# Family Office Primer

> Short, sourced research notes for single family offices on governance, succession, liquidity, secondaries, direct investing, asset allocation and people. Published by Nodem Capital; editorially independent outside the publisher's own field, with disclosures where relevant.

Notes are 600 to 900 words, answer the question in the first paragraph, cite primary sources inline (UBS, Campden Wealth, Goldman Sachs, J.P. Morgan, Citi, Deloitte, Jefferies, Morgan Stanley, KPMG, Cambridge Associates, regulators) and end with a sources list and three FAQs.

## Governance

- [What a family office governance framework actually contains](https://familyofficeprimer.com/articles/family-office-governance-framework): A family office governance framework is a set of documents, decision-making bodies and written policies. Survey data shows how many offices have each component.
- [How to set up a family office investment committee](https://familyofficeprimer.com/articles/family-office-investment-committee): A family office investment committee needs a charter, defined membership, voting rules and a cadence. Survey data on prevalence and composition is included.
- [Family constitution or shareholders' agreement: which one binds](https://familyofficeprimer.com/articles/family-constitution-vs-shareholders-agreement): A shareholders' agreement is a contract enforceable in court; a family constitution usually is not. What each covers and how the two should interact.
- [Independent directors and advisory boards: when they earn their fee](https://familyofficeprimer.com/articles/independent-directors-family-office): Independent directors earn their fee when the family has decisions it cannot referee itself. Data on prevalence, typical fees and where families resist.
- [The governance gap in numbers: what the 2025 and 2026 surveys show](https://familyofficeprimer.com/articles/family-office-governance-gap-data): Six surveys from 2025 and 2026 measure family office governance. Investment committees are common, succession plans and risk processes are not. Data compared.
- [Decision rights: separating the family, the owners and the office](https://familyofficeprimer.com/articles/family-office-decision-rights): Decision rights in a family office are clearest when family, ownership and management are treated as distinct circles with their own forums. How to map them.
- [Conflicts of interest policies for family offices: what to include](https://familyofficeprimer.com/articles/family-office-conflicts-of-interest-policy): A family office conflicts of interest policy covers related-party deals, family employment, staff co-investment and disclosure. What it should contain.
- [Beneficial ownership transparency and family offices in 2026](https://familyofficeprimer.com/articles/family-office-beneficial-ownership-transparency): Beneficial ownership rules diverged in 2026. The US exempted domestic companies, the UK added identity checks and the EU limited register access.
- [Cyber risk: the governance item family offices underweight](https://familyofficeprimer.com/articles/family-office-cyber-security): Family offices are attacked more often than they prepare for. Survey data from Deloitte, Campden, J.P. Morgan and UBS on incidents, plus minimum controls.
- [Reporting to the family: what to show and how often](https://familyofficeprimer.com/articles/family-office-reporting-to-the-family): Family office reporting works when it shows a consolidated balance sheet with look-through, performance against policy and liquidity, at a readable cadence.

## Succession and transitions

- [The great wealth transfer in numbers: what the data shows](https://familyofficeprimer.com/articles/great-wealth-transfer-in-numbers): The main estimates of the great wealth transfer, from Cerulli and UBS, what they measure, how much passes to spouses first, and what the billionaire data adds.
- [The 70% third-generation wealth loss claim, examined](https://familyofficeprimer.com/articles/third-generation-wealth-loss-myth): Where the claim that 70% of family wealth is lost by the third generation comes from, what the underlying studies measured and what better evidence shows.
- [Succession planning versus continuity planning in family offices](https://familyofficeprimer.com/articles/succession-planning-vs-continuity-planning): How succession planning and continuity planning differ, how many family offices have each according to UBS, Campden and KPMG, and what continuity adds.
- [Engaging the next generation in the family office: what works](https://familyofficeprimer.com/articles/next-generation-engagement-family-office): Survey evidence on how involved the next generation is in family offices, the barriers offices report, and the programmes they are using or planning.
- [How to run a family council: purpose, membership and agenda](https://familyofficeprimer.com/articles/how-to-run-a-family-council): What a family council does, who sits on it, what it decides, how it relates to the board and the office, and how common councils are in recent surveys.
- [Financial education for heirs: what family offices actually teach](https://familyofficeprimer.com/articles/financial-education-for-heirs): Survey data on who delivers financial education for heirs, the topics covered, the ages at which it starts, and where family offices say the gaps are.
- [Family office executive succession: CEO and CIO turnover data](https://familyofficeprimer.com/articles/family-office-executive-succession): Tenure and turnover data for family office executives from KPMG and Agreus, Morgan Stanley and UBS, key person risk, and how offices plan for departures.
- [What the next generation wants to invest in: the survey data](https://familyofficeprimer.com/articles/next-generation-investment-priorities): Survey evidence on younger inheritors' preferences for impact, private market, venture and direct investments, and whether allocations have followed.
- [Marriage, divorce and family wealth: prenups, trusts, jurisdictions](https://familyofficeprimer.com/articles/marriage-divorce-and-family-wealth): How inherited wealth is treated on divorce in England and Wales and in US community property states, the status of nuptial agreements, and the role of trusts.
- [Philanthropy as a training ground for the next generation](https://familyofficeprimer.com/articles/philanthropy-as-next-generation-training): Data on family office philanthropy from UBS, Campden and Bank of America, and how families use foundations and donor-advised funds to teach heirs governance.

