How Smaller Fortunes Can Use Family Offices to Build Lasting Wealth

Once reserved for billionaires and old-money estates, the family office — a private structure for managing investments, estates, and succession — is undergoing a quiet revolution.

What began as the domain of the Rockefellers and Rothschilds is now being reimagined for entrepreneurs, founders, and even upper-middle-class families seeking to professionalize their approach to managing and preserving wealth.

“The idea that one must have billions to justify a family office is rooted in outdated thinking,” María Eugenia Mosquera, Head of Wealth Planning Key Clients & Family Office Services at Julius Baer, wrote in a blogpost on Friday.

“Similarly, the belief that such structures are overly complex or only relevant to dynastic wealth overlooks just how adaptable the modern family office model has become,” she said.

“Often, the real issue isn’t feasibility, it’s not knowing where to begin.”

Smaller fortunes are getting in on the act

A global survey by Julius Baer and PwC — covering 2,485 wealth management and family office experts across Europe, Asia, the Middle East, and Latin America — found that 41% of ultra-high-net-worth respondents cited cost as the main barrier to setting up a single-family office, followed by management complexity and the belief that their wealth wasn’t substantial enough.

But Mosquera said those concerns are often misplaced.

With the rise of technology, regulation, and global mobility, new models have emerged that allow smaller fortunes to access the same level of professionalism as billionaires, she said.

“Some families prefer to keep control of areas like philanthropy or governance, while others prioritize access to specialized expertise via external partners,” she wrote. “In reality, most family offices adopt a hybrid model, combining internal oversight with outsourced services such as legal, wealth planning, or investment advisory.”

How smaller fortunes can start their own family office

You don’t need dynastic wealth to take a family-office approach, according to Julius Baer.

The same principles that once served Renaissance estates can be applied by today’s entrepreneurs, business sellers, and globally mobile families — at a fraction of the cost.

1. Start small and evolve

Mosquera advises families to view the process as “a phased, thoughtful evolution.”

Those planning a business sale or expecting liquidity can begin by formalizing what they already do — setting clear governance, defining investment principles, and establishing communication routines.

A single trusted advisor or accountant can act as the nucleus before more roles are added.

2. Use hybrid or virtual models to stay lean

The Julius Baer report defines a Virtual Family Office (VFO) as “ideal for globally mobile families,” using “digital platforms and remote teams to deliver services flexibly across borders.”

This model gives smaller fortunes the same strategic control, minus the heavy fixed costs of staff and office space.

3. Outsource the complex — keep the core in-house

As Mosquera puts it, “This depends on the family’s priorities, the complexity of their wealth, and how much operational infrastructure they want to oversee.”

Families can outsource investment, tax, and legal matters while keeping philanthropy, governance, and education in-house — a structure that balances control with efficiency.

4. Choose jurisdiction wisely

Location influences “everything from stability and regulatory clarity to access to talent, privacy, and lifestyle,” Mosquero wrote.

While Switzerland, Singapore, Hong Kong, and Dubai lead as global hubs, Mosquera notes that many families now operate virtually — coordinating data, advisors, and decision-making digitally across continents.

5. Anchor everything in values

“A thoughtfully designed family office often becomes the cornerstone for long-term wealth preservation and successful intergenerational transfer,” said Thomas Frauenlob, member of the Global Wealth Management Committee and Co-Head Region Western Markets & Switzerland at Julius Baer.

“When anchored in these elements, it offers far greater value than generic, one-size-fits-all solutions,” Mosquera added.

“There’s no universal blueprint,” Mosquera said. “Instead, the right approach is thoughtfully curated to reflect each family’s unique needs, preferences, and aspirations.”