Family offices are increasingly prioritising the engagement and education of the next generation, yet most still lack a clear, structured approach to succession planning, according to new data from Campden Wealth and AlTi Tiedemann Global.
Instilling a sense of purpose and financial literacy among next-gen members is vital to preserve and grow wealth across, but inconsistency among family offices’ approach is jeopardising this, the report found.
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The report noted that while 60 per cent of next-generation family members are invited to attend board meetings, only a small proportion are provided with structured development or educational pathways to prepare them for future leadership.
Drawing on insights from 146 family offices across North America, Europe, and Asia, the Family Office Operational Excellence Report examined emerging trends in services and strategy. The report found that of all the services added in the last two years, family engagement and education ranked highest, with 23 per cent of offices implementing these initiatives.
Other family-related services, such as governance transition planning and succession planning, also ranked in the top five, signalling a broader shift towards prioritising wealth transfer between generations, a much-needed strategy given education for the next generation was rated the least satisfactory of all services offered by family offices.
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The report found a stark difference in satisfaction levels between family insiders and external advisers. The education of heirs received much lower ratings from those outside the family.
Succession planning was the second-lowest area of satisfaction, revealing a broader failing among many family offices’ approach to generational offerings.
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The report did state that newer family offices often need time to build multigenerational services. In contrast, older offices, having developed their culture, governance and educational practices over decades, tend to demonstrate stronger capabilities in education.
The areas of family offices with the highest levels of satisfaction are those closely tied to investment, tax and the performance of employees.
Notably, staff dedication and their ability to manage complexity ranked fifth in satisfaction, affirming the central role of a capable team in maintaining office efficiency. Meanwhile, the range of investment options and overall performance ranked second and third, respectively—evidence that, financially, most family offices are well-positioned.
