As the term suggests, an SFO is a dedicated operation built to manage a single family’s affairs. From their opaque origins, SFOs now embrace a broader set of supportive functions. From tax to real estate. From philanthropy to governance. From family relationships to succession planning and global expansion. Not only do some SFOs no longer focus on investment, but outsourcing it, keeping other activities in‑house to preserve confidentiality. 

It is at key moments in a family firm’s lifecycle that SFOs become acutely relevant.ⁱ Only 30% of FOBs survive the 1st generation. A tenth of those reach the 4th generation.ⁱⁱ Those who do meet a daunting event horizon. It raises critical questions. Approach banks or private equity? Go public, whilst safeguarding the firm’s founding purpose and values? Join, appoint, or create a family office? 

The last option reaches peak validity when a family sells its operations and suddenly monetizes a big pool of capital or has accumulated a meaningful one, not required for day to day activities. Private equity is a major source of monetization (investors have a healthy appetite). The family may retain a vested interest in what they have sold, keeping sight of the ecosystem from multiple vantage points. The apparent comfort of PE leads many SFOs to remain invested. But families must also keep an eye on asset mix and cash‑flow management. Understanding that they’ll need a substitute for the operating asset that once fed the family lifestyle. 

SFOs can also help a family fulfill a purpose for its next generation, via entrepreneurship, academia, or politics. Philanthropy is on the rise - endowing foundations in which a family member seeks an active role. No longer vehicles for casual donations, these are increasingly meaningful, professionally run entities. 

Given their increasing scope and expertise, a family may offer the services of their SFO to others. Some hold back, given their desire for confidentiality in a world that feels more public.  

As SFOs evolve, so does their need for outstanding leadership. But this cannot be entirely family‑based. Firstly, third‑party independence is critical. Secondly, the leadership team from the operating business, family members and professional managers alike,however trusted, may lack the skillset an SFO needs. 

Changing lanes 

SFOs are a specific and selective candidate category. We seek candidates from inside and outside the ecosystem.   

Insiders must understand that each SFO has an unspoken lexicon. A solid track record with one family doesn’t guarantee success with another. It is important to avoid “When we” thinking. For example, moving from a first‑ to a third‑generation single family office can be a major leap. First‑generation SFOs tend to be led by the founder - hands‑on, engaged, and controlling. By the third generation, the connection is weaker, especially if the business has been sold. In many U.S. cases, families have divested their public shares over generations, loosening their connectivity. For example, the Ford family has dozens of heirs, many without a strong link to the operating company.  

Partners from professional services - law, accounting, or consulting firms - often transition well; they are used to serving clients, in this case, captive ones. Those attracted often also appreciate no longer having to do business development. But as SFO executives, they must live with their decisions. Advising is one thing; implementing and being accountable is another. 

Senior executives who have answered to shareholder groups operating under short‑term cycles – or smaller, tightly held investor groups - can also bring useful rigor. 

Preparing for (single family) office 

Whatever their source, candidates must pair intellect with humility and discretion. What’s more, not all decisions in an SFO are rational or data‑driven. EQ is essential, and we test it thoroughly in the recruitment process: self-awareness, self-regulation, intrinsic motivation, empathy, and social skills. 

In a listed organization, executives are under constant pressure to deliver quarterly results and may be under the impression that an SFO will loosen the valve. But an SFO is no tranquil river. An incomer will likely encounter a sense of urgency - even impatience. But there is one critical difference – dynamism doesn’t mean short‑termism. It is vital to reconcile short‑ and long‑term perspectives. 

Joining a single family office (rather than a multiple family equivalent) means investing time upfront to understand the family dynamics. Who is included in decision-making, and why? What are the family’s deeply-held cultural facets?ⁱⁱⁱ This knowledge is critical. Many executives like the idea of working in an SFO, but only a portion will truly succeed in this special environment.  

Larger SFOs often build advisory boards of an equal caliber to listed equivalents – attractive places for NED and Chair candidates. Certainly, the compensation is comparatively modest. But the intellectual rigor is not: SFOs offer cognitive challenge without the distractions of public governance and allow long‑term thinking. They tend to be more flexible in terms of timing, making it easier to combine board roles easier with other commitments. The key is avoiding conflicts. If a family’s wealth is in real estate, we would never place a senior executive from a competing area on their board.  

Today’s SFO is a dynamic platform for stewardship, strategy, and long‑term value creation. As its remit widens, so does the need for independent leadership balancing discretion with decisive action. To outstanding executives and advisors, SFOs offer meaningful, high‑impact roles. For families, they provide the governance strength essential to sustaining wealth and purpose across generations. 

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[i] Amrop, (2024). ‘Family-owned businesses, a human story.’ Part 1 – Lifecycle.

[ii] Porfírio, J.A., Felício, J.A., Carrilho, T. (2020). ‘Family business succession: Analysis of the drivers of success based on entrepreneurship theory’, Journal of Business Research, Volume 115, 2020, Pages 250-257

[iii] Amrop, (2024). ‘Family-owned businesses, a human story.’ Part 2 – Culture.