Family Offices: Reshaping the Future of Wealth Management

May 23rd, 2025

Estimated Reading Time: 6 Minutes

Family offices have traditionally operated in the background, but in recent years, they’ve emerged as a prominent force in the financial world. In September 2024, $3.1 Trillion in assets was managed by over 8,000 family offices. This number is projected to grow to a staggering $9.5 trillion in assets by 2030. That kind of growth signals a fundamental shift in how ultra-high-net-worth individuals approach their money.

This evolution includes the shift away from traditional cookie-cutter portfolios to investing in more complex strategies involving private markets, direct investments, and alternatives. As families build more sophisticated portfolios, they’re increasingly relying on wealth advisors to serve as their Chief Investment Officers. High-net-worth families are competing for top advisory talent that can deliver deeply personalized service, and their growing influence is changing what many ultra-high-net-worth individuals expect from a wealth management team.

A Private Wealth Engine, Built for One

Family offices are highly customized organizations built to manage the financial and personal affairs of wealthy families. Treating the family's wealth as a business, they handle everything from investment oversight and tax strategy to estate planning and philanthropy. Some family offices serve just one family (known as single-family offices), while others provide services to multiple families in a more cost-efficient model (multi-family offices).

While family offices have existed historically, today they’re experiencing a modern resurgence. As more families generate greater wealth, the need for a dedicated, private structure has become stronger. The number of family offices in 2030 is expected to be 75% more than the number in 2019. The family office structure is growing to become the preferred model for a number of ultra-wealthy households globally.

Why Family Offices Are Growing So Fast

Several forces are fueling the rise of family offices. A significant one is the massive creation of wealth over the last two decades, in sectors including tech, finance, and private equity. This wealth has been concentrated, requiring ultra-high-net-worth individuals to take a comprehensive, more personalized approach to wealth management. Entrepreneurs and executives who experience large liquidity events often turn to the family office model as a way to work to retain control over their assets, optimize taxes, and build a wealth foundation that can last for future generations. In this shift, the need for CFOs for family offices has increased, disrupting the traditional wealth management industry.

In addition to the wealth in growing sectors, we’re entering the largest wealth transfer in history. An estimated $84 trillion is expected to move from baby boomers to Gen X and millennials over the next two decades. Instead of following the traditional wealth management playbook — beneficiaries want modern solutions, greater transparency, and access to sophisticated investment opportunities.

A New Approach to Investing

The most impactful shift in family office strategy is how they invest. While public equities and fixed income remain part of the mix, many family offices are adding in private equity and alternative investments. In addition to offering diversification, these complex investments can have barriers to entry and may require an advisor to research and design tailored strategies.

Family offices are uniquely positioned to take advantage of illiquid investments because they aren’t limited by the need for short-term liquidity. With longer investment horizons, they can participate in deals that may be impractical or riskier for traditional or individual investors.

Changing the Expectations Around Wealth Management

Many families who don’t yet have a dedicated family office are asking for a similar experience: deeper integration of tax planning, generational wealth strategies, and access to private investments — all delivered with a concierge-level service model. This has led to an industry-wide shift.

Traditional wealth management firms are expanding their capabilities to compete, offering services like access to alternative investments and CIO services. The line between conventional advisory services and family office offerings is beginning to blur — and that’s a good thing for clients who want more from their financial relationships.

What This Means for You

Wealth advisors are now building hybrid models that deliver the strategic sophistication and personalized care of a family office without requiring $100 million in assets.

If you’ve outgrown the limitations of standard portfolio management, are preparing for a liquidity event, planning for future generations, or simply want more control over how your wealth is deployed, it is time to consider a new approach. You may not need a full family office, but you might benefit from a team that thinks like one.

Looking Ahead

The rapid rise of family offices is more than a statistic — it’s a signal that the wealth management industry is evolving. Investors are demanding more nuanced, flexible, and customized solutions that reflect the complexity of their lives.

Whether you’re already working with an advisory team or exploring your options, it’s worth asking: Is your current strategy built to last for the next generation?

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