Managing significant wealth across different asset classes, jurisdictions, and generations comes with a unique set of challenges.

For families with diverse holdings—investment portfolios, real estate, and private businesses—keeping everything tracked and analyzed can easily turn into a full-time job.

Here are just a few of the common hurdles high-net-worth families often face:

  • Assets being spread across various categories, including market investments, real estate, holding firms, private credit, private equity investments, and private business holdings
  • The complexity of vehicles like collectible and digital assets (nonfungible tokens), hedge funds, commodities, and others
  • Difficulty managing these assets efficiently and ensuring they all work together
  • A growing need for structure, clarity, strategic oversight, and in-depth understanding of investment exposure (including cross-border tax exposure) and risk in today’s complex financial environment

That’s where a family office comes in—it offers much more than standard investment advice.

A well-designed family office helps manage cross-border planning, consolidated reporting, charitable giving, and long-term governance across generations.

At Asena Advisors, we help you meet those challenges head-on. Here’s how you and your family can benefit:

  • Deep Understanding: We’re well-versed in the complexities of managing global assets. That experience is key to building a long-term, sustainable family office strategy.
  • Simplified Complexity: We help streamline your financial life by connecting all the moving parts and creating solutions that align with your family’s goals.
  • Structure and Clarity: We offer integrated oversight to keep your finances coordinated, monitored, and managed with purpose.
  • Specialized Expertise: At Asena Advisors, your family office is supported by a team of professionals in law, tax, finance, and estate planning, ready to support your evolving priorities every step of the way.

Understanding Family Offices: What Are Family Offices?

At a certain level of wealth, the cracks in traditional financial advisory models start to show.

Managing a family’s entire financial ecosystem—across different countries, asset classes, and time horizons—requires more coordination than any single advisor or standard firm can handle.

A family office is built specifically to manage this kind of complexity.

It is a private advisory entity designed to oversee the full spectrum of an ultra-high-net-worth individual or family’s financial affairs, including asset management, tax strategy, legal compliance, philanthropic planning, insurance, and succession governance.

What distinguishes a family office is how it’s funded and why it exists. Unlike hedge funds or pension vehicles, which serve outside investors, the family office is funded solely by the family itself.

Its core mission? To protect and grow existing wealth over the long term in accordance with the family’s objectives.

What Is the Legal Definition of a Family Office?

Legally, a family office refers to a private advisory firm that manages the comprehensive financial life of a single family.

Services often include investment oversight, legal structuring, tax planning, compliance, and day-to-day administration.

There is no single blueprint. Some families choose a lean, in-house team, while others build large-scale operations with specialized departments and robust infrastructure.

Ultimately, the structure is tailored to the family’s unique needs, goals, and preferences.

What Is Behind the Recent Rise in Family Offices?

Several structural shifts are contributing to the global growth of family offices. One major factor is the flexibility inherent in the model.

Unlike traditional investment funds that follow fixed investment cycles, family offices are built to operate over decades, often designed to manage and grow wealth across three or more generations.

Another driver is efficiency. With the rising cost of institutional investment services, such as the standard “2 and 20” hedge fund fee model, many families are realizing they can get more value through a self-managed structure.

The “2 and 20” setup refers to 2% of assets under management as the annual management fee and 20% of profits made by the fund above a predetermined target as the standard performance fee.

According to the Union Bank of Switzerland (UBS), the average global operating cost of a family office as of 2023 (the latest data available) is less than 0.4% (39.8 basis points) of assets under management, up from 38.1 bps in 2022.

There are also demographic and generational changes. Younger beneficiaries are inheriting wealth at an earlier age, often with a more global mindset. These shifts include cross-border investments, mergers, and ventures in emerging markets.

The next generation’s innovative mindset, driven by digital fluency and an openness to mergers and acquisitions, is helping family leaders stay resilient.

As wealth becomes more complex and mobile, the need for integrated, centralized management continues to grow.

Family offices are emerging as a preferred platform for addressing these demands, especially amid greater economic and geopolitical volatility.

The Many Disciplines of a Family Office: What Does a Family Office Do?

The strength of a family office lies in its capacity to coordinate multiple areas of expertise. Managing significant wealth isn’t something a single advisor—or a narrowly focused firm—can handle alone.

It takes a multidisciplinary team that can seamlessly integrate financial, legal, tax, and administrative strategies into one unified, forward-thinking plan.

Wealth Management and Legacy Planning

The core function of a family office is to manage and preserve capital across generations.

That means more than just investment management—it encompasses succession planning, estate structuring, and tax strategy, all guided by the family’s long-term objectives.

