Why Families Create Family Offices

From Wealth Event to Long-Term Stewardship

Most family offices emerge after a liquidity or concentration event — the sale of a business, a generational inheritance, or the accumulation of substantial assets.

However, wealth alone is not the trigger. Complexity is.

Common Catalysts

Families typically create a family office when they face:

• Multiple asset classes and jurisdictions
• Increasing tax and reporting complexity
• Governance challenges among family members
• The need to professionalize decision-making

The family office becomes a response to coordination risk, not market risk.

From Preservation to Purpose

Over time, motivations evolve:

• First generation: capital preservation and control
• Second generation: structure and risk management
• Third generation: continuity, purpose, and alignment

A family office enables families to move from wealth management to capital stewardship.