Succession planning has long been a key concern for entrepreneurs and wealthy families. Yet for those working within the family office sector, the question of their own succession is becoming just as important. As the industry matures, family offices must now consider how to replace senior professionals approaching retirement and ensure continuity in managing complex wealth structures.
According to Deloitte, there are now more than 3,500 single family offices in North America—a 61% increase since 2019. With two-thirds established in the past 25 years, this is still a young industry. But as many of these entities evolve, leadership transitions and the need for new expertise are coming sharply into focus.
A Professionalising Sector
“The family office sector is rapidly professionalising,” explains Mike Selfridge, Head of Client and Family Office Solutions at Bessemer Trust. “Offices are expanding into sophisticated asset classes such as private equity, venture capital, real assets, and private credit, which requires specialised talent.”
Selfridge notes that recruiting and retaining these professionals is a major challenge. To manage talent gaps and operational complexity, many families are exploring hybrid models—partnering with multi-family offices or external providers to scale efficiently. Larger single family offices with billions under management tend to resemble businesses in structure, while smaller ones face tighter resource constraints.
Rising regulatory scrutiny and cost pressures have also made the hybrid model more attractive. “Economies of scale and flexible resourcing make this approach increasingly compelling,” says Selfridge.
The Talent Challenge
As veteran professionals retire, the shortage of skilled talent—particularly in alternatives—has become acute. “It’s not enough to allocate capital to alternatives,” Selfridge adds. “The difference between top- and bottom-performing venture funds can exceed 20 percentage points. Having the right people to evaluate and access opportunities is critical.”
To attract talent, family offices often need to be inventive. For instance, structuring carried interest packages or bespoke incentive plans can help align interests with senior investment professionals or general partners who already have existing commitments.
Building for the Long Term
Many families initially explore creating a standalone family office before realising the operational demands. “Establishing infrastructure, hiring top talent, and maintaining governance can be overwhelming,” Selfridge explains. This is why some ultimately partner with multi-family offices like Bessemer—to gain institutional-grade expertise without the administrative burden.
The question of what to do in-house versus what to outsource remains a perennial concern. “There’s no fixed rule defining how much you can outsource while remaining a single family office,” he says. “What matters is maintaining control over core competencies—legal, regulatory, and fiduciary—while ensuring the structure meets compliance requirements.”
