Fewer than half of family offices have a clear measure of success

Fewer than half of family offices have a clear measure of what success looks like, according to a report published by IMD Business School and the Family Business Network (FBN).

Only 42 per cent of the family office leaders surveyed by IMD and FBN either agreed or strongly agreed that they had established a well-defined measure of success for their work. Meanwhile, 30 per cent of respondents either disagreed or strongly disagreed that their success was well-defined, and 28 per cent gave a neutral response.

IMD Business School is a Swiss-based business school, and FBN is an organisation that provides resources for family businesses and offices, as well as connecting them to help them learn from one another.

[See also: The best family office advisers]

While only a minority of family office leaders surveyed agreed that they had a well-defined measure of success, they were more positive about other related topics. Seventy-five per cent of family office leaders agreed that their purpose was aligned with the family’s vision. Likewise, 71 per cent of respondents felt their family office’s governance was effective and provided the necessary guidance to operate well.

A smaller majority of family office leaders agreed that they had the necessary infrastructure and talent, such as IT systems and skilled staff, to operate their business efficiently, with 56 per cent of respondents supporting this. Fifty-eight per cent agreed that they regularly reviewed their family office’s performance and ensured it aligned with the family’s values.

The most common incentive to establish a family office was to diversify wealth, according to the report, with 29 per cent of respondents citing this as their primary focus. Twenty-three per cent said wealth preservation was at the forefront of their work, while 10 per cent were primarily focused on educating the next generation of their family.

[See also: Metro Bank co-founder reveals name of new family office lender]

Content from our partners

The report also revealed a generational shift in family office governance. The majority of family offices are presided over by second- and third-generation family members. Second-generation leaders make up the largest group, with 35 per cent of family offices led by children of the founder, and nearly 25 per cent led by third-generation family members.

Conversely, first-generation family office leaders, or founders, made up 15 per cent of respondents.

The smallest group of respondents were family office principals from the eighth generation and beyond, making up fewer than one per cent of the overall pool.

This aligns with data showing that most of the family offices surveyed were founded in the last 25 years. In fact, the number of family offices founded between 2000 and 2025 was more than double the number founded between 1840 and 2000.

The average number of family clients served by the offices surveyed was 29, suggesting it is common for them to cater to more than just an immediate family unit. One family office surveyed counted over 1,000 members, which may have skewed the average slightly, given that the survey received responses from 186 principals.

It should be noted that while this survey was internationally focused, 65 per cent of respondents were from European family offices. By contrast, only 3 per cent of respondents were in North America, the continent with the most family offices globally, according to a 2024 report from Deloitte.

[See also: AI simulation set to take wealth managers and family offices from the ‘age of guessing’ to the ‘era of knowing’]