ProfessorofFamilyBusiness&Entrepreneurship

DirectorGlobalFamilyBusinessCenter

AlexisduRoydeBlicquy

CEO

FBN(FamilyBusinessNetwork)

DebiopharmChairforFamilyPhilanthropyIMDBusinessSchool

GlobalFamilyOfficeReport|3

TABLEOFCONTENTS

10INTRODUCTION

12FUNDAMENTALSOFTHEFAMILYOFFICE

12Thefamilyoffice

12Familyenterpriseecosystemandtotal

familywealth

13Typesoffamilyoffice

15STUDY

16ABOUTTHISSTUDY

16ABOUTTHESTUDYPARTICIPANTSAND

THEIRFAMILYOFFICES

16Location

17Rolesofthesurveyrespondents

18Timeoffoundationofthefamilyoffice

18Generation

19Familybusinessownership

21

GLOBALSURVEY

22KEYTAKEAWAYSFROMTHEGLOBALFAMILYOFFICE

STUDY

22THEHEARTANDCOREOFTHEFAMILYOFFICESITS

WITHTHEFAMILY

22GOVERNANCEASAVEHICLEFORCLARITYAND

COMPLIANCE

23STATISTICS

24FAMILYOFFICESAREONAMISSIONTODIVERSIFY,

PRESERVEWEALTH,EDUCATETHENEXT

GENERATION,ANDPROFESSIONALIZE

24HOWMUCHISJUSTNOISE?

25GEN2ISLARGEANDINCHARGE

26WHATTHENUMBERSSAY:ASNAPSHOTOF

FAMILYOFFICESTODAY

26FAMILYOFFICESTRUCTURE

26Typesoffamilyoffice

27THEEVOLVINGPURPOSEOFFAMILYOFFICES

27Purposeofthefamilyofficeattime

offoundation

28FAMILYOFFICECLIENTS

28Breadthofthefamilyofficeclientbase

29THEFAMILYNETWORKSSERVEDBYFAMILY

OFFICES

29Averagenumberoffamilymembersserved

bythefamilyoffices

29IN-HOUSEVERSUSOUTSOURCEDSERVICES

30

Familyofficeservices(managedin-housevs.

outsourced)

30

WHENSCALEDRIVESOUTSOURCINGCHOICES

31

OutsourcedFamilyOfficeServicesbysizeofthefamilyoffice

31

AREASINWHICHFAMILYOFFICESWORK

WITHEXTERNALSERVICEPROVIDERSTO

COMPLEMENTTHEFAMILYOFFICEACTIVITIES

32

Areasinwhichfamilyofficesworkwithexternalserviceproviders

32ASSETALLOCATION

32Assetallocationofthefamilyoffices,byassetclass

33GOVERNANCEANDSTRATEGY

33INVESTMENTREPORTS

34Frequencyofinvestmentreportingtothe

family/clients

34IPSANDINVESTMENTCOMMITTEES

34Prevalenceofinvestmentpolicystatements

(IPS)infamilyoffices

34Prevalenceofaninvestmentcommitteein

familyoffices

35OVERSIGHTOFINVESTMENTDECISIONS

35Compositionofinvestmentcommitteesin

familyoffices

36FAMILYOFFICETALENTMANAGEMENT

36Numberoffulltimeemployees(FTEs)by

familyoffice

36INCENTIVEPLANS

37Incentiveplansforfamilyofficeexecutives

37LEARNINGANDOUTLOOK

38Reflectionontheoveralldegreeof

sophisticationofthefamilyofficesacrossa

rangeofdimensions

39LESSONSLEARNEDBYFAMILYOFFICES

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41

INTERVIEWSWITHFAMILYOFFICELEADERS

42AFAMILY-FIRSTPERSPECTIVEONTHEEVOLVING

AGENDAOFFAMILYOFFICES

42THE9FAMILYOFFICEIDENTITIES

431.EMBEDDEDFAMILYOFFICE

431.1Thefamilyofficeasa“strategycouncil”

442.ADMINISTRATIVE&COMPLIANCE

FAMILYOFFICE

442.1Thefamilyofficeasa“familytreasury”

453.INVESTMENTFAMILYOFFICE

453.1Thefamilyofficeasan“investmentbuffet”

453.2Thefamilyofficeasan“investment

platform”

463.3Thefamilyofficeasan“investmentdepot”

474.FOUNDER’SFAMILYOFFICE

474.1Thefamilyofficeasan“ecosystembuilder”

