At a certain wealth level, the infrastructure that serves most investors stops being adequate. The private banker who handles your accounts also handles hundreds of others. The tax accountant prepares your returns but doesn’t coordinate with your estate attorney. Nobody sees the complete picture—except perhaps you, and you have other things to do.This is the problem family offices solve. A true family office represents something specific: a private organization dedicated entirely to managing the financial and personal affairs of one wealthy family or a small group of families.

Family Office Definition: What It Actually Means

A family office is a private wealth management advisory firm that serves ultra-high-net-worth individuals and families. Unlike traditional wealth management—where you’re one client among many—a family office provides comprehensive, coordinated services tailored specifically to one family’s situation.

According to Campden Wealth research, approximately 10,000 family offices operate globally, managing an estimated $6 trillion in assets.

Types of Family Offices

Single Family Office (SFO)

A single family office serves exclusively one family. Running a fully-staffed SFO costs $1-5 million annually at minimum. Most wealth advisors suggest families need $250 million to $500 million in investable assets before a single family office makes economic sense.

Multi-Family Office (MFO)

Multi-family offices serve multiple wealthy families, sharing infrastructure costs while providing family-office-level service. Entry points typically start around $10-50 million in investable assets. Fees range from 0.5% to 1.5% of assets under management.

Prominent MFOs include Bessemer Trust, Pitcairn, and Pathstone.

Virtual Family Office

Virtual family offices coordinate external specialists rather than employing staff directly. This model works for families with $25-100 million who need coordination but can’t justify full family office infrastructure.

What Does a Family Office Do?

Investment Management

Setting investment policy, selecting managers, evaluating alternative investments, managing concentrated positions, and coordinating investments across generations.

Tax Planning and Compliance

Income tax planning, gift and estate tax strategies, generation-skipping transfer planning, and international tax compliance.

Estate and Succession Planning

Trust design and administration, family governance frameworks, next-generation education, and business succession planning.

Philanthropy

Managing private foundations, donor-advised funds, and direct charitable giving.

Lifestyle and Concierge Services

Managing household staff, property maintenance, travel, insurance, and personal administration.

Do You Need a Family Office?

Asset Level — Below $25 million, traditional wealth management typically suffices. Between $25-100 million, virtual family offices or MFOs offer appropriate solutions. Above $250-500 million, single family office economics start working.

Complexity — Families with operating businesses, significant real estate, international assets, or complex ownership structures benefit more from family office coordination.

Multi-Generational Scope — If wealth will transfer across generations, family office coordination adds substantial value.

The Family Office Landscape in 2025

Direct Investing — According to UBS Global Family Office Report, over 70% of family offices now make direct private equity investments.

Impact and ESG Focus — Next-generation family members increasingly prioritize sustainable and impact investing.

Generational Transition — The largest intergenerational wealth transfer in history is underway.

The Bottom Line

Family offices represent the institutional approach to personal wealth. They provide coordination, customization, and comprehensive service that general-purpose wealth management cannot match—for families with sufficient complexity and scale to justify the structure.

Related: What Is a Hedge Fund? | Hamptons Real Estate Investment Guide