Family office management and family governance
KEY TAKEAWAYS
Shift in focus seen toward wealth management and investment management
Less emphasis in 2023 on fostering family unity and continuity
Preparing the next generation remains a top concern for many families
Insufficient leadership succession planning is widespread
Family offices’ primary focus has shifted toward wealth management (74%) and investment management (55%) at the expense of fostering family unity and continuity (21%).
Nevertheless, this tendency is much less pronounced for third generation families. Such families have weathered more storms and realize that they need to continue addressing critical issues even if others might appear more urgent for now.
More than half of families’ top concerns include preparing the next generation to be responsible wealth owners and ensuring shared family goals and vision, for which they need family office support.
Considering the professionalization of various functions, investment management was reported as seeing the most advances, family office professionalization beyond investing showing mixed results, and families themselves trailing behind.
Most concerning is the insufficiency of leadership succession planning for families and family offices alike, and the lack of educational programs for the next generation.
