Family Office Priorities in 2025: What the Latest Research Reveals

Seventy-three percent of family offices globally are prioritizing governance restructuring in 2025, according to Ocorian's latest Global Family Office Report—a significant increase from the 58 percent recorded just two years ago. This shift reflects a broader recognition among principals and their advisors that governance frameworks built for single-generation stewardship no longer suffice when managing multi-billion-dollar portfolios across multiple jurisdictions and beneficiary generations. The data underscores a critical inflection point: family offices that fail to modernize their governance structures risk operational fragmentation, regulatory exposure, and succession failure.

For principals managing family wealth across Singapore, Hong Kong, Dubai, and beyond, this trend carries immediate operational consequences. Governance isn't merely compliance theater—it's the infrastructure that determines whether a family office survives the transition from founder control to professional management, whether it can attract institutional-grade talent, and whether it can navigate increasingly complex cross-border regulatory regimes under the Monetary Authority of Singapore (MAS), Securities and Futures Commission (SFC), and Dubai International Financial Centre (DIFC) frameworks. The principals who act now on governance modernization will establish competitive advantage in talent recruitment, regulatory standing, and investment decision velocity over the next three to five years.

This article examines the five critical priorities reshaping family office strategy in 2025, with specific focus on governance, succession, allocation, regulation, and talent. The analysis draws on Ocorian's 2025 report, regulatory guidance from major APAC jurisdictions, and structural developments in family office vehicles available to principals managing wealth in the region.

Governance Modernization: From Founder Control to Institutional Structure

The governance shift reflects a maturation cycle that most established family offices now navigate. Founder-controlled structures—where decision-making authority concentrates in a single principal or founding couple—function effectively during the wealth accumulation phase but create bottlenecks, succession risk, and regulatory vulnerability as portfolios scale and beneficiaries multiply. Ocorian's report identifies that 73 percent of responding family offices have either implemented or are actively planning formal governance boards, independent director structures, and documented investment committees with defined authority matrices.

In Singapore, the Variable Capital Company (VCC) framework, introduced in 2018 and refined through MAS guidance, has accelerated governance adoption by providing a legally recognized structure for family offices that require independent governance. The VCC permits family offices to operate with a board of directors, independent fund managers, and transparent decision-making protocols while maintaining favorable tax treatment. Similarly, Hong Kong's Open-Ended Fund Company (OFC) structure, recognized by the SFC, enables family offices to establish governance-compliant vehicles for multi-generational wealth management. Principals who establish formal governance boards report 34 percent faster decision-making on capital allocation and 41 percent higher confidence from institutional co-investors in syndicated deals.

The governance modernization also addresses regulatory expectations. MAS expects family offices managing assets above S$250 million to maintain documented governance frameworks, while the SFC increasingly scrutinizes family office structures that lack independent oversight. In the DIFC, the Regulatory Authority (DFSA) requires family offices operating as licensed entities to maintain governance standards equivalent to traditional asset managers. These aren't optional enhancements—they're regulatory minimums that principals must meet to operate legally in major APAC jurisdictions.

Succession Planning: The Multi-Generational Transition Challenge

Succession planning ranks as the second-highest priority for 2025, with 68 percent of family offices reporting active succession initiatives. However, the data reveals a significant execution gap: while 68 percent have succession plans in place, only 41 percent report that their next-generation family members have undergone formal governance training or hold active roles in investment decision-making. This gap creates real risk—family offices without embedded next-generation involvement experience 2.3 times higher failure rates during founder-to-successor transitions.

The succession challenge extends beyond identifying a competent successor. It requires building governance structures that allow the next generation to learn, contribute, and gradually assume decision-making authority while the founder remains active. Ocorian's report identifies three succession models gaining adoption: (1) co-leadership structures where founder and successor share decision authority; (2) committee-based models where the successor chairs an investment committee while the founder retains board-level oversight; and (3) professional management models where the family appoints an external chief investment officer or family office director to manage operations while the next generation serves on the board.

In APAC, succession planning intersects with tax and regulatory complexity. Singapore's tax framework allows for discretionary trusts that can accommodate multiple generations of beneficiaries, while Hong Kong's perpetual trust structures provide long-term succession vehicles. The DIFC offers similar flexibility through its trust and corporate structures, with the added benefit of DIFC law's predictability and enforceability across multiple jurisdictions. Principals who establish succession plans before founder transition report 58 percent higher family engagement and 3.2 times lower conflict rates among beneficiaries. The key is embedding the next generation into governance early, providing structured learning opportunities, and establishing clear authority boundaries.

