What is a Family Office? Your Complete Guide to the Stealthiest Invest

A family office is a private wealth management entity established to manage the financial, legal, and personal affairs of wealthy families, ensuring the preservation and growth of their wealth across generations. A family office offers a comprehensive range of services (to itself), including investment management, tax planning, estate management, bill payment, and philanthropic advice, tailored to the unique wealth management needs of ultra-high-net-worth families and their family's assets. They act as a one-stop shop for the family’s financial and lifestyle needs, allowing high-net-worth families to efficiently manage their wealth (and the administration aspects of their lives).

Family Office Meaning

The term “family office” refers to a private entity that serves the needs of a single wealthy family or multiple affluent families (who are usually related). These offices handle financial, legal, and sometimes personal services. Family governance plays a crucial role in preserving family values and goals across generations by creating effective decision-making processes and resolving conflicts among family members. The goal is to preserve and grow the family’s wealth and values across generations.

What is a Family Office and How Does it Work?

A family office manages a family’s assets and investments while offering services like tax planning, risk management, estate planning, and succession planning. Family wealth is crucial in this context, as family offices play a significant role in protecting and preserving this wealth across generations. They often handle daily personal affairs such as household staff management, bill payments, and travel arrangements.

Family offices are structured to offer personalised services that meet the unique needs of the family members. They can be divided into single-family offices (for one family) and multi-family offices (for several families).

A single-family office focuses exclusively on managing the wealth of one family. It employs a dedicated team of professionals who work on everything from managing the family’s investments to planning their legacy.

Multi-family offices, on the other hand, provide a cost-effective solution by sharing resources among several families, allowing access to a broader range of expertise and services.

There are various types of family offices, such as virtual family offices, which utilise technology to provide cost-effective and specialised services, contrasting their benefits and challenges against traditional family offices.

Family Office Structures

Family offices are usually set up as a series of companies and trusts, that divide and protect substantial cash and illiquid assets of the family.

They are typically structured using a combination of company and trust structures. Common approaches include:

Private Company Structure: A proprietary limited company (Pty Ltd) may be established to oversee the operations of the family office. This allows for limited liability and a formal corporate governance structure. It's also tax beneficial - because whilst individuals get taxed at up to 49% of their income, companies only get taxed at a maximum rate of 30%.
Trust Structures: Trusts, such as discretionary or family trusts, are commonly used for asset protection, estate planning, and tax efficiency. Trusts enable wealth to be passed on to future generations with controlled distribution of assets.
Hybrid Structure: Some family offices combine company and trust structures, where the company manages operations, and trusts hold the family's wealth, offering flexibility and legal protection.
Holding Companies: These can be established to manage investments and own subsidiary companies or family-owned businesses. They streamline governance and facilitate succession planning.

These structures allow families to efficiently manage their financial affairs, protect their assets, and plan for intergenerational wealth transfer. The choice depends on the family’s objectives, legal considerations, and tax planning strategies.

Family Office Jobs

Most family offices employ a collection of professionals whose sole duty is to manage the affairs of the family office. These family office roles can include:

CEO - It is most common that family offices are helmed by a representative from the family, who has ultimate say in strategic and investment management decisions.
Board of Directors - A board of a family office usually contains a number of beneficiaries of the office (family members), plus independent and senior advisors (sometimes the most senior lawyer or accountant). They can also include nominated trustees and will executors, or trusted long-term associates of the family.
Investment Committees - In order to make sound investment decisions for the office, these businesses can have investment committees that assess investments prior to these being referred to the board. Investment committees can be involved throughout the protracted process of investment consideration to ensure that deals offer the optimal return outcome.
CFO - Usually family offices have senior accountants or CFOs charged with managing the family's cash and balance sheet.
Accountants - Tax and other - due to the large volumes of cash, earnings and expenses, family offices usually have a raft of accountants working for them to manage their money effectively.
Lawyers - Property, Tax and M&A - Family offices can often have a raft of lawyers working for them who continually deal in the family's legal affairs, and protect their interests. Family offices also make a large number of investments and divestments over the years, and these deals need lawyers on a regular basis.
M&A Professionals - There are often employees of a family office who are tasked with identifying good new investments - including identifying public and private companies who require capital or wish to exit. These individuals create the 'deal flow' for the family office so it has a steady stream of new investment opportunities to investigate.
Valuers - Many family offices have a valuer - whose job it is to value new assets, and revalue existing ones so that the accountants can make informed accounting treatments for the portfolio.
Property Managers - Usually a family office has multiple property investments which require maintenance and management. If they have properties that are being leased, then a lot of daily management goes into those investments.
Administrators - Family offices usually have administrators who assist the lawyers and accountants, but also the family in managing their affairs.

What is a Family Office in Australia?

In Australia, family offices function similarly to their global counterparts but with a focus on local investment opportunities, property management, and navigating Australia’s unique legal and (high) tax environment. It is estimated that family offices in Australia manage between $100 billion and $200 billion in wealth.

