Running a Family Office Under $100M

You've exited. You have $20M, $50M, maybe $100M sitting there. Congratulations—you've won the first game. Now comes the more challenging part: not losing it.

Most founders obsess over building their companies but give almost no thought to managing what comes after. Then suddenly you're dealing with tax bills in multiple countries, investment opportunities you don't understand, estate planning nightmares, and the creeping fear that one bad decision could wipe out years of work.

A family office solves this. It's the infrastructure layer for your wealth. And contrary to what private banks will tell you, you don't need $500M to make it work.

Four types of founders

Before we get into structures, figure out which category you're in. This determines everything else.

The entrepreneur who's still playing. You sold your company, but you're not done. You want direct access to early-stage deals, you have industry connections, and you're comfortable with risk. Your family office needs to support active investing, not just wealth preservation.

The business owner who wants safety. You built something valuable, sold it, and now you want to protect it. Conservative strategies, proven approaches, and professional management matter more than hitting another home run. You need structure and discipline because your risk tolerance has permanently shifted.

The operator with embedded wealth. Your family office is basically an extension of your operating business. You're investing in adjacent opportunities while most of your focus stays on the main company. This works until you want to fully separate, which creates complications you haven't thought through yet.

The sophisticated wealth manager. You're already running a tight operation with a CIO, clear investment thesis, and institutional-grade processes. Your challenge is efficiency at scale—getting better returns per dollar spent on overhead.

Knowing where you fit changes the decisions you make. An entrepreneur playing in venture deals needs different infrastructure than someone focused on preservation.

Three models, three trade-offs

Every family office falls into one of these categories.

Single-Family Office

This is your own company dedicated entirely to managing your family's wealth. You hire the staff, you make all decisions, and nobody else's interests matter.

You need at least $150M for this to make sense, probably more. Annual costs run 1-2% of assets, sometimes higher. On $100M, that's $1-2M per year for salaries, office space, systems, legal, and compliance. Setup alone can hit $200K.

The benefit is total control. Your team answers only to you. Complete privacy. Every decision is customised to your situation. No conflicts.

The problem is cost. At lower wealth levels, those fees eat your returns. Most founders under $200M can't justify it.

Multi-Family Office

You join a firm serving multiple wealthy families. They provide the infrastructure, you share the costs.

The entry point is usually around $30M. You'll pay roughly 0.3-0.7% for investment management plus fees for other services. All-in might be $500-700K annually for a family with $100M.

You get professional expertise, established systems, and proven processes without having to build anything yourself. The firm aggregates client assets to access better deals. Setup is minimal—you're joining something that already exists.

The downside is shared attention. You're one of many clients. If someone with $500M needs help, guess who gets priority? Less customisation than running your own office.

Virtual Family Office

Minimal internal staff, everything else outsourced. You might have one person coordinating—a fractional CFO or sharp generalist—while specialists handle taxes, legal, investments, and everything else. Digital tools connect the pieces.

This can run under 1% of assets annually. For $50-100M, total costs might be $200-500K. Low fixed overhead, costs scale with usage. High flexibility—you can swap providers if they underperform.

The catch is coordination. Someone needs to manage all the relationships and ensure nothing falls through the cracks. Usually, that someone is you, at least initially. If you're not organised or tech-comfortable, this model creates chaos.

Think of it this way: A Single-Family Office is owning your infrastructure. A Multi-Family Office is renting premium shared infrastructure. Virtual Family Office is assembling infrastructure from components.

What this actually costs

Single-Family Office math: $1-2M annually on $100M in assets, possibly more. You're covering full-time salaries for quality people, office overhead, technology, professional fees, and compliance. Plus $100-200K to set everything up initially.

Multi-Family Office math: $500-700K annually on $100M for comprehensive service. Investment management is 0.3-0.7% of assets, and additional fees for tax work and estate planning. Minimal setup costs.

Virtual Family Office math: $200-500K annually on $50-100M. Varies based on what services you actually use. Very low fixed costs, almost everything is variable.

