Deloitte Private recently released their Family Office Insights Series – Global Edition, casting light on the top 10 trends shaping the Family Office space in 2024. This report draws from a survey of 354 Single Family Offices globally, pinpointing the primary concerns and trends dominating their focus.

A notable theme of the report is the move towards greater professionalisation within Family Offices. This shift responds to the growing need for specialised knowledge and the complex demands of managing significant wealth. Here are our main points regarding human resources, based on the report:

  • Professional growth and hiring trends: 40% of Family Offices intend to increase their staffing this year, leaning towards engaging non-family professionals. Currently, 35% of Family Office heads are non-family professionals, a figure expected to rise to 49% post-succession.
  • Sourcing talent from financial sectors: Financial services lead as the top source for talent, followed by accounting and consulting firms, and other Family Offices. The emphasis is on financial expertise and investment management skills to effectively handle complex portfolios.
  • Evolving in-house teams: Family Offices are expanding their in-house teams as their assets under management (AUM) grow and their service offerings expand. Larger offices are hiring more actively than their smaller counterparts to manage increased complexity and portfolio size.
  • Recruitment of external professionals: There is a growing trend towards replacing family members with external professional managers. As it stands , two-thirds of Family Office heads are family members. However, a significant change is anticipated. This trend is most evident in North America, where an anticipated 73% of Family Office heads are expected to be recruited from outside the family circle.
  • Challenges in recruitment and retention: Recruitment and retention of talent are identified as core risks in the report, with young talent often gravitating towards larger, well-known firms. Family Offices should address this by promoting their unique cultures, substantial asset bases and the exposure they offer within smaller teams.
  • Outsourcing for specialised expertise: Given the average Family Office manages $2 billion in AUM with only 15 staff members, over a third are increasingly relying on third-party service providers to scale their initiatives and gain specialised expertise.

The report highlights crucial points, especially on hiring non-family professionals. From our experience, we know that families often prefer to hire from within their circles.  While it is understandable that they would want to have someone they trust to be in a key position, putting their exceptional wealth and sensitive matters into the hands of a person who may not be as competent will put the office and family at risk. Non-family professionals bring specialised skills in investment management, tax planning and legal services, which are essential for managing complex assets.

As Family Offices prepare for future transitions, these professionals ensure continuity, stability and potentially improved investment outcomes. Professional management can also lead to better investment performance and strategic decision-making, as highlighted by the experience of offices that have already shifted towards this model.

Agreus specialises exclusively in the Family Office sector. Recognised as a leading expert, we offer tailored recruitment and compensation consulting services globally.  We're here to support Family Offices in finding and hiring experienced professionals to maintain seamless operations.  For more details on how we can help, please get in touch.