## Leverage and liquidity

- [Family office liquidity management for an illiquid portfolio](https://familyofficeprimer.com/articles/family-office-liquidity-management): How family offices manage liquidity when 40% or more of assets sit in private markets, with cash levels from the UBS, Goldman Sachs and Citi surveys.
- [Forecasting capital calls: methods family offices use](https://familyofficeprimer.com/articles/forecasting-capital-calls): The pacing models, commitment schedules and historical call rates by strategy that family offices use to forecast capital calls and stress-test cash.
- [NAV loans for family offices explained: structure, LTV and cost](https://familyofficeprimer.com/articles/nav-loans-for-family-offices-explained): What NAV loans are, how fund-level and portfolio-level facilities differ, typical loan-to-value and pricing ranges, common uses and the main risks.
- [Lombard lending versus NAV lending: which fits a family office](https://familyofficeprimer.com/articles/lombard-lending-vs-nav-lending): How private bank Lombard loans and NAV loans differ in collateral, advance rates, pricing and speed, and when each suits a family office balance sheet.
- [Higher for longer: what current rates mean for family office debt](https://familyofficeprimer.com/articles/higher-for-longer-rates-and-family-office-debt): Where Fed funds, SOFR, SONIA and Bank Rate stand in October 2026, how family offices have changed their use of leverage, and fixed versus floating.
- [Before borrowing against a private markets portfolio: a checklist](https://familyofficeprimer.com/articles/before-borrowing-against-a-private-markets-portfolio): A condensed guide to the TFOA paper on NAV credit facilities: the four-part decision test, eligible NAV, cash sweeps and when a secondary sale is better.
- [Subscription lines: what LPs should know about fund credit](https://familyofficeprimer.com/articles/subscription-lines-what-lps-should-know): How subscription lines work, what ILPA recommended in 2017 and added in 2024, the measured effect on IRR and the questions an LP should put to a GP.
- [Cash sweeps, LTV triggers and covenants in portfolio loans](https://familyofficeprimer.com/articles/cash-sweeps-ltv-triggers-and-covenants): How cash sweeps, loan-to-value triggers and covenants work in loans against private portfolios, with an illustrative worked example and negotiation points.
- [Family office cash flow infrastructure: the personal CFO function](https://familyofficeprimer.com/articles/family-office-cash-flow-infrastructure): What the personal CFO function covers in a family office, from consolidated reporting to forecasting, with data on technology spend and outsourcing.
- [The distributions drought: what the DPI data shows in 2026](https://familyofficeprimer.com/articles/the-distributions-drought-dpi-data): Distributions as a share of NAV from Bain, Jefferies and PitchBook data, why the drought matters for family office cash planning and what changed in 2026.