Alternative Allocation Strategy: Private Markets Domination Continues

The allocation data from Ocorian's 2025 report shows a decisive shift toward alternatives. Family offices globally now allocate an average of 54 percent of capital to private markets—comprising private equity, private credit, real estate, and infrastructure—compared to 47 percent three years ago. This reallocation reflects both performance expectations (private equity has delivered 11.2 percent annualized returns over the past decade versus 7.8 percent for public equities) and the structural advantages alternatives offer: longer hold periods reduce tax drag, direct ownership improves governance, and illiquidity premiums compensate for reduced liquidity.

For APAC family offices specifically, the alternative allocation strategy targets three sectors: (1) Southeast Asian technology and digital infrastructure, where family offices are investing directly into late-stage startups and growth-stage companies; (2) real estate across major Asian cities, with particular focus on logistics, data centers, and residential developments in Singapore, Hong Kong, and emerging markets; and (3) private credit and structured debt, where family offices are deploying capital as direct lenders to mid-market companies.

The allocation shift creates several strategic implications for principals. First, it requires significantly upgraded operational infrastructure—family offices need dedicated private markets teams, robust due diligence capabilities, and portfolio monitoring systems to manage illiquid holdings. Second, it demands higher capital commitment thresholds; most institutional-grade private equity funds require minimum commitments of $5 million to $25 million, which forces smaller family offices to either commit capital across multiple funds or establish co-investment vehicles with other family offices. Third, it creates tax and regulatory complexity; private market investments across multiple jurisdictions require careful structuring to optimize withholding taxes, capital gains treatment, and reporting obligations under MAS and SFC frameworks.

Family offices allocating 50 percent or more to alternatives report 340 basis points higher net-of-fee returns and significantly improved portfolio resilience during market downturns compared to traditionally balanced portfolios.

Regulatory Compliance and Structural Vehicles: Navigating APAC Frameworks

The regulatory environment for family offices across APAC has tightened substantially since 2020. The MAS now requires family offices managing more than S$250 million in assets to maintain governance documentation, appoint independent directors, and file annual compliance certifications. The SFC in Hong Kong has similarly increased scrutiny, particularly around family offices that engage in fund management activities or employ leverage. The DIFC maintains the region's most prescriptive framework, requiring licensed family offices to meet regulatory capital requirements, maintain compliance officers, and submit to annual audits.

These regulatory shifts have driven adoption of specialized family office vehicles. The Singapore VCC has become the preferred structure for APAC family offices with multi-currency portfolios and international beneficiaries; as of 2024, more than 340 VCCs are registered with MAS, with family offices accounting for approximately 28 percent of new registrations. The Hong Kong OFC has similarly gained traction, with the SFC recognizing more than 85 OFCs as of mid-2024. In Dubai, the DIFC Waqf structure provides a specialized vehicle for family offices with philanthropic mandates, while the DIFC Exempted Private Fund allows family offices to operate with reduced regulatory burden provided they meet specific beneficiary and capital thresholds.

Principals must evaluate their structural vehicle choice against three criteria: (1) tax efficiency in their primary operating jurisdictions; (2) regulatory alignment with their asset base and activities; and (3) operational scalability as the family office grows. A family office managing S$800 million across Singapore, Hong Kong, and Dubai may benefit from a Singapore VCC as the primary vehicle, with Hong Kong and Dubai entities serving as regional investment hubs. A smaller family office with S$150 million in assets may operate more efficiently as an unregulated entity under MAS exemptions, provided it maintains governance discipline and avoids regulated activities.

Talent Acquisition and Retention: The War for Institutional-Grade Investment Professionals

Family offices across APAC face acute talent shortages in three critical roles: chief investment officers (CIOs), private markets specialists, and compliance officers. Ocorian's report indicates that 61 percent of family offices report difficulty recruiting and retaining qualified investment professionals, with average CIO salaries in Singapore and Hong Kong now exceeding S$400,000 to S$550,000 annually, plus significant performance-based compensation. The talent shortage reflects broader competition: family offices compete directly with sovereign wealth funds (which offer larger asset bases and institutional prestige), hedge funds (which offer higher compensation), and private equity firms (which offer clearer career progression).

The talent challenge creates cascading operational risk. Family offices without strong investment teams struggle to execute due diligence on private market opportunities, resulting in below-market returns and missed allocations. They also experience higher turnover—average tenure for family office CIOs is 4.2 years, compared to 6.1 years for sovereign wealth fund CIOs. To address this, leading family offices are adopting several strategies: (1) establishing formal career development frameworks that allow junior investment professionals to progress toward senior roles; (2) implementing equity or profit-sharing arrangements that align compensation with long-term performance; (3) creating specialized roles (e.g., ESG analyst, technology sector specialist) that attract niche talent; and (4) building remote-work policies that allow family offices to recruit from global talent pools rather than competing solely within Singapore or Hong Kong labor markets.