Effective wealth stewardship also requires anticipating changes in regulation, markets, and family circumstances.

Estate planning, in particular, introduces added complexity. Trusts, foundations, and business holdings can reshape how governance and control are structured.

At Asena Advisors, we bring together integrated teams to ensure everything is working in sync—legal frameworks, tax strategy, and your family’s priorities—so your legacy stays protected and aligned with your goals.

Lifestyle Management

Beyond financial matters, family offices often provide administrative support that enhances daily life.

Services may include personal security, household staff coordination, travel arrangements, and property management.

These functions help reduce operational burden and support lifestyle continuity.

Investment Management

A family office typically manages a diverse range of investment activities. This includes traditional asset classes, real estate acquisitions, private equity, venture capital placements, and hedge fund participation.

The investment strategy is tailored to the family’s objectives, liquidity needs, and risk tolerance.

Why Do You Need a Family Office?

When a family’s financial activities begin to resemble those of a corporate enterprise—covering tax planning, philanthropic efforts, entity management, and multigenerational strategy—a family office can offer a more practical approach.

Unlike traditional advisors who specialize in specific areas, this type of family business offers a comprehensive platform for taxes, estate planning, charitable giving, and governance.

By centralizing these functions, your family office helps reduce inefficiencies, mitigate risk, and create a cohesive strategy that aligns with your values and long-term goals.

Another consideration is direct investing, which is a common approach for many of our clients.

Here, families invest directly in private companies, real estate projects, or other private ventures, rather than relying on publicly traded stocks or bonds.

The goal is to provide the necessary capital to support the growth or development of these investments.

Family offices use a range of direct investment strategies, tailored to your specific goals and risk preferences:

  • Private Equity:
    This strategy focuses on investing in private equity (PE) funds, which target companies with high growth potential.
    A PE fund pools money from multiple investors, allowing an advisor to make collective investments over the long term.
    Family offices have increasingly directed their investments into private equity, moving away from other traditional assets like real estate, art, fixed income, and publicly traded equities.
    While many family offices take a passive approach to PE, investing through funds managed by sponsors, a recent cultural shift has led towards more active management of these investments in privately held companies.
    Because private equity is competitive and complex, many family offices now see direct management of these investments as a more cost-effective option that provides better control over assets.
  • Private Credit
    Private credit involves acting as a non-bank lender to small- and medium-sized businesses that typically don’t qualify for traditional financing.
    Family offices offer private loans that give smaller businesses access to capital they may not get from banks or conventional lenders.
    Loans from a private credit entity generally come with floating interest rates and are often tailored to meet the specific needs of both the borrower and the lender.
    Additionally, these loans may include covenants, which are terms that must be met by the borrower to protect the family office in case of a default.
    A clear benefit of the private credit avenue is that family offices have more opportunities for income-generating investments.
  • Hedge Funds
    In this strategy, the family office allocates capital to hedge funds that use a range of tactics to pursue returns.
    Unlike the personalized approach of a family office, hedge funds generally function on a much larger scale and focus on higher-risk investments.
    Hedge funds aim to outperform the market, often using aggressive strategies that differ from a family office’s measured approach.
    Hedge funds are also regulated by the Securities and Exchange Commission and must follow strict disclosure rules.
  • Real Estate
    Real estate investments may include commercial and residential properties, as well as real estate funds.
    These investments offer steady rental income, long-term growth potential, and more control over tangible assets.
    They also help diversify your portfolio, offer tax benefits, and can positively impact local communities.
    Your family office will handle the day-to-day management of all real estate holdings.
  • Fixed Income
    Fixed income strategies include investing in bonds or other fixed-income securities, offering stable returns and lower risk than stocks.
    These typically include debt securities issued by governments, municipalities, or corporations. These bonds offer regular interest payments and the return of principal when they mature.
    Family offices tailor their fixed income strategies based on duration, credit rating, and geographic focus to match specific investment goals.
    In reality, your family office will likely use a combination of these strategies to manage risk, diversify your holdings, and work toward your goals.
    No matter which path you take, Asena Advisors can help set up your family office to address every legal and tax concern that may arise.
    We’ll also collaborate with tax professionals and transactional attorneys to make sure every investment is structured properly, thoroughly vetted, and tax-efficient.

Benefits of the Family Office Approach

A family office does more than help ultra-wealthy families manage and grow their wealth in a structured way. It delivers value that goes far beyond financial returns.

