The Family Office Industry Supports the Evolving Family Enterprise

Abstract

The dramatic growth of the family office industry in the 1980s was sparked by new liquidity running through hundreds of business-owning families. In an effort to preserve and expand their wealth, they needed a professional financial office so they could focus on broadening their business endeavors or living unencumbered lives. Over the past 40 years, the family office industry has expanded into much more than an entity to preserve family wealth; rather, it acts as a vehicle for investment diversification, risk management, and next-generation engagement, along with opportunities for impact. This article maps changes over the past four decades, and nine themes emerge about what will create opportunities and challenges for enterprising families and their family offices.