How does a multifamily office plan for succession among its own senior leaders?
A multifamily office treats leadership succession as an ongoing operating process. Its governing body defines each role, identifies internal and external candidates, supports development, documents interim coverage, and agrees on transition steps. The aim is continuity, clear accountability, and selection based on capability.
Start before a vacancy appears
Begin succession planning while current leaders are performing well. Waiting for retirement, illness, or resignation can compress the decision process and increase disruption. The International Finance Corporation recommends a formal plan that preserves the skills and leadership needed for key positions when an incumbent leaves. It also recommends starting early and giving the governing body an active role in overseeing the plan. (International Finance Corporation, Family Business Governance Handbook.)
List the roles that would materially affect clients, reporting, investment operations, administration, technology, or family relationships if left open. Review the plan at least annually and after major changes in ownership, staffing, or services.
Build a candidate pipeline
Define the capabilities required for each role before discussing candidates. Assess internal professionals against those standards while keeping external recruiting options open. The IFC recommends selecting the most competent person, whether family or non-family, and using career development, education, feedback, and practical experience to prepare potential successors. (International Finance Corporation, Family Business Governance Handbook.)
Give likely successors assignments that demonstrate judgment under supervision. Document performance expectations and development needs. Candidates should understand the office’s service standards, decision rights, risk controls, and relationships with family members and outside advisers. If no internal candidate meets the standard, prepare for an external search.
I think that, one of the most expensive things is betting on the wrong person to run your family office or allocating money to the wrong person.
Document the handoff and test it
A written plan should identify interim coverage, approval authority, communication responsibilities, and access to essential records. It should also state how the outgoing leader will participate after the handoff. The IFC recommends setting a transition date and defining the former leader’s continuing role, such as adviser or board member. (International Finance Corporation, Family Business Governance Handbook.)
Deloitte’s family office succession workshop emphasizes knowledge transfer, onboarding, stakeholder relationships, and collaboration between the outgoing executive and successor. (Deloitte, Family Office Succession Workshop.) Review the plan with the governing body and senior team, then run a tabletop exercise so everyone knows who acts if a leader becomes unavailable without notice. Keep the document current and confidential, with access limited to people who need it.
Related guides
- Family Governance With a Multifamily Office
- Access to Alternatives Through an MFO: A Practical Guide for Families
- Cross-Border Families and Multifamily Offices: A Practical Guide