The evolution of family offices toward increasingly professionalized management models is transforming the way these structures make decisions regarding investments, governance, and wealth planning. This is the conclusion of a new global study conducted by Ocorian, an international provider of services to asset managers and asset owners, including private clients, fund administration, capital markets, and corporate and regulatory solutions.
The research, based on responses from members of entrepreneurial families and senior family office executives responsible for a combined $119.37 billion in assets, reveals a significant shift in internal leadership models.
Today, nearly half (47%) report that an investment committee has the final say on major investment decisions or wealth structures, compared with just 6% who still leave this responsibility to the family founder. In addition, 39% say decision-making authority rests with members of the next generation, while 6% delegate this role to external advisors and 3% to family councils or boards of directors.
The report also reveals a unanimous consensus: all surveyed family offices believe their organizations have become more professional over the past year and have implemented significant changes to achieve that goal.
Among the most common initiatives is the development of a more diversified and professionally managed investment portfolio (54%), as well as greater use of specialized external advisors (51%).
Meanwhile, 46% report having strengthened their compliance, tax, and legal infrastructure, while the same percentage have advanced the development of more robust succession plans.
Other measures aimed at strengthening these organizations include the creation of more cohesive philanthropic programs (42%) and the enhancement of management teams responsible for overseeing the family office (41%).
In terms of governance, the study shows a clear consolidation of formal mechanisms. Sixty-five percent of family offices now have an investment committee that includes independent members, while 60% have established an advisory board for the next generation.
More than half (56%) have created a formal risk committee, and 54% have independent external trustees or a board of directors. In addition, 35% have established a family council, and 18% have adopted a formal family constitution or charter.
Despite these advances, the sector continues to face significant challenges, particularly in relation to the increasingly complex international regulatory environment.
Only 8% of respondents believe they are very well advised and fully prepared to meet current regulatory requirements. Most (74%) consider themselves to be in a reasonably strong position, while 18% rate their preparedness as average.
According to Dion Yee, Chief Commercial Officer at Ocorian, “Family office operations and management are undergoing an increasingly rapid process of professionalization, and many organizations have already introduced substantial changes to their governance structures and the way they make investment decisions.”
“Many are looking ahead and preparing for succession, and investment committees are progressively replacing founders in decision-making rather than automatically transferring that responsibility to the next generation. However, there is still work to be done, particularly given global regulatory requirements that continue to evolve and become more complex,” he adds.
Ocorian’s specialized family office division offers a comprehensive approach to helping families navigate the challenges and opportunities associated with wealth management. Its model is based on long-term personal relationships and a deep understanding of clients’ priorities.
Its core services include family office formation and administration, human resources support, luxury asset and lifestyle management, family governance advisory, residency and relocation services, as well as specialized support in immigration, visas, payroll, maritime and aviation crew management, and financial reporting.
