Is Your Family Office Ready for Private Fund Structures? How Family Offices Are Using Funds, Governance and Succession Planning to Evolve

For many family offices, investing beyond vanilla portfolios has traditionally been shaped by investors’ areas of expertise: the family business, a trusted network and direct opportunities where the principal has deep experience and conviction.

That model remains important, but is no longer the whole story. At a recent seminar, “Wealth, Protection, Collaboration and Succession: Private Funds for Family Offices,” colleagues from JTC’s Private Office and Funds teams and Farrer & Co came together to explore a question we are hearing more often: how can private fund structures help family offices invest more effectively for the future?

What made the discussion so interesting was that it was not really about “funds” in the narrow technical sense. It was about something much broader: how families are thinking about wealth, control, succession planning, governance and opportunity in a more complex world.

Nic Arnold, Head of JTC Private Office UK commented:

‘The reason we came together to discuss this topic with our clients is that we are seeing a need for a more collaborative approach. Families don’t want off the shelf products, they want fund structures that can fit into values-based long-term strategic private wealth planning’.

Why Family Offices Are Adopting Fund Structures to Manage Growth and Succession Planning

One of the clearest themes from the session was that family offices are evolving quickly.

Many still have a strong connection to a core operating business or a history of direct investing. But today, families are looking at a wider range of investment functions for their family office fund structures across asset classes such as private credit, infrastructure, venture capital, co-investments and specialist strategies that often sit outside the traditional family office comfort zone.

Andy Peterkin, Funds and Financial Services Partner at Farrer & Co commented:

‘Tax changes are prompting many families to rethink legacy and wealth transfer. Where the next generation is involved but not in control, fund structures can be a flexible way to separate economics from control.’

That shift naturally raises a bigger question: how do you access those opportunities in a way that still feels joined-up, controlled and aligned with the family’s long-term goals?

Simon Gordon, Head of Sales, Institutional Capital Services at JTC added:

‘For many, private fund structures are becoming part of the answer. They can provide a more organised way to pool capital, centralise oversight and create a framework that works not just for one principal, but for a wider family group over time.’

Fund Structures for Succession Planning: Separating Ownership From Control

Another point that really stood out was how closely this conversation is tied to succession planning.

Tom McGinness, Group Head of JTC Private Office commented:

‘When we talk about dynastic planning, we are not just talking about tax or inheritance in the narrow sense. We are talking about how families create a lasting legacy – how they preserve and grow wealth, reduce risk and put in place fund structures that can survive generational change.’

Families are navigating changing tax rules, changing expectations and, in many cases, changing family dynamics. The next generation may still be economically involved, but not necessarily in the same way as the founder generation. They may not want to “run the shop” but they do want visibility, assurance, participation and a sense that the structure reflects their values.

Georgina James, Partner at Farrer & Co added:

‘That is one reason fund structures are getting more attention. They can separate ownership from control in a way that is often very useful. A core group can retain responsibility for investment decisions, while a broader group of family members can participate economically in a structured and transparent way.’

The Next Generation and Wealth Diversification: Aligning Values in Family Office Fund Structures

This was another strong theme from the discussion: the next generation is often approaching wealth differently.

In many cases, they are more values-led. They are more focused on sustainability, impact and ESG considerations. Sectors like technology, AI and data have piqued their interest, and so they could be less inclined to keep all family wealth concentrated around one legacy business. They are interested in prioritising wealth diversification, often taking a different approach than older generations.

This does not mean abandoning the family’s history, but it does mean broadening the investment conversation.

A well-structured family office fund can help create space for this. It can support diversification while still keeping the family aligned around a common vision. Younger family members can engage more meaningfully with the family’s capital, not just as passive beneficiaries, but as informed participants.

Family Office Governance: Creating Clarity and Trust in Fund Structures

The structure itself is only part of the story – what really makes these arrangements work is governance.

That means clear decision-making, clear expectations and clear rules around participation. Understanding who can hold interests, how transfers work, liquidity terms and how incapacity is handled, is essential to creating a framework that lasts.

These are not always easy conversations, but they are essential ones. The families that do this well tend to be the ones that create a sense of fairness, clarity and trust around the structure. Not necessarily equality in every respect, but a framework people understand and believe in.

Institutional-Grade Fund Structures: Co-Investments and Complex Family Office Models

One of the most interesting parts of the seminar was the discussion around how family offices are starting to look more like institutional investors in some respects.

There is growing interest in co-investments, deal-by-deal structures, bespoke carry arrangements and in vehicles that can support different groups of family members in different ways. Many family offices are moving away from passive models and building more direct relationships with managers and general partners.

As soon as a family office starts operating in this way, the demands on reporting, liquidity management, tax compliance and operational infrastructure increase significantly. Families need service providers and systems that can support that sophistication, while still understanding the very personal nature of family office relationships.

Jurisdiction Strategy for Family Office Funds

Another practical takeaway was that jurisdiction should never be an afterthought.

Kobus Cronje, Regional Head of Channel Islands – Institutional Capital Services at JTC noted:

‘For some families, the starting point has historically been: where is our trust structure already based? But once you move into the fund space, the analysis becomes broader. You need to think about the location of the assets, where family members and decision-makers are based, tax neutrality, regulatory treatment, substance requirements and future flexibility. That becomes even more important if there is any ambition to expand into co-investment structures or bring in third-party capital over time. In other words, the right jurisdiction is not just an administrative choice, but a strategic one.’

The Future of Family Offices: Why Fund Structures Are an Attractive Option

Perhaps the biggest takeaway from the event was that this does not feel like a passing trend.

Yes, tax changes and regulatory developments are part of the backdrop. But the bigger forces are deeper than that: the great wealth transfer, the global mobility of capital, the increasing sophistication of family offices, and the growing desire to balance control, flexibility and long-term alignment.

Private fund structures are not right for every family office, and there is no one-size-fits-all answer. But for many families, they are becoming an increasingly useful tool not just for investing, but for organising wealth in a way that supports protection, collaboration and succession planning.

To find out how JTC can support your family office with fund structuring, governance and long-term succession planning, get in touch with our team.

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