Family offices have grown significantly in importance in recent years. But what exactly do they mean? Who are they and what needs do they meet? Generally speaking, family offices are entities that independently manage the assets of wealthy families, coordinating all the expertise required according to their needs.
“The spectrum of services offered, however, is very broad. It ranges from the secretarial services associated with the activities of a wealthy family to the accounting management of one or more structures, the monitoring of investments and transactions, concierge services and legal, tax or financial assistance,” explains 
Luxembourg, the pioneer
Throughout the world, the development of family offices has experienced sustained growth in recent years. According to the recent Family Office Insights Series study conducted by consultancy firm Deloitte Private, their number will rise from 6,130 in 2019 to 8,030 in 2024, an increase of 31%. Given the outlook for global family wealth, it is estimated that there will be 10,720 entities serving wealthy families in 2030. The report further estimates that total assets under management amount to $3.1trn, with projections of a 73% increase to $5.4trn dollars by 2030.
What is the situation in Luxembourg? “The country has been a pioneer in this area, being the first to introduce regulations governing the activity of multi-family offices in 2012. In this way, it has helped to institutionalise the profession,” says Rapallino. “From the outset, the aim was to put Luxembourg on the map, attract players and make itself visible to wealthy families looking for independent players who could help them manage their assets. The initiative has helped to strengthen Luxembourg's position as a European hub for wealth structuring. Since then, several other jurisdictions have followed suit, including Monaco and Dubai.”
Single and multi-family offices
A single family office is an entity dedicated to the needs of a single family, through the management of a holding company for example. These structures are not regulated. Multi-family offices, which require authorisation, develop a range of services to meet the needs of several fortunes. “These activities can be carried out by a variety of structures. These include entities regulated by the CSSF, such as pure player multi-family offices or banks, but also other regulated professions, such as lawyers, auditors or accountants,” continues Rapallino. The range of services directly provided by these entities will depend on their area of expertise. For their customers’ other needs, they will turn to other service providers. For example, a fiduciary may be able to provide accounting services directly. If it needs legal advice, it will have to call on the expertise of one or more lawyers to find legal advice.
Independence and customisation
“A pure player’s main task will be to bring together the skills and services required to meet its customers’ needs,” says Lafo’s chairman. By consolidating multidisciplinary expertise, it will be able to bring together a diversity of players while ensuring that its customer’s interests are protected. “In a complex world, the needs of families are increasingly wide-ranging and diverse. As well as providing support with asset allocation, we need to be able to organise the transfer of wealth and ensure it is preserved, by setting up suitable structures and overseeing their administration.”
“Through a family office, high net worth individuals want access to a wide range of talent, enabling them to implement personalised wealth management approaches with real guarantees of independence,” he adds. “Working on an open architecture basis, family offices are part of a network approach, with the aim of enabling their clients to benefit from investment or co-investment opportunities, in the form of club deals. This has been a strong trend in recent years.”
A question of means
These services obviously have a cost, to a greater or lesser extent. In order to look after its client’s interests, the family office must bring together a range of skills and develop substance. “The development of structures whose aim is to serve several clients means that resources can be pooled with other families,” says Rapallino. The main advantage of using a multi-family office is financial. They give families access to highly personalised services without having to set up their own teams. “The use of a single family office is only justified if you have substantial financial resources to ensure that the team set up can earn a living from the choices it makes. Whilst there are no absolute rules in this area, we generally set the level of wealth at which it becomes worthwhile at €500m,” concludes Rapallino.
In a world where financial complexity is constantly increasing, family offices are emerging as key partners for wealthy families. Changes in regulations, the rise of alternative investments and competition in the sector should help to strengthen their role, pushing them to innovate ever further to meet their clients’ expectations.
This article was written in French for the Wealth Management supplement to the April 2025 issue of Paperjam magazine, published on 26 March. The content is produced exclusively for the magazine. It is published on the site to contribute to the full Paperjam archive. Click on this link to subscribe to the magazine.
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