The Family Office

The first official family office, however, was established much later than in ancient Rome – around 1882, when the Rockefeller family created what is widely recognised as the first single-family office. Many other major industrial families soon followed suit, establishing their own family offices. The 1990s saw another significant boom in the establishment of family offices, with yet another surge during the dot-com era of the 2000s.

The Number of Family Offices is Rising

Today, the number of family offices continues to grow globally. Between 2017 and 2019 alone, the number of family offices in Singapore increased fivefold, with 400 new family offices opening there in 2020. Singapore is a popular location for family offices due to its political stability, tax advantages, high level of education, and concentration of banking and finance talent.

In Denmark, it is estimated that there are around 50 family offices managing investable wealth in excess of DKK 1 billion. In addition, there is a large number of smaller family offices, as well as professional multi-family offices.

Each Family Office is Unique

There is significant variation among family offices, which are typically established to manage wealth and handle legal, tax, and occasionally succession-related matters. Differences between family offices are often seen in their level of maturity and, naturally, the specific needs of the family. Some serve purely as wealth managers, while others operate at the other end of the spectrum, with over 150 employees managing everything from daily household needs (travel, events, housekeeping, etc.) to the development of the next generation, philanthropy, experiences, communications/PR, and of course, wealth development and banking.

Functions of the Family Office

There is a growing trend towards family offices needing to offer a wide range of services that cater to the varying needs of multiple generations, including:

  • Digital transformation of the family office and its data processes
  • Strategic ownership advisory and development
  • Constructive problem-solving
  • Guidance on strategic philanthropy
  • Advisory regarding the roles and perspectives of spouses/partners on family wealth
  • Guidance on social media behaviour and cybersecurity
  • Recipient-focused written and verbal communication
  • Identification of each family member’s potential contribution to ownership
  • Motivation, talent programmes, and general development of the next generation
  • Mediation and conflict management within the family
  • Managing roles for stepchildren and ex-spouses

It takes significant insight for a family office to keep pace with the times, with market fluctuations, global economic and political shifts, and the evolving needs, interests, and dynamics of the family. As the saying goes: “If you’ve seen one family office… you’ve seen one family office.” There is no universal template for creating or developing the right structure for any given family.

The leap from a majordomo coordinating household staff to a modern family office managing cybersecurity is substantial. Yet, at its core, the family office still serves the family’s need for clear direction, oversight, reassurance, and safeguarding of both the wealth and the family itself.