  • Generational Continuity
    A family office helps address one of the most challenging aspects in wealth management: succession planning.
    Unlike basic estate planning tools, a well-designed office supports multiple branches of a family. It ensures that asset transfers happen smoothly and strategically.
    This approach minimizes conflicts and provides a flexible governance framework that can adapt as family dynamics evolve.
  • Privacy
    Centralized oversight offers a higher level of confidentiality.
    Instead of working with multiple providers who may lack a full understanding of their context, wealthy individuals with a family office work with a consistent team that understands their history and preferences.
    This kind of centralized oversight reduces exposure risks and makes it easier to manage sensitive transactions with discretion and confidence.
  • Legal and Tax Optimization
    Global families face increasing complexity across jurisdictions. Legal and tax obligations vary widely and often overlap.
    A family office provides the infrastructure to manage these variables with precision through thoughtful planning, disciplined execution, and cross-border coordination.
  • Cost Efficiency
    While setting up a family office requires an upfront investment, its long-term operating costs are often lower than those of outsourcing to multiple firms.
    Consolidating services under one office reduces duplication and makes it easier to scale over time as the family and its holdings grow.
    Additionally, managing a single large pool of assets is far more cost-efficient than managing multiple smaller accounts.
    With greater negotiating power, a family office can secure better pricing, more favorable terms, and access to exclusive investment opportunities.

When Does It Make Sense to Create a Family Office?

Launching a family office becomes worth considering when managing your wealth starts to feel too large or too complex to handle on your own.

A family office also makes sense when you want to get serious about creating a lasting enterprise that can persist across generations.

The firm will act as a central hub that can boost financial performance, streamline operations, keep everything better coordinated across various family activities, and provide support for long-term planning.

How Much Money Do You Need for a Family Office?

Families with at least $100 million in investable assets can establish a family office.

That said, the ideal threshold often sits closer to $250 million, especially for families looking to take full advantage of the strategic, operational, and legacy-planning benefits a family office can provide.

The guiding principle is straightforward: A family office should enhance and protect your family’s wealth, not drain it.

If it’s pulling too much from your financial assets just to stay afloat, then it may not be the right model for your circumstances.

Who Needs a Family Office: 3 Factors to Consider

Establishing a family office involves more than simply reaching a specific net worth. It’s a strategic decision that depends on the scope and complexity of your financial life.

Here are three critical factors to consider before making the move:

The Size of Your Wealth

You’ll want to look at how your income is structured. Do you have a steady cash flow from investments or business operations?

If that income can comfortably cover the family office’s overhead—staff, systems, outside experts—then the foundation is there.

However, if you’re relying on your principal to pay for operations, the model becomes fragile. Your family office should run on sustainable income, not burn through capital just to stay open.

The Complexity of Your Life

An extensive portfolio doesn’t always mean a complex one. For example, a $100-million portfolio in classical stocks and bonds can often be managed by a traditional advisory team specializing in high-net-worth clients.

However, estate plans can add layers of complexity. If you’ve set up multiple trusts, family partnerships, or foundations, a family office can help you manage and execute that strategy over time.

A family office can also handle the more detailed aspects of day-to-day operations, including bookkeeping, cash flow management, and bill payments.

The more diverse your assets across multiple jurisdictions, the greater the need for centralized coordination, compliance oversight, and customized reporting that a family office can provide.

The Priorities of Your Family

Some family offices are established to involve family members in the financial process by assigning them active roles in managing investments, overseeing governance, or leading philanthropic efforts.

Other families keep members at arm’s length and prefer to keep a clear separation, mainly to avoid conflicts or power struggles across generations.

In such situations, the family office takes care of the financial operations, allowing each family member to focus on their career, passions, or lifestyle, without getting caught up in day-to-day financial decisions.

Pillars of a Family Office

A family office isn’t just about managing wealth. It’s also about how that wealth grows, how it’s protected, and how it’s passed down to future generations.

That’s why any family office worth the investment should be built on a few key pillars:

Independent Advice

Genuinely independent financial advice is harder to find than most people realize. Banks, insurers, and investment firms may claim to work in your best interest, but at the end of the day, they answer to shareholders.

That’s how they’re built. And because of that, these firms work from a fixed playbook.

The recommendations made by an investment advisor tend to favor what’s most profitable for their company, not necessarily what fits your financial needs best.

With a truly independent family office, there’s no preset agenda and no pressure to push internal products. The advice you receive is tailored to what works for your specific goals.

Because your family office isn’t tied to a larger institution’s bottom line, you get access to a broader range of opportunities—and the freedom to make smarter, more personalized decisions.

At Asena Advisors, we ensure that your family office is accountable only to you. That means more flexibility, clearer deal structures, and strategies designed to support your long-term vision, not someone else’s.