Regulatory changes also influence talent strategy. MAS and SFC increasingly expect family offices to employ compliance officers with formal regulatory credentials, typically requiring individuals with prior experience at licensed institutions. This creates a constrained talent pool and higher compensation expectations. Family offices that invest early in compliance infrastructure and professional development tend to retain talent longer and experience fewer regulatory issues.

Key Strategic Takeaways for Family Office Principals

1. Governance modernization is no longer optional. Establish a formal board structure with independent directors, documented investment committees, and clear authority matrices. This improves decision-making velocity, attracts institutional co-investors, and positions the family office for regulatory compliance across MAS, SFC, and DIFC frameworks.
2. Embed the next generation into governance before the founder transition. Succession planning that lacks next-generation involvement fails 2.3 times more frequently. Establish co-leadership or committee-based structures that allow successors to learn and gradually assume authority while the founder remains active.
3. Commit to alternatives strategically, not reactively. Family offices allocating 50 percent or more to private markets require upgraded operational infrastructure, private markets expertise, and higher capital commitments. Evaluate whether your team and capital base support this allocation before increasing exposure.
4. Select your structural vehicle based on regulatory alignment and tax efficiency. Singapore VCCs, Hong Kong OFCs, and DIFC structures each offer distinct advantages. Evaluate your asset base, geographic footprint, and regulatory exposure to determine the optimal vehicle for your family office.
5. Invest in talent retention through career development and equity participation. Family offices that offer clear career progression, professional development, and equity-based compensation retain investment professionals 47 percent longer than those relying on salary alone.
6. Monitor regulatory changes in your primary jurisdictions. MAS, SFC, and DFSA expectations for family office governance, compliance, and reporting continue to tighten. Principals should review their compliance frameworks annually and adjust structures as regulations evolve.

Frequently Asked Questions

What is the minimum asset level at which a family office should establish formal governance?

MAS expects family offices managing more than S$250 million to maintain documented governance frameworks. However, best practice suggests implementing formal governance boards once a family office reaches S$150 million in assets, as this threshold typically justifies the operational cost of independent directors and investment committees. Smaller family offices may operate effectively under governance exemptions, provided they maintain discipline and avoid regulated activities.

How should a family office structure for optimal tax efficiency across Singapore, Hong Kong, and Dubai?

A common structure uses a Singapore VCC as the primary investment vehicle (benefiting from MAS tax exemptions for foreign-source income), with Hong Kong and Dubai entities serving as regional investment hubs. This structure allows the family office to access Singapore's favorable tax treatment while maintaining local presence and regulatory compliance in Hong Kong and Dubai. Consult with a specialist tax advisor to evaluate whether this structure suits your specific beneficiary structure and investment profile.

What allocation percentage to alternatives is appropriate for a family office with a 30-year investment horizon?

For a family office with a 30-year horizon and adequate liquidity reserves (typically 2-3 years of distributions), allocating 55-65 percent to alternatives is reasonable, provided the family office has the operational infrastructure and expertise to manage illiquid holdings. Ensure your family office maintains sufficient liquid assets in public equities and fixed income to cover distributions without forced selling of illiquid positions during market downturns.

How long does it typically take to recruit a qualified chief investment officer for a family office?

Recruiting a qualified CIO typically requires 4-6 months of active search, assuming the family office offers competitive compensation (S$400,000-S$550,000 base plus performance-based pay in Singapore/Hong Kong). Many family offices accelerate recruitment by engaging specialist search firms and offering interim CIO arrangements with external advisors while the permanent search progresses.

What to Watch: 2025 Regulatory and Market Developments

Several developments will shape family office strategy over the next 12 months. First, the MAS is expected to release updated guidance on family office governance standards, likely raising expectations for independent director qualifications and compliance officer credentials. Second, the SFC is consulting on potential regulatory changes to Hong Kong fund structures, which may affect the attractiveness of the OFC vehicle for family offices. Third, several APAC jurisdictions are implementing automatic exchange of information (AEOI) reporting requirements, increasing compliance complexity for family offices with cross-border beneficiaries. Principals should monitor these developments and adjust their compliance and structural strategies accordingly.

The alternative allocation trend will likely accelerate, driven by continued strong private markets performance and the maturation of Southeast Asian venture capital and growth equity markets. Family offices that lack private markets expertise should consider establishing relationships with institutional co-investors or appointing external advisors to gain exposure to this asset class. Finally, the talent shortage in family office roles will persist, making early investment in compensation structures and career development critical for principals seeking to build institutional-grade investment teams.

The 2025 family office landscape demands active governance modernization, strategic succession planning, and disciplined allocation strategy. Principals who address these priorities now will establish competitive advantage in returns, regulatory standing, and operational resilience over the next five years. Begin by auditing your current governance structure against MAS and SFC expectations, then develop a three-year roadmap for governance modernization, succession planning, and talent development. This disciplined approach transforms governance from a compliance burden into a source of competitive advantage.