Short answer: A family office works exclusively for one family (or a few), coordinating investments, tax, estate, and lifestyle with no product-sales agenda. A wealth manager or private bank serves many clients and typically earns fees or commissions on the products and services it sells, which can create conflicts of interest.
Family office vs wealth manager vs private bank
| Family Office | Wealth Manager | Private Bank | |
|---|---|---|---|
| Whom it serves | One family (or a few) | Many clients | Many clients |
| Independence | Fully independent | Varies; may sell products | Sells the bank’s products |
| Scope | Investments, tax, estate, governance, lifestyle | Mainly investments | Banking + investments |
| Alignment | Works only for the family | Fee- and/or commission-based | Fee- and/or commission-based |
| Cost model | Family bears fixed cost | % of assets and/or commissions | Spreads, fees, and commissions |
Which is right?
A family office suits families whose wealth and complexity justify a dedicated, conflict-free team. A wealth manager or private bank can be efficient for families who want professional management without building an office, provided they understand how the provider is compensated. Many families use a family office to coordinate the banks and managers they work with.
See TFOA’s research on what a single family office is, the multi-family office model, and our family office glossary. To connect with peers, see membership.