The key question: Does the infrastructure generate more value than it costs? That value might be tax savings, higher investment returns, reduced risk, or your time back. If you're spending 1.5% of assets annually and can't point to clear value creation, something's wrong.

Below $200M, most founders choose a Multi or Virtual model. Better economics, fewer headaches, easier to adjust as needs change.

Where to set this up matters

Jurisdiction affects your taxes, legal protections, operational costs, and privacy. This decision can save or cost you millions.

United States (Delaware, Florida, Wyoming, Texas): Strong legal systems, proven asset protection, no state income tax in certain states. But if you're a U.S. citizen, you face worldwide taxation regardless of where you live. FATCA reporting means limited privacy. Choose this if you're staying in the U.S. or value American legal protections above tax efficiency.

Singapore: Zero capital gains tax, tax incentives for family offices (Section 13O/13U programs), political stability, good access to Asian markets. Growing ecosystem of sophisticated operators. Not cheap to run, and you need real substance there—actual operations, not just a mailbox. Minimum AUM requirements apply. Good option if you have Asia exposure or want a respected jurisdiction with real tax benefits.

UAE (Dubai/DIFC): Zero income tax, zero capital gains tax. Easier to establish substance than Singapore, perfect time zone for global operations. Rapidly growing family office ecosystem with improving infrastructure. Regulatory framework is newer and still evolving. Some reputation considerations depending on your network. Works well if you want a lifestyle combined with legitimate tax benefits.

Switzerland: Centuries of wealth management tradition, extreme political stability, deep expertise. High operating costs—among the most expensive globally. Privacy protections aren't what they used to be due to international transparency requirements. Makes sense above $200M if you value stability and sophistication over cost optimisation.

Caribbean (Cayman, BVI): Tax neutrality, privacy, flexible structures. Good for holding companies and trusts. Less good for operational offices due to limited infrastructure. Some partners and banks view these jurisdictions skeptically. Better as part of a multi-jurisdictional strategy than a standalone solution.

Many founders don't pick just one. A common setup: an investment holding company in Singapore for tax efficiency, a trust in Cayman for asset protection, and an operational presence in Dubai or the U.S., where you actually live.

The structure needs to make sense for how you operate. Moving to Singapore purely for tax benefits when you hate living there is stupid. Design something that works with your life, not against it.

What a family office actually does

Family office isn't just a fancy term for investment management. It's a comprehensive infrastructure for your financial life.

Investment management is the core. Asset allocation strategy, manager selection or direct deals, due diligence, performance reporting, and diversification away from your concentrated position. This is where wealth grows or shrinks, so getting it right matters more than anything else.

Tax planning often generates the highest ROI. Multi-jurisdictional strategy, efficient structures, compliance across entities, and annual return coordination. Good tax planning easily saves 2-3% of net worth annually. On $100M, that's $2-3M every year. This compounds faster than most investment returns.

Legal and succession planning protect what you've built. Estate planning, entity management, succession strategy, asset protection, cross-border complexity. Without this, your heirs could lose 40-50% to estate taxes. Family disputes destroy more generational wealth than bad investments.

Philanthropy management matters if you want to give strategically. Charitable vehicles, giving strategy, recipient due diligence, impact monitoring, and family involvement. Done right, it's as rewarding as building your company while offering tax benefits.

Family governance prevents the "shirtsleeves to shirtsleeves in three generations" problem. Most family wealth doesn't survive to the third generation. Not because of bad investments—because of bad family dynamics. Structure family meetings, develop governance processes, educate heirs without ruining them, and manage family politics before they explode.

Cybersecurity is now the top risk for most family offices. Securing communications, protecting financial data, safeguarding accounts, managing IT systems, protecting crypto assets. You can do everything else right, but if someone compromises your accounts, you're facing years of problems.

Lifestyle and concierge services (property management, household staff, travel coordination, luxury asset management) matter more at higher wealth levels. Under $100M, don't prioritise this. Focus on financial fundamentals first.

Start lean, add complexity strategically

You don't need comprehensive services from day one. If you're under $200M, start with three things: investment diversification, tax planning, and estate structuring. Everything else comes later.