474.2Thefamilyofficeasa“filter”

485.FAMILYBUSINESSFAMILYOFFICE

485.1Thefamilyofficeasan“owner’soffice”

495.2Thefamilyofficeasa“warchest”

495.3Thefamilyofficeasa“safehaven”

50

6.PHILANTHROPICFAMILYOFFICE

50

6.1Thefamilyofficeasa“non-profit/for

profithybrid”

51

7.FAMILYCOHESIONOFFICE

51

7.1Thefamilyofficeasa“l(fā)earninglab”

51

7.2Thefamilyofficeasan“umbrella”

528.VIRTUALOROUTSOURCEDFAMILY

OFFICE

528.1Thefamilyofficeasa“simplifier”

539.MULTI-GENERATIONALFAMILY

OFFICE

539.1Thefamilyofficeasa“neuralnetwork”

549.2Thefamilyofficeasan“onboardingclub”

55CONCLUSION:THEVALUEOF

EMERGINGIDENTITIES

6|GlobalFamilyOfficeReport

56THEEVOLUTIONOFFAMILYOFFICES

56PATTERNSOFCHANGE

57FAMILYOFFICEEVOLUTIONINACTION

60

AFLEXIBLESUCCESSIONMODEL

60

RE-IMAGININGTHEFAMILYOFFICE

60

POSITIONINGFAMILYOFFICESFORTHEFUTURE

63

DEEPDIVEINTOSELECTEDTRENDS

64NAVIGATINGTHENEWLANDSCAPE

6413EMERGINGTRENDS

66ANEXPERTVIEWONEMERGINGTRENDS

67DEEPDIVEINTODIGITALTRANSFORMATIONAND

DATA-DRIVENSTRATEGY

67Digitalizingfamilyofficesthrough5buildingblocks

70

DEEPDIVEINTORISINGREGULATORYDEMANDS

70

Self-regulationofthefamilyofficeindustry

73DEEPDIVEINTOHYBRIDANDEVOLVING

OPERATINGMODELS

73Theemergenceofthehybridfamilyoffice

andwhyafamilyofficeisnotan“office”

76DEEPDIVEINTOTHEACCELERATIONOFESGAND

IMPACTINVESTING

76Legacybuilding:howbusinessfamiliesshape

theworldthroughstrategicadvantages

79DEEPDIVEINTOPURPOSE-LEDANDCOHESIVE

FAMILYSTRATEGY

79Moderntrendsforeffectivefamily

philanthropythroughfamilyoffices

83DEEPDIVEINTOTHERISEOFGLOBALFAMILY

OFFICEECOSYSTEMS

83FamilyofficetrendsacrosstheAmericas

90

DEEPDIVEINTOTHEMASSIVE

INTERGENERATIONALWEALTHTRANSFER

90

Collidingforcesintheworldoffamily

offices:growthandnextgentransference

95DEEPDIVEINTOINCREASEDTRANSPARENCYAND

PUBLICVISIBILITY

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95Afootinbothworlds:rethinkingfamily

officepurposeinanageoftransparency

98CONCLUSION

99ABOUTTHEAUTHORS

100

ACKNOWLEDGEMENTS

100

Guestcontributions

101

ECOSYSTEMPARTNERSFORTHE

RESEARCHPROJECT

102ABOUTIMDANDFBN

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GlobalFamilyOfficeReport|9

INTRODUCTION

Overthepasttwodecades,fami丨yofficeshavetransitionedfrom

discreet,c丨ose-knitentitiestopowerfu丨p丨atformsattheheartofthemodernfami丨yenterpriseecosystem.

Asmorefamiliesseektoprofessionalizetheirwealthmanagement,preservetheirlegacy,andnavigateanincreasinglycomplexworld,thefamilyofficehasmovedfurtherintothespotlight.Yetformanyfamilies,theconceptremainscloudedbyambiguityanddominatedbytechnicaljargonandadvisor-centricnarratives.

FollowingthesuccessoftheFamilyOfficeNavigator,ahands-onbookdesignedtohelp

familiescreateandmanagehigh-performingfamilyoffices,werecognizedtheneedtogoonestepfurther.InpartnershipwiththeFamilyBusinessnetwork(FBN),IMDlauncheda

globalresearchinitiativeaimedatsheddinglightontherealities,challenges,andemergingpatternsshapingthefamilyofficelandscapetodayandourfindingsarepresentedtoyouinthisreport.BuildingonthefoundationoftheNavigator,wecombinerigorousqualitativeandquantitativeresearchwithinsightsfromleadingglobalexperts,owningfamilies,andseasonedfamilyofficers.