A well-structured family office is crucial for supporting the long-term legacy and strategy of a family-owned business, balancing professional management with family dynamics.

Many Australian family offices focus on preserving wealth through conservative investment strategies, including private equity and property management. They also manage succession planning to ensure that younger family members are equipped to continue managing family assets for future generations.

Top 10 Family Offices in Australia

In our best selling downloadable investor list, our list of family offices has a total of 211 family offices on it so you can get the complete list without delay. Otherwise, here are ten of the wealthiest family offices in Australia, known for managing significant wealth derived from successful business ventures and investments of Australia's most successful entrepreneurs:

Tattarang (formerly Minderoo Group) – Founded by mining magnate Andrew Forrest, Tattarang is one of Australia's largest private investment groups, with interests in mining, agribusiness, energy, and venture capital.
Grok Ventures – Atlassian co-founder Mike Cannon-Brookes runs Grok Ventures, which focuses on sustainable energy, technology, and social impact investments.
Bailador Technology Investments – This family office, co-founded by David Kirk, former CEO of Fairfax Media, focuses on early- and growth-stage tech companies, with investments across Australasia.
MH Carnegie & Co – Led by Mark Carnegie, this family office manages private equity and venture capital investments, focusing on healthcare, real estate, and education.
Judo Capital – Founded by Joseph Healy and David Hornery, Judo Bank operates as a family office and challenger bank, providing specialized financial services to small and medium-sized enterprises.
Cannon-Brookes Family Office – Mike Cannon-Brookes also has a distinct family office managing personal wealth, focusing on tech, clean energy, and environmental sustainability projects.
Zhong Family Office – Chaired by Chau Chak Wing, this office manages investments derived from property and construction, along with significant philanthropic contributions in education and the arts.
Bermuda Asset Management – Run by the Besen family, this office has interests in property, retail, and venture capital. The family is well-known for its success in the Australian retail industry.
Alceon Group – Co-founded by Trevor Loewensohn, Alceon operates as a private investment firm with interests in real estate, retail, and debt investments.
Wilson Asset Management – Founded by Geoff Wilson, this office focuses on managing wealth through listed investment companies (LICs), with a strong emphasis on equities and charitable endeavours.

These family offices handle vast wealth and investments across multiple sectors, including technology, property, and venture capital, with many also engaged in significant philanthropic activities.

How Much Money Do Affluent Families Need for a Family Office?

To establish a family office, significant wealth is required, typically ranging from $100 million to $500 million in investable assets. This range allows the family to cover the costs associated with hiring professionals to manage their assets and affairs.

What is the Minimum Net Worth for a Family Office in Australia?

In Australia, the minimum net worth to establish a family office is typically around AUD $100 million, though multi-family offices offer services to families with lower net worth by pooling resources.

What are the Disadvantages of a Family Office in Tax Planning?

While family offices offer many benefits, they come with drawbacks, including:

High Costs: A family office requires a dedicated team of well-paid professionals, which can be expensive.
Complexity: Managing a family office involves dealing with various financial, legal, and lifestyle matters, which can be overwhelming without experienced professionals.
Potential for Conflict: Family members may disagree on investment strategies or how the family’s wealth should be managed, especially across generations.
Outsourced Family Office: Unlike traditional family offices, an outsourced family office involves a collaborative network of service providers—such as financial advisors, lawyers, and accountants—working together on behalf of a client. This can reduce costs but may result in less control over service providers and potential inconsistencies in service quality.

Why Do People Need a Family Office?

Wealthy families require family offices to manage the complexities of their wealth, which can include investment management, tax planning, and handling personal affairs. There is a limit to how much external contractors or consultants can do when managing large quantum's or complex portfolios. Many wealthy families use outsourced contractors - like lawyers, tax consultants, stock brokers and wealth managers, but with their high fees, there comes a point where it makes more sense to hire these people directly.

Many family offices provide a diverse range of services, not only managing wealth but also handling lifestyle management, educational support for younger generations, and comprehensive financial planning. Family offices provide a centralised platform for managing both financial and lifestyle needs, offering services that cater to the family’s long-term goals, such as succession planning and maintaining the family’s legacy across generations.

Our Best Selling Product: Family Offices Investor List

One of the most popular products on our eCommerce store is the Family Office Investor List. This downloadable list contains 315 contacts from 211 Australian and global family offices (who are making active investments in Australian companies). It is a valuable tool for businesses raising capital, especially for those in Series A or B funding rounds. The list includes details such as:

Family office name
Website
Investment preferences
Known funds under management
Contact details of principals

The reason this product is one of our most popular, is because family offices usually operate in stealth - hiding from public view for fear of scrutiny. We researched all the family offices we could find in Australia and put them in one list - so you can reach out and present your big idea to them as an investment opportunity.

This product is ideal for connecting with potential investors in Australia. Businesses looking to expand or raise funds can use this resource to initiate contact with family offices that are open to new opportunities, primarily through LinkedIn, as personal email addresses are protected under Australian privacy law.

For more details on this list, you can visit the product page here.