Daniel Aghdami and Renee Neri are Partners with leading executive search firm Heidrick & Struggles
Working with a family office is a complicated, challenging path, but one with enormous potential, write Daniel Aghdami and Renee Neri of Heidrick & Struggles
Family offices are a growth industry. According to Deloitte, there are around 8,030 operating across the globe, managing $3.1T in assets – a figure set to rise to $5.4T by 2030. There are myriad opportunities for talented individuals within these organizations; but how do you know if you’re cut out for a family office career?
As the privately held companies that handle the wealth and investment management of some of the world’s most affluent families, family offices represent a high-powered industry. Their employees can gain valuable experience in succession planning, legal affairs, property management, coordinating philanthropic work and running private foundations, financial and investment services, payroll and accounting, staff management, and even in educating family members on any of these areas.
It’s no surprise that for many, a job in a family office seems like an exciting option. Whether it proves to be so depends on the incoming executive’s mindset; the role isn’t for everyone, but for those eager for variety and high levels of responsibility, they represent a formidable career choice.
A unique, sometimes challenging, working environment
No role comes without its challenges, but family offices differ both in variety and scale. Family offices are often built around flat hierarchies, with family members in senior positions of control, meaning there are fewer career progression opportunities than in the corporate world.
The structure of family offices also means that multiple family members may be involved in decision making and have differing priorities and views. This can lead to complex, sometimes difficult, stakeholder management, and an imperative to understand the nuances of family relationships.
One outcome of this is that the objectives and strategic direction of a family office can change at high speed depending on the preferences of the family, with shifts sparked by social, political or personal events. Such moves are not always predictable, but nevertheless need to be acted on with clarity. This may mean that carefully considered, pre-planned investment decisions are overridden by family members, leading to frustration, potentially non-optimal outcomes and lack of performance ownership for investment specialists or the Chief Investment Officer.
Perks and long-term benefits
Despite these specific challenges, there are also facets that make working in a family office a fulfilling and rewarding endeavor. Typically, you can expect to enjoy very varied work, with a much broader range of responsibilities than can be found in many more institutional environments. These roles, which come with a high level of trust and responsibility, and demand exceptional loyalty, can be very rewarding if you have a service mindset and derive fulfilment from helping others achieve their goals.
As a family office team member, you will become part of an extensive global network and have access to information and opportunities gained through the family name and standing of the family office. And for long-time team members, there is usually a very attractive compensation set-up, as loyalty and trust are traditionally well rewarded.
Many of these families are a delight to work for, and you will have plentiful opportunities to build personal relationships with your employers, who will regularly show their appreciation for your valuable contributions.
Are you a family office candidate?
If the working environment of a family office appeals, you may well be able to match your skillset to their demands. Because family offices are active in so many sectors, there are not only roles for finance professionals with specific or generalist investment skills across equities, fixed income, real estate, private equity, and other alternative investments; but also positions for people from the travel, hospitality, administration, property, and consulting sectors.
Whatever your area of expertise, there are particular credentials that will be crucial to launch your career in a family office. The most important is your mindset. You need to be adaptable, reachable, often (but not always) willing to travel, and demonstrate the utmost loyalty and discretion. You must be long-term oriented, have strong personal values aligned with those of your employers, and the ability to build trust with those you work for and with.
Ultimately, while your expertise and track record will get your foot in the door, the weight of the decision on proceeding to an offer of employment will rest on your chemistry fit and perceived values. You need to be clear on what your values are, therefore, and whether it is the right family office for you.