Begin with a Virtual Family Office model. Get the foundations right. Scale up as wealth grows and needs become more complex. Apply the same principles that worked in your startup—lean operations, clear metrics, iterate based on results.

Real challenges you'll face

Weak governance. Most family offices lack formal decision-making processes. This is ironic for tech founders coming from companies with structured governance. Even if you're the only decision-maker today, document how decisions get made and what your principles are. Your family office needs to outlive you. When multiple family members are eventually involved, this foundation becomes critical.

Create a simple charter—5-10 pages outlining philosophy, decision-making, and key policies. Review it annually. This feels like bureaucratic overhead until you need it.

Rising operational costs. Personnel represents 45-65% of family office expenses. You're competing against hedge funds and banks for talent. They can pay more.

Solution: hybrid staffing. Keep core functions in-house (maybe one great coordinator), outsource specialised expertise. For your first hire, consider a fractional CFO at 3 days per week rather than full-time overhead. Test before committing.

Limited access to good deals. The best alternative investments—pre-IPO opportunities, early-stage ventures, infrastructure projects—go to insiders with relationships and track records. If you're new to the family office world, you're starting from scratch.

This is where being a tech founder helps. You have industry expertise and a network that traditional family offices don't have. Leverage it. Build direct relationships with top VC and PE firms. Become a value-add investor, not just a capital provider. Angel invest or join syndicates to build a track record. Access follows expertise.

Dedicate 20% of investable capital to direct deals in your domain. Use your advantage.

Underutilising insurance. Many family offices don't fully use insurance products for wealth transfer and estate planning across multiple jurisdictions. Insurance is complex and poorly explained by most advisors.

Work with specialised insurance advisors (not salespeople) who understand sophisticated structures available to high-net-worth families. Certain insurance products provide tax-advantaged wealth transfer, creditor protection, and privacy that other vehicles can't match.

Get a second opinion on your estate plan from an insurance specialist. You'll likely discover solutions your current advisor never mentioned.

Outdated technology. Many family offices run on legacy systems because "that's how we've always done it." They collect mountains of data but can't consolidate, analyse, or derive insights.

Use modern cloud-based platforms built for family offices. Don't build custom systems—expensive and unnecessary. Tools like Addepar for portfolio aggregation, standard cloud platforms for everything else.

As a tech founder, this should be natural. Apply the same thinking to wealth management that you used in your business.

Who can help

Five types of providers serve family offices.

Integrated banks (Goldman Sachs Private Wealth, UBS, J.P. Morgan) offer comprehensive services under one roof. Convenient, but watch for conflicts of interest—they profit when you use their products. Make sure recommendations are actually best-in-class.

À la carte banks provide specific services rather than end-to-end solutions. Good for families with targeted needs but you'll need to coordinate multiple providers yourself.

Insurers offer sophisticated insurance solutions for wealth transfer and multi-generational planning. Particularly valuable for complex international situations. Get independent advice before committing to expensive policies.

Multi-Family Offices (Bessemer Trust, Pitcairn, Rockefeller Capital) provide institutional-quality management without the need to build your own infrastructure. Usually requires $25-50M minimum. Make sure you're big enough to get attention.

WealthTechs (Addepar, Altruist, Ridgeline) offer technology-driven solutions at a lower cost through automation. Good for tech-savvy families comfortable with digital-first approaches. Technology enables expertise, doesn't replace it.

Alternatives to a single family office

Not ready for a full setup? These provide many of the same benefits:

Private banks with family office services function as your CFO without the overhead. Major banks offer specialised services for ultra-high-net-worth clients.

Fractional CIO handles investments as a bespoke mandate while keeping other financial needs separate. You get investment expertise without comprehensive overhead.

External trust companies handle fiduciary matters without you having to build structures from scratch. Established firms in Delaware or South Dakota provide estate planning, trust administration, and asset protection.

Family office platforms offer consolidated reporting and access to vetted providers without having to build from scratch. Think curated marketplace.

