Family Office "Expert Generalist" In Focus, Industry Mulls Long-Term Incentive Trends

Editorial Staff

25 June 2025

The role of an “expert generalist” at family offices was highlighted at a recent panel delving into how these organizations are built, and how they keep and retain staff.

Linda Mack, founder and president of Mack International, and one of the panelists, said an expert generalist is the leader who knows about the full spectrum of wealth management disciplines and grasps the interrelationships between all of them, regardless of whether the service is delivered in-house or via an outsourced provider. Mack spoke at a panel held at the New York City offices of Katten, the law firm.

"Since no decisions are made in isolation, it's important that the leader has the peripheral vision to see across the entire spectrum and deep down into each vertical to ensure everything is in sync and coordinated to meet family objectives,” she said.

The panel considered a 2024 survey carried out by Botoff Consulting. Other panelists at the event were Mitchel Pahl, partner, Katten and Saul Rudo, partner and co-chair for family offices, Katten; Trish Botoff, of Botoff Consulting; and Brian Adams, partner, at Mack International.

The number of long-term incentive plans in family offices for attracting and keeping staff has risen to 54 per cent over the past 10 years, with offices holding $2.5 billion or more standing at 72 per cent, the Botoff Consulting study showed.

Family investment firms' use of LTIs, meanwhile, has risen to 86 per cent from 62 per cent with those holding AuM of more than $2.5 billion. Deferred incentive compensation, co-investment, and carried interest were the top three LTIs used in the market.

Trish Botoff said that for the first time since they began collecting data on the use of LTI plans in 2015, co-investment opportunity surpassed deferred incentive compensation as the most prevalent LTI plan type, according to a statement issued this week about the discussion, held in early May.

Boomer "transitions" are fueling heightened demand for succession strategies throughout the family office, Linda Mack, said.

Market dynamics that have been anticipated for years are on the rise as Baby Boomers start to hand on leadership to the next generation, the panel heard.

Adams said he thinks the situation is "acute."

"There has been real role and responsibility `creep’. The leader who performed several key roles has left a gap. There is frequently a need to backfill one person with two or three people. The scope and expectations of the executive have increased dramatically, and the family office must consider whether to insource or outsource various services,” Adams said.

"Boomer "transitions" drive more demand for succession and leadership strategies in the C-Suite and throughout the family office. The challenge is finding the individual who not only has the requisite skills for the position but is also the right culture fit, Mack said.

“Family offices are typically seeking a 10 to 15-year tenure, and the relationship with the family is a very personal one. Aligning with the culture is paramount for success," she said.

Building a family office
Adams said about a quarter of Mack International's searches are for principals/families establishing a family office for the first time. Typically, the first hire is an expert generalist – the classic leader of a family office.

Panelists were asked about the phenomenon of virtual family offices.

"There is a lot of interest and curiosity about family offices with first generation entrepreneurs, particularly the idea of a `virtual’ family office. There is a notion that virtual platforms can provide the same scope of services of the more traditional family office. However, this means that the expert generalist must bring a much higher level of expertise to manage and run processes and be totally accountable. That candidate is difficult to find,” Adams said.