How to get a job at a Family Office

Author

Mr FamilyOffice
March 22, 2024

How to get a job at a Family Office

How do you break into the closed world of family offices?

That’s the question for today

We start with a look at what makes family offices such an attractive sector, who family offices are hiring, and what you need to do to get in the door of a family office

There’s a dose of reality with a look at the challenges of family office life and finally a description of what a family office recruitment process might look like

So, here’s the agenda:

➡️ The allure of the family office

➡️ Who family offices recruit

➡️ How to break into the family office space

➡️ The challenges of working for a family office

➡️ The recruitment process

➡️ The allure of the family office

For family offices, the next two decades will be seismic. Tens of $ trillions are being transferred from baby-boomers to the next generation

The great wealth transfer is not just changing who controls the world's assets but how these assets are managed. More often than not, the answer will be family offices

Recent research highlights a dramatic increase in family office numbers, rising from fewer than 1,500 in 2019 to more than 4,500 in 2023

And as family offices proliferate, the demand for skilled professionals to staff these offices is increasing. And the job market is becoming ever-more competitive

So what does this mean for professionals eyeing careers in this niche? Opportunity - and lots of it.

Why do people want to pivot into family offices?

Many see the sector as a major growth area and are simply following the money

Some are sick of the corporate grind and see family offices as a less formal environment in which to work. Long-term investing is often more appealing than monthly and quarterly targets.

Compensation

As family offices compete for the best candidates, compensation is improving

Some data on compensation:

A key benefit for many family office employees is the opportunity to co-invest alongside the family. This opens up opportunities to participate in deals and sometimes lending that are not available to most people

Co-investing is playing an increasingly important role in the battle to recruit the best talent

➡️ Who family offices recruit

What jobs do family offices offer?

There are a wide range of possible careers at family offices including finance, accounting, law, tax, portfolio management

Family offices rarely recruit students directly out of college. Even family members are encouraged to build up outside experience before joining the family office, either in the family business or the wider job market

The most common hunting grounds for family offices:

  • Investment banks

  • Private banks

  • Wealth management practices

  • The Big 4 - Deloitte, EY, KPMG and PwC.

➡️ How to break into the family office space

So how do you get your foot in the door?

Landing a job at a family office hinges on showcasing the skills, experiences, and traits specific to the office you're targeting

Here's how to position yourself:

Know the Landscape 🌳

First and foremost, understanding the different types of family offices (single-family vs. multi-family) and their specific needs is crucial

As with any job search, tailor your approach based on the type of family office you are applying to

SFOs can also vary in nature considerably and can broadly be divided into two types

Institutional family offices - these firms operate in a similar fashion to hedge funds. They are arranged like investment firms and employ analysts, quants, portfolio managers etc. Ray Dalio’s family office is a classic example of an institutional family office

Traditional family office - these firms have a broader scope. They are focused on managing the complexity of substantial wealth. They manage investments, although not always directly, they deal with lifestyle management, managing concierge services, estate and succession planning, and philanthropy. The Walton family office is a good example of a traditional family office with its focus on sustaining the family's wealth through strategic investments, philanthropy, and supporting family members' entrepreneurial ventures

 

Cultivate Relevant Skills 📚💼

Family offices often look for a mix of financial acumen, discretion, and the ability to handle complex, multifaceted responsibilities

It’s therefore important to build and highlight experiences that showcase relevant skills for the role you are seeking. This could include financial management skills, understanding of estate planning, tax strategy etc.

Whatever role you seek, you mist maintain confidentiality and build trust

Networking & Visibility 🤝🔍

Family offices have a strong tendency towards hiring from their own network

This can be incredibly frustrating if you are on the outside

When I mentioned on 𝕏 that this week’s newsletter was about finding a job at a family office, one smart response was “1. Befriend a rich person”

While there’s probably some truth to this, there are other ways to network with family offices

The path to a family office often runs through a network of professional and personal contacts. Your bank, your advisors, your auditors could all be indirect links to family offices

You can increase your visibility by attending industry events, joining relevant forums and groups, and connecting with current family office professionals on platforms like X or LinkedIn

Some popular newsletter editions on connecting with family offices:

Understand the Family's Values & Goals 🌱🎯

Each family office is as unique as the family it serves

So you need to research the family office as thoroughly as possible

That may be reading through published material, websites (if the family office has one), news reports, any public information

Demonstrating an understanding of the family's values, philanthropic interests, and long-term goals can set you apart

The Value of Soft Skills 🧩💬

Soft skills are particularly important in family offices. Communication, adaptability, and emotional intelligence are essential, particularly for traditional SFOs. Candidates must also show that they have good intuition, empathy and can act with discretion

Prospective employees should therefore

→ Work on their soft skills

→ Highlight their soft skills

A large number of family offices prioritize privacy. Trust therefore plays a vital role in the family office team

Staying Ahead in a Competitive Market 🚀💡

With the market for family office positions becoming increasingly competitive, continuous learning will help you stand out

Stay updated on industry trends, pursue certifications relevant to the role you are targeting

The wealth management landscape is constantly evolving, and so should you. Whether it's new financial regulations, investment strategies, or trends in philanthropy, being a lifelong learner will keep you relevant and valuable to any family office

