What Roles Does a New Family Office Hire First?
Short answer. A new family office should hire for its clearest operational or investment needs, often starting with a senior leader and a specialist whose skills fill a real gap. Some families outsource functions while the in-house team stays lean. Set priorities and responsibilities first, then hire for fit, trust, and demonstrated expertise.
A new family office should hire for its most important defined needs, not simply build a large team. In my experience, the right first roles depend on the family's objectives, investment activity, operating businesses, and the work that outside providers can cover. Many offices need a senior person to coordinate the work, then add a specialist in the area where the family needs direct expertise.
Clarify the Work Before Hiring
Start by listing the office's responsibilities. These may include investment oversight, evaluating deal flow, reporting, accounting coordination, administration, and support for operating businesses. Decide which functions require in-house attention and which can be handled by outside firms. A lean office may outsource accounting, reporting, IT, or investment functions while keeping a small core team focused on the family's priorities.
An average-sized team described in my book The Single Family Office includes a CEO, often a family member, a CIO, and one or two analysts or associate-level staff. This is a model, not a required staffing chart. Some families may need a part-time executive to coordinate the team; others may need an investment specialist or operations professional first. Learn more about starting with one employee and the virtual family office model.
Choose Specialists for Real Gaps
Before making an offer, ask whether the candidate will fill a need that is not already covered. A professional may bring investment, legal, operational, or reporting expertise, but the family should be able to explain where that expertise will be used. I have found it better to hire for a clear specialty and expand responsibilities over time than to rely on a person who claims to be a generalist in every area.
Trust also matters. Family office employees may have access to sensitive information and work closely with family members. Check references and background, and assess whether the candidate can exercise discretion and work within the family's values. Technical skill is necessary, but it does not replace judgment or a strong fit with the office's objectives.
Keep the Team Proportionate
Senior hires can be expensive, so compare the cost of a full-time position with part-time or outsourced support. A family may not need every specialist on payroll throughout the year. Technology, accounting, or compliance work may be obtained through an outside firm, depending on the office's needs. The tradeoff is that outsourcing requires careful provider selection and can affect privacy and the speed of decisions.
For every position, set out the role, decision rights, expected contribution, and reporting line. A new employee should either contribute to a defined area or provide meaningful relief from a burden on the family. Use a business plan to connect those positions to the office's purpose. The family office business plan and overhead management are useful places to continue planning.
In my experience, it is better to hire a specialist and gradually expand that person's role to take on more general responsibilities.
Sources: The Single Family Office. Informational only, not financial, legal or tax advice.