The rise of next-generation heirs is fundamentally reshaping how family offices are structured and run, with knock-on effects for hiring and leadership. As younger family members take on greater responsibility, many are moving away from the models established by their parents and towards offices built around impact, innovation, and long-term relevance.
A new study from IMD’s Global Family Business Center and the Family Business Network, drawing on survey data and interviews with family principals across multiple regions, shows that priorities are shifting rapidly. Sustainability, impact investing, technology modernisation, and diversity are now central considerations, particularly when selecting advisors and senior executives.
This shift has fuelled growing demand for a new profile of professional, including alternative investment specialists, ESG and impact experts, and senior technology leaders capable of modernising systems and improving operational efficiency. However, the report warns that the supply of candidates with the right mix of skills has failed to keep pace.
Family offices increasingly require individuals who combine technical expertise with softer capabilities such as discretion, emotional intelligence, and the ability to operate within complex family dynamics. That combination remains rare, even among experienced finance professionals, intensifying competition for a limited pool of talent.
The challenge is compounded by the rapid growth of the family office sector itself, driven by founder liquidity events and the acceleration of intergenerational wealth transfer. While investment talent is often the first priority, families with a strong focus on impact or sustainability are layering additional specialist capabilities on top.
Despite competitive compensation, family offices do not always present a compelling proposition for senior hires. Career progression is limited once top roles are reached, and total pay often lags what elite performers can earn in private equity, hedge funds, or large financial institutions. In response, some families are experimenting with long-term incentive structures and carried-interest-style arrangements to retain key executives.
The market’s opacity adds another layer of complexity. With no formal regulation, standardised titles, or visible talent pool, families often rely on personal networks, headhunters, and trusted advisors to fill critical roles. For now, many are adapting pragmatically, building teams through relationships rather than established pipelines as the talent war continues to intensify.
