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Family business
Six lessons shaping the future of family offices
A family-first view of the transformations reshaping global family wealth, drawing insights from the IMD-FBN Family Office Report.
Rapid read:
- Family offices now invest in human, social, intellectual, and reputational capital alongside financial assets.
- Over half offer education and professional development, with a growing number providing physical and psychological support.
- Offices are becoming unifiers and catalysts for family legacy, helping families thrive across generations.
- The report demystifies the role of family offices, offering practical guidance and real-world examples for families and advisors.
Family offices are undergoing the most significant demographic, strategic, and socio-political transformation in their history. What was once a discreet mechanism for investment administration of a few families has now evolved into increasingly professional multidimensional platforms at the center of family strategy, talent development, governance, identity, and impact.
Drawing on insights from The Global Family Office Report, that I recently co-authored alongside Alexis du Roy de Blicquy, CEO of the Family Business Network, Anouk Lavoie , Research and Learning Manager at the Global Family Business Center, and Christine Gaucher , FBN Communities Director, I outline the six most meaningful shifts shaping the family office landscape today.
1 – From wealth protector to strategic partner for total family wealth
Family offices are expanding far beyond investment-focused mandates. Families now expect their office to support the development of human, social, intellectual, and reputational capital alongside financial capital. More than half of family offices report an intentional shift toward strengthening identity, cohesion, and long-term purpose.
This shift reflects a broader redefinition of total family wealth: family members increasingly seek education, professional development, well-being support, and structured pathways into leadership. Family councils and rising-generation programs are gaining prominence as families professionalize how they cultivate the next generation of stewards. The family office is no longer merely a vehicle for wealth – it is becoming the architect of a family’s long-term continuity.
“Professionalization also extends to talent.”
2 – Governance and professionalization are no longer optional
As family offices grow in scale and complexity, governance structures are struggling to keep up. Despite clear advances in institutionalization, major gaps remain, as nearly half of family offices still lack an Investment Policy Statement or a fully functioning investment committee. Few have clearly defined KPIs or robust risk-management frameworks.
At the same time, family offices are increasingly expected to operate at institutional standards, with transparent reporting, formalized decision rights, and integration with broader family enterprise governance. This tension between expectations and capabilities makes governance maturity one of the most urgent priorities for families today.
Professionalization also extends to talent. The rise of hybrid operating models – combining lean internal teams with outsourced specialists – reflects both the sophistication of modern family offices and the ongoing scarcity of qualified professionals.
Families are competing head-to-head with private equity firms and global investment houses for talent, offering structured compensation packages and long-term incentive plans.
Our survey data shows a strong desire among rising-generation members to play an active role in shaping both strategy and culture.
3 – The next generation is reshaping identity, governance, and investment strategy
The great wealth transfer is not a future scenario – it is happening now. With more generations involved in the family office, entering the investment committee, and influencing governance, the identity of many family offices is evolving rapidly.
Next-generation leaders bring new lenses: digital literacy, impact orientation, global outlook, entrepreneurial energy, and a comfort with collaboration and transparency.
Our survey data shows a strong desire among rising-generation members to play an active role in shaping both strategy and culture. Many family offices have responded by expanding educational programs, mentorship pathways, and rotational experiences, ensuring that new leaders are equipped not just with technical skills but with the mindset required to manage complex family dynamics and long-term stewardship.
4 – Investment strategy is becoming more sophisticated, but aspirations outpace reality
Family offices are recalibrating portfolios amid heightened uncertainty. Families anticipate increasing allocations to private equity, venture capital, and other liquid instruments, while traditional asset classes face continued pressure. Interest in alternative asset classes continues to grow as families seek diversification and resilience.
Yet despite these ambitions, current allocations remain conservative, heavily concentrated in legacy family businesses and real estate. This highlights the persistent gap between strategic aspirations and operational capacity. That said, the families that responded to our survey were predominantly (86%) still shareholders of their legacy family businesses, which overall represented more than a third of overall assets.
To broaden their portfolio of assets, families are implementing more structured investment governance, including formal investment committees, specialized analysts, outsourced CIO models, and clearer performance measurement frameworks.
This evolution reflects a more disciplined approach to risk management, underscoring the need for both strong governance and deep expertise as investment environments become more volatile.
Family offices are also becoming more interconnected through global ecosystems, peer networks, co-investment platforms, and industry gatherings. This marks a departure from the historically insular and private posture of many families.
5 – Family offices are becoming more visible, connected, and globally engaged
The once-invisible family office is stepping into the spotlight. Generational shifts, increased competition for talent and investment opportunities, and the need for collaboration have encouraged family offices to operate with greater public presence. Rising-generation leaders, shaped by the pandemic, global networks, and digital connectivity, are driving this shift with a desire to engage, learn, and partner with peers.
Family offices are also becoming more interconnected through global ecosystems, peer networks, co-investment platforms, and industry gatherings. This marks a departure from the historically insular and private posture of many families. Collaboration is no longer a luxury; it is becoming a strategic necessity.
Simultaneously, regulatory pressure, digital transparency, geopolitical instability, and reputational risk are reshaping the way family offices operate. With expanded entry points into the ecosystem, increased outsourcing, and more public visibility, families face new vulnerabilities. They are responding by investing in specialized advisors, intelligence services, digital security, and crisis preparedness.
6 – Family office identities are becoming clearer, more structured, and increasingly dynamic
The old saying “when you’ve seen one family office, you’ve seen one family office” is outdated. Our research reveals nine distinct and evolving family office identities, showing that family offices follow recognizable patterns rather than existing as entirely singular, incomparable structures. These identities provide families and advisors with practical frameworks, best practices, and clear do’s and don’ts to organize themselves more effectively. Most importantly, the study shows that family office identities do not remain fixed: they meander, shift, and adapt over time and across generations as family needs, priorities, and levels of complexity evolve. Leading families demonstrate how family offices transition between identities – sometimes inhabiting several at once – to stay aligned with purpose and responsive to the changing needs of their clients. Understanding and revisiting identity is therefore a critical capability for building resilient, future-ready family offices.
But organizational theory tells us that when variance is high, and change is faster than planning cycles, adaptation beats optimization every time.
Conclusion
Family offices are not static institutions; they are living systems that evolve in tandem with the families they serve. The most resilient family offices are those that intentionally adapt their identity, governance, talent, and investment frameworks to the realities of a fragmented world. By embracing a family-first mindset and a focus on total family wealth, families can strengthen continuity, elevate performance, and ensure their legacy for generations to come.
- Download the full report here
- Check out Family Office Navigator
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