Integrated Strategy

Your wealth is more than just a series of accounts—it’s a dynamic, interconnected system.

Every decision you make—whether it’s about taxes, investments, giving, estate planning, or business moves—triggers ripple effects across the rest of your financial landscape.

The problem is that many financial professionals tend to work in silos.

Your tax advisor, investment manager, estate planner, and legal counsel may all be experts in their fields—but if they’re not actively collaborating, key information gets lost in translation.

This fragmented approach isn’t just inefficient—it’s also costly. Missed opportunities, duplicated efforts, and preventable mistakes can erode your wealth over time.

A family office turns that model on its head.

The specialists are still there, but now they’re working together under one mantle. Everyone is on the same page—sharing updates, flagging issues, and ensuring their contributions align with the overall plan.

Instead of chasing down separate opinions or juggling different priorities, you get one unified system where each decision supports the next.

Set up properly, a family office ensures optimal risk management, helping you maximize the value of what you’ve built.

Individualized Services

One-size-fits-all approaches don’t work when it comes to managing significant wealth. Your high-net-worth life isn’t generic, so your financial plan shouldn’t be either.

A family office that actually knows you takes the time to understand how you live, what drives you, and where you’re headed.

That means examining your business, philanthropy, family dynamics—everything that influences your definition of success.

At Asena Advisors, we deliver individualized family office services that can reshape the way your resources are utilized, ensuring they serve the broader picture, not just today but years down the road.

Your goals are the blueprint, and the family office will build the structure.

Family Office Structures

While no two family offices are the same, they all focus on one thing: helping families manage their wealth in a way that fits how they want to live, spend, give, and pass things on.

Here’s how the most common types differ from each other:

Traditional Family Office

This setup is straightforward. A wealthy individual or family creates a legal entity and hires their team to manage everything—including investments, real estate, taxes, and even day-to-day finances.

The traditional single-family office is a fully private operation built entirely around the needs and preferences of that one family.

Multi-family Office

Instead of building a new company from scratch, a group of families can choose to team up and share the resources of an existing office.

This configuration still provides customized advice and support, including assistance with investing, taxes, estate planning, and managing private business transactions.

This setup is a more affordable option than running your own office, and you still get access to a team of professionals.

However, having a multi-family office does mean giving up a bit of control since decisions are shared and tailored to meet the needs of multiple families, not just yours.

Single-family Office or a Multi-family Office?

If a family’s wealth has grown past the $100 million mark, setting up a single-family office might be worth considering. It’s an effective way to manage everything in-house, with complete control over how things are run.

The firm will be built around the family’s goals and values. Decisions can be made quickly and privately—without worrying about outside agendas or competing priorities..

For families with significant wealth—for instance, around $20 million or more—a multi-family office might be the better fit.

This model brings together a select group of families who share resources while still enjoying personalized service.

You get many of the same benefits a single-family office provides, just without the cost or complexity of building and running something from the ground up.

A multi-family office offers a more flexible, less hands-on approach to expert support. From investments and tax planning to governance and succession, you still get tailored advice but with a shared infrastructure that makes it more accessible.

Outsourced Family Office

There’s also the option of outsourcing everything. This model brings together outside experts, such as accountants, financial advisors, estate attorneys, and portfolio management specialists, who will collaborate as a team to manage a family’s financial affairs.

Outsourced offices may also offer extras, such as education for younger family members or assistance with governance.

It’s usually the least expensive of the three options. However, the trade-off is that the level of control and customization isn’t quite the same as with a private office.

The Process of Interfacing With Family Offices

Every family office has its unique personality, shaped by the people who run it and the way they choose to operate. That means if you’re looking to partner with one, there’s no universal approach.

While the money is essential, it’s not the whole story. When evaluating a family office, it is helpful to consider three types of capital: financial, intellectual, and relational.

Financial capital is usually the easiest piece to put to work. What takes more digging is figuring out if the people behind the office bring insight into your space or if they have a network that can actually move the needle.

Intellectual capital refers to the knowledge, skills, and expertise within an organization that gives it a competitive advantage. This can include smart internal systems, specialized know-how, and proprietary strategies that help set it apart.

Relational capital focuses on the quality and value of relationships across the organization. That includes how the team works together and how they connect with outside partners, advisors, and collaborators.

Strong relationships help the family office stay competitive by making it easier to access and share information, thus reducing the chance of missteps.

These connections are also opportunities for the firm to expand its network of customers, suppliers, and collaborators.

These characteristics pave the way for greater flexibility in family offices. Unlike institutional funds, these firms aren’t usually tied to rigid mandates or waiting for committees to approve every move.