## Secondaries

- [Private equity secondaries market 2026: volume, pricing, sellers](https://familyofficeprimer.com/articles/private-equity-secondaries-market-2026): Four adviser reports put first-half 2026 secondary volume at $118bn to $124bn, a record, with GP-led deals about half and LP portfolios pricing near 87% of NAV.
- [How selling an LP interest works: process, timeline and costs](https://familyofficeprimer.com/articles/how-selling-an-lp-interest-works): Selling an LP interest runs from data room to GP consent over one to two quarters, priced off a reference-date NAV and closed under a purchase agreement.
- [Secondary pricing by strategy: buyout, venture, credit, real estate](https://familyofficeprimer.com/articles/secondary-pricing-by-strategy): H1 2026 secondary pricing ranged from 91% of NAV for buyout and infrastructure to 68% for real estate, with venture at 79% and credit at 89%, per Jefferies.
- [GP-led continuation funds explained for LPs: roll or sell](https://familyofficeprimer.com/articles/gp-led-continuation-funds-explained): A continuation fund moves assets from an ageing fund into a new GP-controlled vehicle. Existing LPs choose to sell at the offered price or roll on new terms.
- [Secondaries for family office buyers: why allocations are rising](https://familyofficeprimer.com/articles/secondaries-for-family-office-buyers): Goldman Sachs found 72% of family offices invested in secondaries in 2025, up from 60% in 2023, drawn by discounts, funded portfolios and shorter duration.
- [The DPI problem and how secondaries address it for LPs](https://familyofficeprimer.com/articles/the-dpi-problem-and-secondaries): Private equity distributions have stayed below 15% of NAV for four years, per Bain. A secondary sale converts unrealised NAV into cash and lifts DPI at once.
- [J-curve mitigation with secondaries: how funded interests help](https://familyofficeprimer.com/articles/j-curve-mitigation-with-secondaries): Buying funded fund interests shortens the J-curve because capital goes into existing companies at a discount and distributions begin sooner than in a new fund.
- [Secondaries funds versus direct secondary purchases for offices](https://familyofficeprimer.com/articles/secondaries-funds-vs-direct-secondary-purchases): Secondaries funds offer diversification and process for a second layer of fees; direct purchases cut fees but need staff, GP access and concentration tolerance.
- [Transfer restrictions and tax in LP sales: consent, ROFR, PTP](https://familyofficeprimer.com/articles/transfer-restrictions-and-tax-in-lp-sales): LP sales are gated by GP consent, rights of first refusal and US publicly traded partnership limits, with withholding and capital gains points in the US and UK.
- [Secondary sale versus portfolio financing: selling or borrowing](https://familyofficeprimer.com/articles/secondary-sale-versus-portfolio-financing): A secondary sale gives certain cash at a discount and ends exposure; a loan against the portfolio keeps the upside but adds interest, covenants and repayment.

## Direct investing

- [Family office direct investing in 2026: what the data shows](https://familyofficeprimer.com/articles/family-office-direct-investing-2026): Survey data on how many family offices invest directly, how much of the portfolio direct deals represent, and how deal counts have moved since 2021.
- [Building a direct investment team: size, cost and skills](https://familyofficeprimer.com/articles/building-a-direct-investment-team): Staffing data by family office size, published compensation benchmarks for investment roles, and what a minimum viable direct investment team looks like.
- [Family office co-investment networks: how families share deals](https://familyofficeprimer.com/articles/family-office-co-investment-networks): How peer networks such as TIGER 21, Family Office Exchange and Campden Club work, what they do and do not do, and survey data on co-investment appetite.
- [Club deals: how family offices syndicate a transaction](https://familyofficeprimer.com/articles/club-deals-how-families-syndicate): How family office club deals are structured, from the lead investor's role and SPV mechanics to economics, syndicate governance and common failure points.
- [Direct deal due diligence: a checklist for family offices](https://familyofficeprimer.com/articles/direct-deal-due-diligence-checklist): A structured due diligence checklist for family office direct deals covering commercial, financial, legal, tax, management and ESG workstreams.
- [Fund fees versus direct ownership: the net-to-family maths](https://familyofficeprimer.com/articles/fund-fees-versus-direct-ownership): What private equity funds actually charge in 2025, what co-investments cost, what an in-house team costs, and a labelled worked example of the net result.
- [Family offices and venture capital: allocation and sentiment](https://familyofficeprimer.com/articles/family-offices-and-venture-capital): How much family offices allocate to venture capital, whether they go direct or through funds, which stages they prefer, and the 2026 market context.
- [Family offices in private credit: allocation, yield and risk](https://familyofficeprimer.com/articles/family-offices-in-private-credit): Family office allocations to private credit, how they access it, what direct lending yields in 2026, and the risks regulators flagged in 2025 and 2026.
- [Direct real estate versus funds for family offices: the data](https://familyofficeprimer.com/articles/direct-real-estate-versus-funds): Why real estate is the asset class family offices most often hold directly, what the allocation and sector data show, and the trade-offs against funds.
- [Deal sourcing for family offices: where the flow comes from](https://familyofficeprimer.com/articles/deal-sourcing-for-family-offices): Survey data on where family office deal flow originates, from other families and fund managers to banks and intermediaries, and why sourcing is the main gap.

