How billionaire family offices run day to day

Built on Chapter 3 of The Single Family Office by Richard C. Wilson. Full chapter text: FamilyOffices.com.

A family office is not only an investment team. It is a business, with payroll, legal duties, taxes, staff issues, and surprises. The families who run them best treat them that way. Here is what the daily work looks like and the habits that keep it under control.

Who is on the team

A typical single family office has a CEO, who is often a family member, a CIO, and one or two analysts. I strongly suggest having at least a part-time CEO to run the business side, not just a sharp CIO doing everything. Investing well and running an organization are different skills.

What the team does all week

In the book I listed the core daily work. In plain terms:

Keeping the office itself running, from staff issues to making sure there is cash for payroll.
Sorting incoming deals and fund pitches. Well-known offices face a flood of meetings and email. They need a fast way to screen, a polite way to decline, and junior staff to look at the promising ones.
Running real diligence so every investment fits the family's mandate and avoids fraud and weak managers.
Watching the markets and the portfolio. Direct deals rarely need daily attention unless the office has a dedicated direct investing lead.
Talking with peer families about what works. Teams that skip this go stale.
Producing accounting and tax records, plus regular reports to the family. Good reporting often needs costly or custom software.
Coordinating outside tax and legal advisors, along with insurance and investment consultants, on deals in progress.

Keep costs tight early

Until the office is producing steady returns, I recommend running lean. You will be pitched endless products and services described as essential. Many of those sellers are paid on commission. Hold off on pricey research subscriptions, showy office space, and other extras until the office has proven itself.

Most well-run family offices find providers through referrals from peers instead of cold calls and spam. That is how our own first family office relationships began years ago, by offering value first.

Pay that does not lock you in

Pay is one of the easiest places to make a long-term mistake. After a great year, staff may ask for big raises. Base pay is hard to cut, and contracts often run several years. If the next year is weak, the office is stuck with costs set at a peak.

The approach I prefer is a fair base salary with most increases coming through bonuses tied to set goals. Bonuses can rise and fall with results. If you already agreed to high fixed pay, talk openly with the person about a structure that would let them earn more when the office does well.

Watch the numbers together

Whatever the family's role, the key people should meet regularly for a candid look at the office's finances. If the principal has no interest in the numbers, a trusted staff member or advisor should own them and report back.

Where the office sits

Billionaire families make very different choices on space. One very wealthy family I know bought a large former church. Another runs its office from a ranch. Many use regular office space.

What matters most is being close to the businesses the family owns, near an airport, and within reach of co-investors and deal targets. The office and team also shape how seriously other families and recruits take you.

Privacy and protection

Because family offices handle sensitive information, basic protections belong in the operating plan from day one. Have staff sign confidentiality agreements, keep an employee handbook and ethics policy, carry the right insurance, and use secure systems for documents and reporting.

Grow or preserve?

Every office has to decide whether its main goal is growing the family's wealth or protecting it. That choice shapes who you hire, how you run, and how much you spend on overhead.

What to take from this

Put a CEO, even part time, in charge of running the office as a business.
Build a fast screen for incoming deals and pitches.
Keep overhead lean until results are steady.
Tie raises to performance bonuses, not permanent base pay.

This page is general information, not legal, tax, or employment advice. Speak with qualified advisors about staffing and compliance.

Questions and answers

What does a family office team look like? Often a CEO, a CIO, and one or two analysts.

What takes up most of a family office's time? Screening deals and doing diligence, then reporting and running the office itself.

How should family office staff be paid? I prefer a fair base salary with increases mainly through performance bonuses.

Where do billionaire family offices locate? Anywhere from regular offices to a ranch or a former church. Being near the family's businesses and an airport matters most.