An institutional approach to family wealth management is key: Report

A new whitepaper released by global investment institution Lighthouse Canton emphasises the critical need for affluent families to institutionalise their wealth management practices to ensure sustainable, long-term preservation and growth of their assets across generations.

The report calls attention to the increasing complexity of managing family wealth, driven by diverse portfolios spanning multiple jurisdictions, asset classes, and governance frameworks.

It also emphasises that family office structures — such as single family offices, multi-family offices, or blended service models — offer a structured yet adaptable framework for navigating these intricacies.

“As family wealth becomes increasingly complex – spanning multiple jurisdictions, asset classes and governance structures – family office structures such as single family offices or multi-family offices, can provide a structured yet adaptable framework for such families to navigate these intricacies,” said Prashant Tandon, MD  and CEO for Lighthouse Canton in the UAE.

Key strategic aspects family offices should consider

According to the whitepaper, a modern family office must evaluate several strategic aspects, including talent acquisition, technology integration, risk management, and portfolio oversight.

In addition, families must address broader challenges such as market volatility and the intergenerational transition of wealth.

“The most effective wealth and legacy planning strategies emerge from deep, transparent partnerships that go far beyond traditional financial services. Families must actively seek providers who don’t just manage assets, but who become trusted strategic partners committed to understanding their unique vision, values, and long-term objectives,” Tandon emphasised.

The whitepaper further outlines the advantages of adopting an institutional model in areas including:

• Structured and scalable investment and specialist services

• Talent attraction and retention

• Effective use of technology for multi-asset portfolio consolidation and risk transparency

• Navigating evolving regulatory landscapes across jurisdictions

“Building a strong foundation for your family office structure and understanding the models which are applicable to your unique position is crucial for any family looking to secure their legacy. What services you require, the talent stack you will require, what technology you can leverage, how do you adapt to evolving risks and regulations, and how do you balance the cost of running your family office – these are all key aspects that families must evaluate when choosing a model that suits their needs,” said Tandon.

The whitepaper, titled ‘The Multi-Family Office Advantage’, was launched at a roundtable hosted in collaboration with the Dubai International Financial Centre (DIFC)’s Family Wealth Centre.

Read: How family businesses can preserve wealth, create legacies