A rapidly growing sector, this historically low-profile component of wealth management—whether it involves single-family offices (SFOs) or multi-family offices (MFOs)—is now the center of attention.For new family offices—whose pioneering role in wealth management cannot be praised highly enough—the challenge is significant: achieving a certain level of visibility, if not legitimacy, even as the number of such entities and the creation of new structures continues to grow.
While discretion remains the order of the day for the more established players, particularly SFOs, it is clear that there is increasing attention on their ESG practices or their leading role in financing innovation through private equity.Still relatively low-profile but already in high demand, both long-standing and newer players are also increasingly the subject of in-depth studies on their investment outlooks and choices, effectively granting them a growing role as influencers.Growing DiversityThe first of these two is said to have been founded 140 years ago: the Rockefeller Family Office, which still exists today and now advises other families, was established by John D. Rockefeller Sr. in 1882. Various sources now agree that there are nearly 8,000 such entities worldwide. However, defining what constitutes a true family office remains complex. A certification label exists in France, and leading national and international associations (AFFO, Club MFO, LAFO, ENFO) are active, and accreditations sometimes exist (CSSF). But the criteria and data remain scattered or even inaccessible for many of them. A real challenge persists, due to their vast diversity: no two family offices are alike. Some focus their client base on prominent families, with, for example, a center of excellence in family governance. Others specialize in entrepreneurs, particularly those with wealth derived from highly innovative sectors (fintech, healthcare, etc.).
Family offices focused on ESG or impact investing have also emerged in recent years. Their trajectories and approaches to the business are often fascinating, inspiring, and incredibly pragmatic: you’ll find a selection of them in the Leaders section of the site, interviewed during our previous meetings, and others within the platform itself, exclusively for our premium subscribers.Issues of trust and relevanceUnderstanding and earning the trust of these players is no easy task. Family offices have a natural inclination toward discretion, are extremely selective, and are in no way swayed by commissions, generally operating on a fee-only basis with their clients. Their entrepreneurial spirit, their commitment to social responsibility, and their investment potential make them indispensable partners.
Many of them, for example, invest alongside their clients. Their practices and recommendations thus shape the future of the sector, where values of independence, agility, and innovation are championed by seasoned experts with highly advanced skills in structuring, investments, and, of course, taxation. Extreme personalization, a keen and constant eye on trends, a strong affinity for private equity, and high ESG standards: these are the new generation of private bankers, poised to transform the world of wealth management for years to come.
To support these exciting players, the Family Office & Asset Management Forum is held every March in Luxembourg. This major, highly attended conference is an opportunity for them to connect with peers—SFOs and MFOs from several countries (France, Luxembourg, Belgium, Germany, etc.)—to discuss and exchange best practices, as well as their vision for the profession. An essential event, and always highly informative.
