Family Offices Expand Beyond the Ultra-Rich, New Data Shows

The traditionally exclusive world of family offices – private wealth management structures – is opening up to a wider range of affluent families and entrepreneurs, according to recent findings.

What was once reserved for billionaires and established dynasties is now being reimagined for those with significantly smaller fortunes, driven by technological advancements and evolving financial needs. A global survey by Julius Baer and PwC, encompassing 2,485 wealth management and family office experts across Europe, Asia, the Middle East, and Latin America, revealed that 41% of ultra-high-net-worth individuals cited cost as the primary obstacle to establishing a single-family office, followed by perceived complexity and concerns about insufficient wealth. However, experts say these concerns are often unfounded.

“The idea that one must have billions to justify a family office is rooted in outdated thinking,” stated María Eugenia Mosquera, Head of Wealth Planning Key Clients & Family Office Services at Julius Baer, in a recent analysis. The rise of “virtual family offices” (VFOs) – leveraging digital platforms and remote teams – is making these services more accessible, allowing families to maintain strategic control without the substantial overhead of traditional structures. Families are increasingly adopting hybrid models, outsourcing specialized areas like legal and investment advisory while retaining control over core values like philanthropy and governance. For those considering this path, understanding family office services can be a crucial first step.

Experts recommend a phased approach, starting small and evolving as needs change, and emphasize the importance of aligning the office’s structure with the family’s unique values and long-term goals. Choosing the right jurisdiction – Switzerland, Singapore, Hong Kong, and Dubai remain popular hubs – is also critical, though many families are now operating virtually across borders. This trend reflects a broader shift in wealth management, as more individuals seek to proactively manage and preserve their legacies. You can learn more about the evolving landscape of wealth management at PwC’s Family Office Services page.

Officials at Julius Baer indicated they expect continued growth in the adoption of family office models across a broader spectrum of wealth holders, as awareness increases and technology continues to lower barriers to entry.