Theaimofthisreportisfourfold:todemystifytheroleandimpactoffamilyofficesina

globaleconomy,identifycommonandemergingpatternsinthewaythattheyoperate,learnfromreal-worldexamples,andprovidefamiliesandtheiradvisorswithpracticalguidance

toestablishandprofessionalizetheirfamilyofficeactivities.Weofferafamily-firstlensintocurrenttrendsandinnovationsandaddresstimelyquestionsaroundgovernance,investmentstrategies,generationaltransitions,migrationofwealth,andtheshiftingexpectationsof

familiesthemselves.

Whilethefamilyofficefieldisrapidlyexpanding,theknowledgeavailabletofamiliesislacking.Accesstogenuineinsightsandfirsthandstoriesisscarce,giventhediscreetnatureoffamilyoffices.Wehopethisreportwillserveasatrustedresource,helpingfamiliesmakeinformed

decisionsandshapeafamilyofficethatisfitforpurpose,groundedinuniquevalues,andpreparedforthefuture.

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FUNDAMENTALSOFTHEFAMILYOFFICE

Beforewegointothediscussionofthefindingsofourg丨oba丨fami丨yofficestudy,wewou丨d丨iketoprovidesomecontextandframing,

byintroducingcoreconceptsanddefinitionsaroundfami丨yoffices,fami丨yenterpriseecosystemsandtota丨fami丨ywea丨th.

Thefamilyoffice

“AFamilyEnterpriseEcosystemisadynamicandevolvingsystemthatincludesall

aspectsrelatedtoyourfamily,thebusinessesandotherassetsthatyourfamilyowns,thewayinwhichyougovernthefamily,ownership,businesses&wealth,aswellasyourroleinsocietyandimpactontheenvironment.”

Muchlikeacoralreef,afamilyenterpriseecosystemiscomplexandinterdependent.Itincludesfamilymembers,businesses,assets,philanthropicefforts,andserviceproviders-allofwhichareinfluencedbyexternalforcessuchaspolitical,economic,andregulatoryconditions.Notwoecosystemsarealike,whichmakesthedesignandfunctionofeachfamilyofficeinherently

unique.Thefamilyofficeservesasthecentralcoordinatingplatform,helpingtheecosystemremainhealthy,resilient,andaligned,managingandpreservingtotalfamilywealthacross

generations.

Forthepurposeofthisreport,wedefineafamilyofficeasfollows:

“Totalfamilywealthencompasseshuman,social,financial,reputational,intellectual,andotherformsofcapitalsuchasspiritualandemotionalcapital,representingtheoverall

wealthofafamilyenterpriseecosystembeyonditsfinancialmeans.”

Typesoffamilyoffice

HYBRID/VIRTUALFAMILYOFFICE

SINGLEFAMILYOFFICE(SFO)

MULTIFAMILYOFFICE(MFO)

“Afamilyofficeisaconstantlyevolvingorganization

dedicatedtooneormorewealthyfamilieswiththe

mandateofmanagingtheirhuman,social,andfinancialcapital,aswellasotheraffairsinthefamilyenterprise

ecosystem,withtheobjectiveofcontinuingthefamilyheritageforgenerationstocome.”

Today’sfamilyofficesarenolongermodest,back-officeoperations.Theyaresophisticated

organizationswithformalgovernance,robustinfrastructure,andcomplexinvestment

strategies.Whilepublicawarenessoffamilyofficeshasonlyrecentlybeguntogrow,themodelitselfisanythingbutnew.Familyofficeshaveexistedinvariousformsforcenturies,evolving

alongsidetheneedsandambitionsofwealthyfamilies.Whathaspushedthemintothe

spotlightinrecentyearsisaconvergenceofmacroeconomic,geopolitical,andgenerationalforces,eachpromptingatransformationinhowtheseofficesarestructured,whatthey

manage,andhowtheydefinesuccess.