For a list of resources, take a look at Family Offices: the Ultimate Resources 

➡️ The challenges of working for a family office

It’s worth remembering that there are plenty of downsides to working in a family office

→ The vast majority of family offices want to hire experienced people. Don’t expect graduate programs. So you will need to get some relevant experience before making the switch

→ In all but the largest family offices, there is no set career path. With typically low employee turnover, positions don’t naturally open up. This can mean people getting stuck in a role without prospects for promotion

→ Families are messy and can be difficult to work for. Circumstances and family dynamics can change over time making the work environment less stable

→ While family office compensation is generally very good and improving, hedge funds, VC, PE and investment banks can often still offer better packages. Only 48% of US family offices offer co-investment opportunities (for senior staff, this should be a deal-breaker)

➡️ An illustrative recruitment process for a family office

Prepare for a Different Interview Process 🗣️🔍

Interviewing with a family office can be markedly different from other financial sectors. Be ready for deeper dives into your personal values, discretion, and how you handle sensitive information. Demonstrating alignment with the family's ethos and confidentiality standards is key.

How Family Offices recruit

Source: Stryde Search 2023

Family offices often recruit anonymously through a recruitment partner

Interview processes vary widely and will depend on the family office, but here’s an illustrative interview process:

Stage 1: Initial Screening & Phone/Zoom Interview 📞

Following an initial screening of resumes, the first step is a phone or video interview. This stage is designed to assess basic compatibility with the role's requirements and an overview understanding of your background

Expect questions about your resume, basic qualifications, and reasons for applying. It's also an opportunity to understand the position and the family office environment better

Preparation Tips:

  • Review your resume thoroughly, ensuring you can discuss all points confidently

  • Research the family office, understanding their history, values, and investment philosophy

  • Prepare concise answers highlighting your experience and how it relates to the role

Stage 2: In-Person Interview, Focusing on Experience and Record 🏢

The second stage often involves an in-depth, in-person interview to explore your professional background, specific experiences, and achievements. Here, the goal is to understand your expertise, how you've handled past responsibilities, and your approach to challenges

Preparation Tips:

  • Be ready with detailed examples of your work, particularly scenarios that showcase your problem-solving skills, adaptability, and initiative

  • Practice explaining complex concepts or projects you’ve managed in an accessible way

  • Prepare questions that demonstrate your interest in the role and your understanding of family offices

Stage 3: Panel Interview, Possibly Involving a Presentation 🗣️

This stage may involve meeting with multiple members of the family office team, including senior staff or family members themselves, in a panel format

You might also be asked to prepare a presentation on a relevant topic or area you're interviewing for, demonstrating your expertise and how you communicate complex information

Preparation Tips:

  • Understand the audience for your presentation, tailoring the content to their interests and the level of expertise

  • Anticipate questions that might arise from your presentation and prepare thoughtful, concise responses

  • Practice your presentation skills, focusing on clarity, pacing, and engagement

Stage 4: Personal Interview, Learning More About the Family 🏠

The final stage is often a more personal interview, designed to delve deeper into your values, personal qualities, and potential fit with the family's ethos. This may include discussions about the family's history, values, philanthropic endeavors, and how you see yourself contributing to their legacy

Preparation Tips:

  • Reflect on your own values and how they align with those you’ve identified in the family office

  • Be prepared to discuss long-term goals, both professional and personal, and how they align with the role

  • Show openness and emotional intelligence, understanding that trust and discretion are paramount in a family office setting

General Advice for All Stages:

  • Authenticity: Always remain true to yourself. Authenticity is crucial in building trust and rapport

  • Research: Continuously deepen your understanding of the family office and the specific family it serves. Tailor your responses and questions accordingly

  • Professionalism and Discretion: Emphasize your professionalism, particularly your ability to handle sensitive information with the utmost discretion

  • Follow-Up: After each interview stage, send a thoughtful follow-up note thanking the interviewers for their time and reiterating your interest in the role

The Path to a Family Office Career

Family offices are not right for everyone

And even if they are right for you, the timing also needs to be right

Any recruiter will tell you that research is essential for any job application, but that is especially true for family offices

Unlike the fast-paced environment of banks or large corporations, family offices offer a chance to be part of a close-knit team, focusing on long-term investments

The intimate nature of family offices means that finding the right fit is essential for both the employee and the family office

𝕏 highlights

I went for brevity this week, but I think I nailed it!

Some incredible stats on family office startup investment:

The opportunities for VC

📚 what to read

This book taught me more than most business books

I bought Storyworthy by Matthew Dicks a few years ago. It changed the way I present and write. I also started writing a daily story journal, and haven’t missed a day in almost four years

📻 what to listen to

FT Tech Tonic from the Financial Times investigates the promises and perils of the technical age

📺 what to watch

My son was asking about macro-economics this week… I outsourced this to Ray Dalio - How the Economic Machine Works is a succinct and accessible lesson on how the economy works

📰 family offices news roundup

And finally…

Have you recently joined or interviewed for a family office?

I would love to hear about your experiences

I will write about the other side of the coin soon - the challenges for family offices to hire. It’s not straightforward at all

There are numerous constraints for family offices when seeking to attract and retain the very best people

But we can dive into that another day

For now, here’s to an outstanding weekend whatever you’re doing

⛷️ 🏖️ 👨‍👩‍👧‍👦 💼 🍷

See you on 𝕏

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