High costs and family fallouts prompt wealthy to close investment offices

[Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.]

Rising costs and family disagreements are prompting a growing number of wealthy investors to close their family offices, say advisers.

These offices, which serve as private wealth management companies for rich individuals, have grown strongly in number in the US over the past decade as a convenient way of managing family money and as status symbols. In 2024, there were nearly 3,200 single-family offices in the US, managing $1.3tn of assets, according to estimates by consultancy Deloitte. But the rising costs of maintaining a dedicated office have started to outweigh the benefits for some.

“There are increasing numbers closing,” said Doris Meister, chair and chief executive emeritus of Wilmington Trust. “A lot of families form family offices without fully understanding what it is going to take to run it from a cost perspective.” Advisers said closures were most common among offices managing between $250mn and $750mn, where overhead costs become particularly stressful.

High staffing costs, rising salaries, and inflation have all contributed to growing expenses. William Sinclair of JPMorgan Private Bank said the average annual cost of a billion-dollar-plus family office is approximately $6.1mn and continues to rise. Some families are responding by outsourcing investment functions rather than shutting down entirely.

Despite the challenges, Deloitte expects the number of North American family offices to keep growing, reaching 4,200 by 2030 and managing $2.3tn. Advisers said political and economic uncertainty has also caused some families to delay major decisions. “If the market is volatile, people freeze,” Meister said.

For more information see Josh Spero “High costs and family fallouts prompt wealthy to close investment offices,” The Financial Times, January 9, 2026.