Familyenterpriseecosystemandtotalfamilywealth

Astheroleoffamilyofficescontinuestoexpandandevolve,itbecomesincreasinglyimportanttogroundourunderstandinginclear,foundationalconcepts.Twosuchconceptsguidethelensthroughwhichweanalyzethepurposeandpotentialoffamilyoffices:theFamilyEnterprise

EcosystemandTotalFamilyWealth.Theseframeworksshapehowweviewsuccessinafamilyofficecontext,notmerelyintermsoffinancialreturns,butthroughholistic,intergenerationalstewardship.

Uberizationofthefamilyoffice!Anecosystem-typeapproach

wheretheneedsofthefamilyareservedbyanetworkofproviders,andwheretheydonotneedto

“own”everythingthemselves

Familyofficethathasbeensetupbyonefamilytotakecareoftheirspecificneeds

SFO

Startedby,andservesonefamily(oronebranchwithinawiderfamily)

Single“Multi”

FamilyOffice

Startedby,andserves

multiple(orall)branchesofawiderfamily

Afamilyofficethatissetuptosimultaneouslyservemultiple,typicallyunrelated,families

Closed,

Family-OwnedMFO

Startedbymultiplefamilies,servingtheirneeds,

exclusively

Independent,

CommercialMFO

Startedbyonefamily(or

professionals)whichevolvedtoservemultiplefamilies

Dependent,

CommercialMFO

Startedbyabank,lawyer,etc.toservemultiple

families

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STUDY

GlobalFamilyOfficeReport|15

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THEGLOBALFAMILYOFFICESTUDY

ABOUTTHISSTUDY

Theresearchwasorganizedaroundaconsistentthematicstructure,allowingustoexamineeachtopicareabothatscaleandindetail.Whilethesurveyofferedabroadsnapshotacrossgeographiesandsectors,theinterviewsenabledustoprobemoredeeplyintoindividual

experiencesandperspectives.

186

surveyresponses

fromfamilyprincipals

65

semi-structured60-minuteinterviewswithfamilyprincipals

Wewillfirstpresentsomeinsightsintothestudyparticipantsandtheirfamilyoffices,highlightsomeofthekeytakeawaysfromthestudybeforepresentingthequantitativeresultsfromthesurvey,followedbythequalitativeresultsfromtheinterviews.

ABOUTTHESTUDYPARTICIPANTS

ANDTHEIRFAMILYOFFICES

Location

ThestudyhadstrongEuropeanrepresentation(65%)butincludedresponsesfromsix

continents-Asia(13%),SouthAmerica(11%),NorthAmerica(3%),CentralAmerica(2%),Africa(2%),andtheMiddleEast(4%)-illustratingtheglobalreachoffamilyoffices.Locationchoicesoftenreflectablendofemotional,practical,andstrategicfactors.Over40%citedproximitytofamilyasthemainreason,emphasizingtheimportanceoftrustandaccessibility.Others

highlightedaccesstoinvestmentopportunitiesandfavorablelegalortaxenvironments,signalinggrowingprofessionalization.Overall,familyofficesareevolvingfromprivate,

relationship-basedentitiesintostrategicallypositionedinstitutionsbalancinglegacywithperformanceandresilience.

Disclaimer:Weacknowledgethedisproportionaterepresentation

fromEuropeandthereforeadvisereaderstointerprettheresultswiththisgeographicfocusinmind.

Locationofrespondents’familyoffices

Rolesofthesurveyrespondents

Participantsheldawiderangeofroleswithintheirfamilyoffices,reflectingthecomplexityanddiversityoffamilyenterprises.Wegroupedtheserolesintothreecategories:withinthefamilyoffice,withinthefamilybusiness,andacrossthebroaderfamilyenterpriseecosystem.Manyservedingovernanceorexecutivepositions-suchasboardmembers,chairs,CEOs,ManagingDirectors,orCIOs-whileotherswerefoundersorkeydecision-makers.Somealsoheld

distinctiveroleslikefamilycouncilchairs,impactofficers,orrepresentativesinexternallymanagedoffices.Notably,manyindividualsoccupiedmultipleroles-oftenfiveormore-highlightingtheoverlappinganddynamicnatureofmodernfamilyenterpriseleadership.