The Challenges of Dealing With Family Offices

Working with a family office can be rewarding, but it’s not without its challenges. Much depends on how the family office is set up.

Some operate with a lean team that handles multiple responsibilities simultaneously. When bandwidth is stretched thin, communication can become inconsistent, especially if priorities shift based on the changing interests of the high-net-worth families they serve.

Another challenging aspect of family offices is striking a balance between openness and privacy.

While transparency helps build trust and keeps communication clear, many families value confidentiality just as highly.

Finding that sweet spot is crucial to maintaining strong relationships and ensuring operations run smoothly.

Another challenge is the lack of external oversight. Since many family offices aren’t heavily regulated, there’s a risk of governance or accountability gaps if these areas aren’t actively managed.

And then there are the technical components that carry real weight, like cybersecurity, legal compliance, and risk management. They’re essential for protecting a family’s wealth, reputation, and long-term legacy.

At Asena Advisors, we take these responsibilities seriously. Our goal is to help you manage them effectively so your family office stays secure, forward-thinking, and fully aligned with your long-term vision.

How Do You Set Up a Family Office?

Family offices can be complex by nature, but with the right professional services in place, managing that complexity becomes easier.

You’ll gain access to a well-structured organization backed by dedicated, experienced specialists who understand the nuances of private wealth.

Following these steps will help make your private wealth management journey as smooth and efficient as possible:

Calculate Your Assets

Before launching a family office, it’s worth taking a step back and doing the math. After all, it must make financial and strategic sense.

A family office can bring significant value. At the same time, it can incur real costs—including staffing, infrastructure, legal, accounting, and ongoing management expenses.

To make an informed decision, you’ll need a clear understanding of your family’s total assets, how your wealth is currently structured, and how those dynamics might change over the coming decades.

That’s where outside guidance can make all the difference.

At Asena Advisors, our experienced consultants can conduct the necessary due diligence to help you evaluate whether establishing a family office aligns with your long-term goals, values, and vision for the future.

Define Your Investment Vision

Once you’ve determined that launching a family office is the right financial move, the next step is to define your vision.

What do you want this office to do?

Is the focus on driving investment performance? Preserving legacy across generations? Supporting philanthropic initiatives? Or a combination of all three?

Having a set of goals helps shape every aspect of the office—from staffing decisions and advisory relationships to the technology infrastructure needed to support your operations.

The design of your family office should reflect the outcomes your family values most.

At Asena Advisors, we are intimately familiar with the importance of a globally minded structure that supports the needs of globally mobile families.

To support your goals, your family office can handle administration, financial reporting, investment advice, regulatory compliance, and tax advisory services.

Involve the Next Generation

If you’re building a family office with long-term success in mind, it’s essential to involve the next generation early in the process.

That doesn’t mean giving up control right away—it just means making sure they’re part of the conversation early enough to understand how the family office operates and what will be expected of them in the future.

Early involvement promotes continuity, reinforces core family values, and often introduces fresh perspectives.

Even if younger voices don’t influence every decision right away, their input can offer valuable insights and foster a sense of shared purpose.

When expectations are clear from the start, transitions tend to be smoother and less contentious.

As future generations get more involved, they build the confidence and knowledge they’ll eventually need to lead.

A focus on transparency and communication can ensure your long-term family governance projects work seamlessly while closely protecting your privacy.

What Does the Future Hold for Family Offices?

Family offices are becoming increasingly common, and that trend isn’t slowing down.

As wealth continues to concentrate and capital consistently outperforms labor, more families are seeking ways to manage their assets on their terms.

At the same time, service providers are stepping up their efforts. Banks and investment firms are creating concierge service offerings tailored for advisory firms.

These services now extend far beyond traditional wealth management, encompassing everything from mergers and acquisitions (M&A) to legacy planning, art collection assistance, and family education.

As the family office ecosystem grows and matures, economies of scale will make it easier—and more cost-effective—to launch and maintain a family office.

The more accessible a family office becomes, the more families will choose to take that step.

Key Takeaways

Amid the rapidly evolving family office space, we bring deep experience to offer support that’s designed to handle both the complexity and scale of your substantial wealth.

  • We currently work with multiple family offices worldwide, representing a combined net worth exceeding $10 billion.
  • Our financial services team can help with private investments, tax optimization, and estate planning to support your long-term goals.
  • An extensive network of professionals can keep your wealth secure and productive, not just for the next few years but for the next few generations.

If you’re exploring what’s possible for your financial future, our asset and wealth management firm is here to walk you through your options. You can reach us at (818) 385-2833.