Succession planning is often discussed in the context of families, founders, and balance sheets. But there is another dimension that receives far less attention — and carries just as much risk if ignored: the succession of the professionalswho run the family office.

As the family office sector matures, a growing number of offices are facing a quiet but consequential question: Who replaces the people who built this operation when they step away?

For families who created offices to simplify their lives, the prospect of managing internal talent transitions can feel like the opposite of the original goal.

A Young Industry Approaching Its First Major Talent Transition

Family offices may feel established, but as an industry they are relatively new. Deloitte estimates there are roughly 3,550 single-family offices in North America, representing a 61% increase since 2019, and nearly two-thirds of U.S. family offices were formed within the last 25 years.

That means many offices are now encountering their first wave of professional turnover — senior leaders retiring, long-tenured employees seeking new opportunities, and skill gaps emerging as investment strategies become more complex.

This transition is not theoretical. It is already underway.

Why Talent Succession Is Becoming More Complex

Modern family offices no longer operate with a narrow mandate. Many now manage private equity, venture capital, real assets, private credit, and other specialized investments that require deep expertise.

As Mike Selfridge of Bessemer Trust explains:

“The family office sector is rapidly professionalizing…Increasingly, these entities have moved into complex asset classes such as private equity, real assets, commodities, venture capital, and private credit.”

With this evolution comes a sharper need for specialized professionals and a much smaller talent pool to draw from.

The challenge is compounded by demographics. As experienced professionals retire, replacing them is not a one-for-one exercise. New hires often require different compensation structures, different expectations, and more robust governance than early-stage offices were designed to support.

Why Size and Structure Matter

Not all family offices face this challenge in the same way. Larger offices managing billions tend to resemble institutional businesses, with formal roles, layered teams, and established processes. Smaller offices often rely on a handful of trusted professionals who wear multiple hats.

As Selfridge notes, scale changes everything, including how succession must be approached. Smaller offices may find that rebuilding internal teams is far more difficult than expected.

This reality is driving interest in alternative operating models.

The Rise of Hybrid Approaches

Rather than replacing every departing professional in-house, many families are rethinking how work gets done.

Selfridge describes a growing openness to hybrid structures:

“The hybrid approach — partnering with a multi-family office and other service providers — is emerging as a logical way forward for single-family offices to professionalize and scale operations.”

Rising regulatory complexity and operating costs have only accelerated this trend. Economies of scale, shared infrastructure, and access to institutional-grade expertise are becoming increasingly attractive, especially for offices that want continuity without rebuilding everything internally.

Why the Right Talent Matters More Than Ever

Succession planning isn’t just about replacing people — it’s about preserving judgment.

In specialized investment areas, the difference between good and poor talent can be dramatic. Selfridge highlights this risk clearly:

“In venture capital…the dispersion of returns between top- and bottom-quartile managers can exceed 20 percent.”

For a single-family office, having the right professionals in place to evaluate managers, access opportunities, and allocate capital wisely is critical.

To attract that level of expertise, traditional salary structures may not be enough. Creative compensation including carried interest or long-term incentive alignment is increasingly part of the conversation.

Outsource, Insource, or Blend?

One of the most common questions families face is what should remain in-house versus what can be outsourced.

There is no universal rule. As Selfridge puts it:

“There is no bright-line rule that says you can outsource up to X percent of your operations and still be a single-family office.”

What matters is maintaining control over critical functions (particularly those involving governance, regulatory oversight, and risk management) while thoughtfully leveraging external partners where it adds resilience.

Succession planning for professionals often becomes the catalyst for reassessing this balance.

A Broader View of Succession

When families think about succession only in terms of leadership or ownership, they miss a crucial layer of continuity. The systems, expertise, and institutional memory held by long-tenured professionals are just as important as who sits at the top.

Families that address professional succession early have more options:

• Gradual transitions rather than abrupt replacements
• Time to evaluate hybrid or outsourced models
• Reduced dependency on any single individual
• Greater operational resilience

Those who delay often find themselves making decisions under pressure — precisely when stability matters most.

Looking Ahead

As family offices continue to mature, succession planning must expand beyond family governance to include the people who run the day-to-day operation.

The question is no longer simply who inherits the wealth, but also who carries the expertise forward.

At White River Consulting, we help families think holistically about succession — across leadership, operations, and professional talent — so transitions strengthen the office rather than disrupt it.

If your family office hasn’t yet considered succession for its key professionals, now is the time to begin that conversation.