Many business families are considering if establishing a family office is right for them. As wealth grows, business owners are discovering how a family office can provide the structure, governance, expertise and insight to help co-ordinate and manage their financial affairs outside the main operating company, while realising their financial and family-related goals and providing long term continuity across generations.
A family office is created by a family (or families) to serve their financial and personal needs. Given their bespoke nature, a family office can take many different forms and do many different things. Factors such as family size and dynamics, value and complexity of assets, financial priorities and lifestyle needs can all determine what form a family office should take and what services it should provide.
Catalysts for establishing a family office
To help the family reach a shared understanding of the mission of its family office, the first step is to clarify the goals and the problem the family is trying to solve:
- Has there been a significant increase in the complexity, diversity or size of your family’s financial wealth?
- Has the family grown in size and preparing for continuity across generations?
- Is the family bringing external investors/ partners into their operating companies?
- Would some family members like to focus on new business opportunities outside the main business?
- Do you want to formalise your family’s approach to family governance, managing distributions, investments or philanthropy?
- Could your family benefit from centralised administrative services?
Advantages of a family office
Families that we work with often attest to the benefits that establishing a private office can have. It allows many areas of your business and financial life to be managed through a centralised, efficient structure. This can enable economies of scale and skilful co-ordination to optimise wealth management opportunities and diversify beyond the core business to protect and preserve long-term family wealth.
As the name indicates, a family office also provides a structured, fully governed way for the needs and interests of family members across generations to be taken into account. Many families – especially as they grow, move around the world and acquire different interests and priorities – view the office as an essential platform for inclusive communication and decision-making. This can be especially valuable to have in place when handing down the business and other assets.
By offering a range of support services, a family office also frees you to focus on running your business and building its value, while knowing that your personal wealth structuring is working just as hard for you. At the same time, business management and personal wealth management can be clearly separated, with the family office offering strong governance to assure transparent delineation.
Types of family office
There is a full spectrum of family office structures, ranging from smaller, fully outsourced operations to complex, regulated entities. Like the family business, the family office can be structured with clear governance in terms of which family members have control, input, oversight, and the processes and reporting for decision-making.
Three structures that we typically see are:
- Embedded Family Office
Here, the family office is embedded into the operating business. There’s no need to set up a new entity and existing operational infrastructure can be used to run the office. Some services may still need to be outsourced and it’s vital to consider what happens if the business is sold or if external investors are sought. - Single Family Office (SFO)
This is established and resourced to serve the needs of one family. A SFO offers the highest degree of privacy, flexibility and an in-house team dedicated to supporting your needs. Clearly, this highly bespoke approach can mean increased operational costs, but a well-run SFO can also attract top talent. - Multi Family Office
This is set up to manage the wealth of multiple families and may even include non-family members as clients. Economies of scale can reduce the cost of services. A larger pool of assets can increase access to investment opportunities or investment talent. However, set against this is the potential for less family control, involvement and privacy.
Considering the rising generation
When you are deciding which structure is right for your needs, remember that the right family office today may look very different in the future. It is likely to evolve over time, especially as younger generations take on leadership and decision-making roles.
A structure that has the flexibility to support this generational evolution is key. With the right arrangement, you can ensure the optimal balance between continuity and change, and between centralised efficiency and range. This allows each family member, wherever they are, to have their needs serviced and their voice heard.
Scope of family office services
How can we help
Drawing on insights and lessons learned from working with global families over many years, J.P. Morgan recognises that growing a business is ultimately about building something that endures for generations. We can support your family office and personal wealth management needs. For more, read our J.P. Morgan Family Office 2026 Report. We would be delighted to share further insights informed by our long-standing work with families.