BOARDMEMBER

28%

HEADOFFAMILYOFFICE

15%

CHAIROFTHEBOARD

14%

C-LEVEL

EXECUTIVE

4%

OTHER

3%

GOVERNANCEROLE

13%

FOUNDER/UBO

8%

Rolesandresponsibilitiesoftherespondents

ASIA

13%

MIDDLE

EAST

4%

AFRICA

2%

EUROPE

65%

NORTH

AMERICA

3%

CENTRAL

SOUTH

AMERICA

11%

AMERICA

2%

GlobalFamilyOfficeReport|17

16|GlobalFamilyOfficeReport

Timeoffoundationofthefamilyoffice

Ourdatashowsthatthelast25yearshaveseenastronguptickinthecreationoffamily

offices.Thenumberoffamilyofficessurveyedthatwerefoundedbetween2000and2025ismorethandoublethenumberfoundedbetweentheearliestyearuntil2000.

140

120

100

80

60

40

20

0

18401860188019001920194019601980200020202040

Foundingyearofthefamilyoffice

Generation

Thefigureillustratesthegenerationaldistributionofrespondents,ledbysecond-generation(G2)members,whocompriseoverathirdofthesample,followedbythird-generation(G3)

participantsandanotablegroupoffounders(G1).Latergenerationswerealsorepresented—theoldestbeingthe11thgeneration—andonefamilycountedover1,000membersservedbyitsoffice,withanaverageof29familyclientsperoffice.Thisgenerationaldiversityreflectsawiderangeofperspectives,fromlegacyfounderstonext-generationstewards.

Percentageofrespondents(%)

35

30

25

20

15

10

5

0

G1

(founder)

G2G3G4G5G6G7G8+

Generation

Generationoftherespondentswithintheirfamilysystem

Familybusinessownership

Mostrespondentsbelongedtofamiliesthatstilloperatealegacybusinessownedorcontrolledbythefamily.Thefirmscomefromawidevarietyofindustries,spreadovertheprimary,

secondaryandtertiarysectors.

14%

No

86%

Yes

Familiesstillcontrollingtheirlegacybusinesses

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GLOBAL

SURVEY

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KEYTAKEAWAYSFROMTHEGLOBALFAMILYOFFICESTUDY

THEHEARTANDCOREOFTHEFAMILYOFFICESITS

WITHTHEFAMILY

Despitehiringanaverageofnineemployees,thefamilyofficesrepresentedinoursurveyarelargelyspearheadedbyfamily,runwithaconcentratedownershipstructure,andmanage

themajorityoffamilyservicesin-house.53%ofthefamilymemberssurveyedholdakey

leadershippositionintheirfamilyoffice,withlistedtitlesincludingManagingDirector,Chief

ExecutiveOfficer,ChiefFinancialOfficer,ChiefOperatingOfficer,andChiefInvestmentOfficer.

Alargenumberoffamilyofficesalsooffereducation(55%),professionaldevelopment(44%),physicalandpsychologicalsupport(41%),familyengagement(80%),familycommunication

(83%),andlifestyleandconcierge(67%)asin-houseservicestofamilymembers,whilethey

aremorelikelytooutsourcefunctionssuchastax,legal,trust,IT,andcomplianceservices

(57%).Thissuggeststhatwhileexternalprofessionalsareneededtohelpfamilyofficesremainsustainable,theheartandcoreofthefamilyofficeshouldsitwithinthehandsofthefamily,intheinterestoffamilylegacyandwealthpreservation.

Thefamiliesthattookpartinoursurveyseeminglyagree.Asfamilyofficesgrowinsize,they

begintobringmoreservicesin-house.While36%offamilyofficesbelowthe$501Mthresholdoutsourceinvestmentanalytics,justonequarteroffamilyofficesoverthe$1BNmarkhave

thisservicemanagedexternally.Similarly,familyofficeswithover$1BNinAUMarefarless

likelytooutsourceeducation(19%),physicalandpsychologicalsupport(25%),andfamily

cohesion(6%).Equally,theytendtomanageinvestmentanalytics(75%),tax,legal,trust,IT,andcompliance(81%),andstrategicassetallocation(94%)-entirelyin-house.

Asfamilyofficesincreaseinsizeandwealth,theybecomemoresophisticatedintermsoftheeducationalprogramsandfunctionstheyofferfamilymembers.Theyalsoremaindevoted

tooutsourcededucationalprogramstositalongsideinternalcurricula,emphasizingtheimportanceofcontinualandprofessionaldevelopment.

GOVERNANCEASAVEHICLEFORCLARITY

ANDCOMPLIANCE

Alsorisingwithassetsundermanagementistherobustnatureofafamilyoffice’sgovernancestructure,withfamiliesoverthe$1BNmarkmorelikelytohaveaninvestmentpolicystatement(50%)versusthosebeneaththe$501Mthreshold(38%).