## Asset allocation

- [Family office asset allocation in 2026: what the UBS data shows](https://familyofficeprimer.com/articles/family-office-asset-allocation-2026): UBS's 2026 report puts the average family office at 42% alternatives, with real estate being cut, equities edging up and 60% planning allocation changes.
- [How much family offices allocate to alternatives, and why](https://familyofficeprimer.com/articles/alternatives-allocation-family-offices): Surveys put family office alternatives at 35% to 45% of portfolios. The spread comes from sample mix and definitions; the common thread is less liquidity.
- [Regional differences in family office allocation: US to Asia](https://familyofficeprimer.com/articles/regional-differences-in-family-office-allocation): US family offices hold over half their portfolios in alternatives and 88% in North America. Asian and Latin American offices hold far more cash and bonds.
- [Private equity allocation trends among family offices to 2026](https://familyofficeprimer.com/articles/private-equity-allocation-trends): Family office private equity weights peaked at 22% in 2023 and fell to 17% by the end of 2025, with no further cut planned. Funds still outweigh direct holdings.
- [Hedge funds in family office portfolios: are they back in favour?](https://familyofficeprimer.com/articles/hedge-funds-in-family-office-portfolios): Hedge funds are 5% to 6% of family office portfolios across the main surveys. UBS's 2026 data show 6%, up from 4% in 2024, with 6% planned again for 2026.
- [Cash and fixed income: how family offices use them in 2026](https://familyofficeprimer.com/articles/cash-and-fixed-income-for-family-offices): Family offices hold 8% to 13% in cash and 11% to 17% in bonds. With policy rates near 4% and the US 10 year above 5%, bonds are earning their place again.
- [Gold, commodities and real assets in family office portfolios](https://familyofficeprimer.com/articles/gold-and-real-assets-family-offices): Gold is 2% to 3% of family office portfolios after a 44% rise in its average price in 2025. Real estate is being cut; infrastructure and gold edge up in 2026.
- [What GMO's 7-year forecast says about valuations in 2026](https://familyofficeprimer.com/articles/gmo-seven-year-forecast-and-valuations): GMO's July 2026 forecast projects negative real returns for US large caps over seven years, with Shiller's CAPE near 40, against positive returns elsewhere.
- [Rebalancing a portfolio that is 40% illiquid: methods and data](https://familyofficeprimer.com/articles/rebalancing-an-illiquid-portfolio): With 42% of the average family office in alternatives, rebalancing means ranges, cash flow steering and secondaries rather than quarterly trades. Here is how.
- [Benchmarking family office returns: what the data can tell you](https://familyofficeprimer.com/articles/benchmarking-family-office-returns): Most family offices judge success on relative performance, yet reported returns are self-reported and uneven. Here is what the surveys and peer indices show.

## People and costs

- [Family office compensation in 2026: what the benchmarks say](https://familyofficeprimer.com/articles/family-office-compensation-2026): What the Morgan Stanley, KPMG/Agreus and Heidrick benchmarks show about family office CEO, CIO and CFO pay, bonus levels and long-term incentives.
- [Hiring a family office CIO: scope, backgrounds and pay](https://familyofficeprimer.com/articles/hiring-a-family-office-cio): How to hire a family office CIO: what the role covers, where candidates come from, what the benchmarks say about pay and why some appointments fail.
- [The family office CEO role: what the job actually covers](https://familyofficeprimer.com/articles/the-family-office-ceo-role): What a family office CEO does, who they report to, how often the role is held by a family member and what the data says about pay and tenure.
- [Long-term incentives and carry in family offices: the data](https://familyofficeprimer.com/articles/long-term-incentives-and-carry-in-family-offices): How often family offices use co-investment, carried interest, deferred bonuses and phantom equity, and how the plans are structured, from the benchmark reports.
- [Outsourced CIO versus in-house: costs and trade-offs](https://familyofficeprimer.com/articles/outsourced-cio-versus-in-house): What an outsourced CIO costs against an in-house investment team, where the break-even sits by asset size and what family offices say about each model.
- [Family office staffing by size: headcount at $250m to $5bn](https://familyofficeprimer.com/articles/family-office-staffing-by-size): How many people a family office employs at different asset levels, from the compensation and benchmarking surveys, and what shapes the number.
- [Retaining non-family executives in a family office](https://familyofficeprimer.com/articles/retaining-non-family-executives): What the surveys say about retention difficulty in family offices, the tools offices use to keep senior staff and the governance factors behind departures.
- [Family members working in the family office: policies](https://familyofficeprimer.com/articles/family-members-working-in-the-office): How often family members hold family office roles, how they are paid relative to professionals and what a family employment policy usually sets out.
- [Family office operating costs: benchmarks by AUM band](https://familyofficeprimer.com/articles/family-office-operating-costs): What it costs to run a family office as a share of assets and in dollars by size band, from UBS, J.P. Morgan, Campden Wealth and the compensation reports.
- [Recruiting from banks and private equity into a family office](https://familyofficeprimer.com/articles/recruiting-from-banks-and-private-equity): Why bankers and private equity professionals move to family offices, how pay compares, where the adjustment goes wrong and what the hiring data shows.

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