Definition and Purpose

A Family Office company is a private platform created to manage, centralise and grow the wealth of a family engaged in an economic activity. In essence, it operates as a business entity designed to act as both a management and investment vehicle for family-owned assets.

Traditionally, a Family Office represents a company run by and for a family, generating profits through its own activity while pursuing three main goals:

1. Preservation – protecting existing assets.
2. Expansion – creating sustainable financial growth.
3. Succession – ensuring smooth intergenerational transfer.

To achieve these objectives, families rely on a Family Officer — a professional expert in legal, fiscal and financial planning — who structures the family’s assets and investment strategies in line with long-term goals.

(See also: Who Needs a Family Office?)

What Is a Family Office Investment Fund?

Within the framework of a Family Office, the investment fund represents the growth component of the structure.

Its purpose is capital expansion — ensuring that the family’s wealth is not only preserved but also multiplied through strategic investments.

Depending on the size and maturity of the Family Office, these investments may range from moderate to high-risk, typically across:

• Real estate,
• Private equity and venture capital,
• Financial markets, and
• Sustainable or impact investments.

The key to success lies in risk diversification and maintaining strong financial governance, ensuring that investment activity aligns with the family’s long-term interests and ethical values.

(Reference: CNMV – Family Office and Private Investment Structures in Spain)

What Is Family Office Wealth Management?

Wealth management refers to the comprehensive management of high-net-worth assets.

A Family Office functions as a private advisory firm dedicated exclusively to high-net-worth individuals (HNWI) and ultra-high-net-worth individuals (UHNWI), offering a fully outsourced, integrated solution for financial, legal and strategic management.

Unlike traditional wealth management firms, Family Offices provide a holistic service, typically including:

• Investment strategy and portfolio management,
• Tax and estate planning,
• Philanthropy and charitable giving,
• Budgeting and insurance, and
• Succession and legacy planning.

Some Family Offices focus primarily on finance and investment, while others extend to corporate governance, real estate, or international structuring.

(Reference: European Family Office Report – UBS 202

Why Work with Frau Legal

At Frau Legal, we specialise in the creation, legal structuring and fiscal optimisation of Family Offices for both Spanish and international clients.

Our multidisciplinary approach covers:

• Legal and tax design of the Family Office entity.
• Coordination with financial advisors and investment managers.
• Succession planning and governance frameworks.
• International compliance and wealth protection.

Building a Family Office is not just about managing assets — it’s about designing a legacy that lasts.