Overall,however,itisinterestingtonotethatdespite86%ofthefamilyofficesrepresentedinoursurveystillbeingtiedtoalegacyfamilybusiness,theyareincrediblyrobustasstand-alonestructures,with74%statingtheirfamilybusinessandfamilyofficearemanagedindependentlyfromoneanother.53%alsoboastaninvestmentcommittee,ofwhich57%containexternal

membersand22%arerunexclusivelybyfamilymembers.

Thefamilyofficesrepresentedinoursurveypaintanoptimisticpictureoftheirgovernance

structures,with68%ofrespondentsagreeingthattheirfamilyofficegovernanceiseffectiveandprovidesnecessaryguidanceandoversight.Afurther58%felttheyhadclarityonhowitisembeddedintotheoverallgovernanceofthefamilyenterpriseecosystem.Thesamefamilyofficesregularlyprovideinvestmentreporting,with54%ofsurveyrespondentsofferingthisquarterlyand19%presentinganannualreport.

Whileonly10%citedgovernanceastheprimarypurposebehindestablishingtheirfamily

office,theformalizationofgovernancewaslistedasoneofthemajorchangesexpectedby

familyofficesinthefuture,inthehopeofcreatingasolidstructureandstrategy,furtherclarity,andcompliance.

Lastly,familyofficeoversightisacross-generationalaffair.Lookingatthethreemainaxesofcontrol–controlofoperations,controlofgovernanceandcontrolofownership–sharedcontrolamongstgenerationsisthenormratherthantheexception..

86%

offamilyofficessurveyed

stillmanagealegacyfamily

business

95%

ofrespondentshaveasinglefamilyoffice

3%

haveaclosed

multifamilyoffice,and

2%

haveanopen

multifamilyoffice

29%

setuptheirfamilyofficetodiversifytheirinvestments

29

averageoffamily

membersservedbythe

familyofficetoday

3

averageofgenerations

servedbythefamilyoffice

today

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FAMILYOFFICESAREONAMISSIONTODIVERSIFY,

PRESERVEWEALTH,EDUCATETHENEXTGENERATION,ANDPROFESSIONALIZE

Accordingtothefamilymemberssurveyed,diversification(29%),wealthpreservation(23%),nextgenerationeducation(10%),andgreatergovernanceandcompliance(10%)werethe

primarydriversbehindtheestablishmentoftheirfamilyoffices.

Wethenaskedwhetherthepurposeoftheirfamilyofficehadevolvedsincecreation,and

respondentswerealmostevenlysplitbetweenanunchangingpurposeandarenewedset

ofambitions.49%saidtheirfamilyofficepurposehadremainedthesamewhile51%noted

anevolutionarychange.Ofwhich,diversification(19%),nextgenerationengagementand

education(6%),andgovernance(5%)werethemostcommonadditionstotheirareaoffocus.

Thissupportsthehypothesisofthisreport,thattheworldisshiftingatarapidpace,andfamilyofficesneedtoevolveinordertostaycompetitiveinthechangingparameters.Familyofficesaredecentralizingrisk,investinginnewareas(notnecessarilyalternativeinclassbutnewfor

thefamily),andplacingahugefocusoneducatingandengagingthenextgenerationtoensurethefamilylegacyispreservedforgenerationstocome.

Throughourworkwithfamiliesandfromourqualitativeinterviewswithfamilymembers,we

haveseenamarkedincreaseandsophisticationofin-houseprograms,includingeverything

frommentorshipandnext-generationcoursestositevisitswithinthecommunityand

internshipswithinthefamilybusiness.Themostsophisticatedecosystemsarealsoboostingentrepreneurshipthroughstrategyworkshops,acceleratorprogramsforindividualfamily

businesses,andtailoredcommunicationstrategies-speakingtoavarietyofages,and

recognizingthatinmultigenerationalfamilies,familiescanoftengrowfasterthanthebusiness.

HOWMUCHISJUSTNOISE?

Familyofficeshavebeenpushedfurtherandfurtherintothespotlight,forreasonsboth

goodandbad.Thereisnowaglobalfascinationwiththesehighlyintricate,intimate,and

idiosyncraticstructures,andthenarrativethatsurroundsthemisnotalwaystobebelieved.

Forinstance,popularbeliefsuggeststhatfamilyofficesareinvestinginprivateequityandotheralternativeassetclassesenmasse,signalingamarkedincreaseinris