Multi-generational family office governance

Governance framework design for a family office structure managing €2.5B across multiple asset classes and jurisdictions.

Private Holdings Global Governance & Coordination
2024 - 2025 10 months

Client Profile

Our client is a multi-generational family office managing €2.5B in assets across private equity, real estate, listed securities, and direct investments. The family wealth originated from industrial operations in Central Europe and has been diversified over three generations into a broad investment portfolio managed through a network of 15 holding companies across Luxembourg, Netherlands, Cyprus, UK, and Switzerland.

The family comprises 28 members across 4 generations with varying levels of involvement and interest in family wealth management. Following the passing of the founding generation patriarch, the family sought to formalise governance structures to ensure effective decision-making, preserve family harmony, and prepare for the next generation's transition into leadership.

The Challenge

The family office faced significant governance challenges as the family grew and evolved:

  • Decision-making ambiguity: No formal decision-making framework, with ad-hoc arrangements that created uncertainty, delayed approvals, and occasionally resulted in family disagreements.
  • Next generation preparation: Limited involvement of younger family members in governance, with no formal programme to develop their capabilities and prepare them for future leadership roles.
  • Communication gaps: Inconsistent information sharing among family members, leading to misunderstandings about portfolio performance, investment decisions, and family meeting outcomes.
  • Succession planning: No clear succession pathway for family council and investment committee positions, creating uncertainty about future leadership and governance continuity.

Our Approach

We designed and implemented a comprehensive family governance framework:

Phase 1: Family Engagement & Assessment (2 months)

Conducted individual interviews with all 28 family members to understand their perspectives, aspirations, and concerns. Analysed existing legal entity structure, investment governance arrangements, and family communication patterns.

Phase 2: Governance Design (3 months)

Designed family charter establishing purpose, values, and principles. Created family council structure with defined representation, meeting cadence, and decision-making authority. Developed investment committee charter with clear mandates, risk parameters, and reporting requirements.

Phase 3: Next Generation Programme (3 months)

Designed and launched NextGen Academy with structured learning programme covering investment analysis, governance, and family wealth history. Created junior investment committee with educational mandate and limited decision-making authority for smaller investments.

Phase 4: Implementation & Documentation (2 months)

Implemented new governance structures, established family meeting calendar and communication protocols, documented family charter and supporting policies, and created transition roadmap for future leadership succession.

Outcomes

28
Family members engaged in governance
12
NextGen members in active programme
€180K
Annual governance cost reduction
100%
Family member approval of new governance

Looking to establish or strengthen family office governance?

Discuss your requirements