The personal CFO approach means hiring one exceptional finance professional who coordinates all external matters and serves as your single point of contact. Essentially a one-person Virtual Family Office.

These work as stepping stones toward something more formalised, or they might be sufficient permanently if simplicity matters most.

Critical success factors

Cost management. Target 1% of assets or less in total operating costs. Start small, scale gradually, and leverage technology to avoid overstaffing. If you're spending more than 1% and can't clearly articulate equivalent value creation, fix it.

Privacy and security. Make cybersecurity a top operational priority. Encrypted communications, secure file sharing, regular security audits, and hardware security keys for critical accounts. At minimum: password manager, 2FA everywhere, Signal for sensitive communications, and encrypted document storage. Many family offices now see this as their biggest risk. Don't learn this lesson the expensive way.

Succession planning. What happens if you get hit by a bus tomorrow? Who takes over? Where are the passwords? What are your wishes? Document everything in a family office playbook. If you have kids, gradually involve them appropriately. Make sure at least one other person understands how everything works.

Investment governance. Create an Investment Policy Statement outlining target asset allocation, liquidity needs, risk tolerance, performance benchmarks, and decision-making process. For tech founders, this often means balancing the desire to invest in startups with the need to diversify and preserve capital. Write your strategy when calm, follow it when panicked.

Tax efficiency. Get this right and it's the highest-return activity in your family office. Structure entities and assets to minimise tax drag. A good tax attorney and structuring advisor pays for themselves many times over. This isn't where you cut costs.

Digital transformation. Use technology to operate at a fraction of traditional costs. Portfolio aggregation tools, secure collaboration platforms, automated accounting, digital document management, AI-powered analytics. Your family office should feel like a lean startup, not a 1950s bank.

Your Family Office Tech Stack: Tools That Actually Matter

Here's the practical toolkit organized by priority:

Tier 1: Critical Infrastructure (Must-Haves)

Tier 2: Operations & Efficiency (High-Value Add)

Tier 3: Specialized Services (As Needed)

Tier 4: Professional Advisory (Critical Relationships)

Don't try to implement everything at once. Build iteratively.

Best practices

Start with a clear mission. What does your family office exist to achieve? Wealth preservation? Legacy building? Impact investing? This guides all decisions.

Keep your core team minimal but maintain relationships with specialists you can call when needed. Hub and spoke model—one great person coordinating five specialists beats five mediocre full-time employees.

Implement governance from day one. Clear procedures, documented decisions, defined roles. This prevents costly mistakes and makes onboarding new people easy.

Go digital-first. Paperless, cloud-based, automated where possible. You should access anything, from anywhere, securely.

Create transparency within the family. Simple dashboards so family members (eventually including kids) can stay informed. If a smart 15-year-old can't understand your dashboard, it's too complex.

Design for adaptability. Structure your family office to scale up or down as needs change. Avoid rigid long-term arrangements.

Join peer networks. Connect with other family offices to share practices and access co-investment opportunities. Groups like TIGER 21 provide learning and deal flow. Wealth can be isolating—peer groups counter that.

Conduct strategic reviews every 2-3 years. Is your model still optimal? Are providers delivering value? Has your wealth level changed significantly? What about your goals? Too many people set up a family office and run it on autopilot for decades.

Final thoughts

A family office is infrastructure, not an end goal. It serves your objectives and values.

For tech entrepreneurs, that often means maintaining allocation for angel investments or venture funds, implementing digital-first operations, building flexibility for global mobility, and balancing preservation with continued participation in building things.

Historically, old money and traditional approaches dominated this space. As a tech founder, you can reinvent the model. Make it more efficient, transparent, and aligned with how wealth is actually created today.

Start lean. Focus on fundamentals. Use technology as a force multiplier. Add complexity only when it creates clear value.

Single-Family Office, Multi-Family Office, Virtual Family Office, or hybrid—the goal is the same. Design a system providing necessary control and sophistication without consuming the wealth you worked so hard to build.

You survived building a company. Now manage what came from it effectively.