Key Takeaways
- • PE fundraising fell 12.1% in the 12 months to June 30, with funds-of-funds capital down 57.2% and secondaries down 20.6%, according to PitchBook data, shrinking the carried-interest pool that drives associate compensation.
- • Over half of family office respondents to Morgan Stanley's 2025 family office survey offer co-investment as a long-term incentive for investment staff, and 38% offer carried interest.
- • Family offices managed about $5.5 trillion of family wealth at year-end 2024, a 67% increase from 2019, and Deloitte projects $9.5 trillion by 2030.
- • Private assets made up an average of 42% of family office portfolios in 2025, per a UBS survey.
- • Recruiters and executive coaches report rising candidate interest in family offices, with better work-life balance cited as a draw for junior professionals.
Summary
Family offices, long considered a dead end for investment professionals under 40, are increasingly attracting private equity's next generation of talent, according to PitchBook. Corinne O'Dell, a vice president at Selby Jennings, one of the industry's main external recruiting firms, said candidates who once had to be persuaded to interview at family offices now approach her with strong interest in the space.
The shift is tied to a weakening PE job market. For decades, a seat as an associate at a top-tier PE firm was the default goal after an MBA or investment banking stint. That path is less certain as the exit drought constrains fundraising. PE fundraising fell 12.1% in the 12 months to June 30, while capital raised for funds-of-funds dropped 57.2% and secondaries 20.6%, PitchBook data show. Because fundraising is a core component of investment professionals' compensation through carried interest, fewer new vehicles mean a smaller pie for those participants.
Family offices are filling that gap by offering co-investment rights and the ability to deploy capital into private market funds, giving candidates an ownership stake earlier in their careers. Morgan Stanley's 2025 family office survey found that over half of respondents offer co-investment as a long-term incentive, and 38% offer carried interest. O'Dell said some family office packages carry lower cash compensation but provide earlier exposure to upside, which she described as evening out over time.
The sector's growth underpins the trend. Deloitte data show family offices oversaw about $5.5 trillion of family wealth at year-end 2024, up 67% from 2019, and the firm projects $9.5 trillion by 2030. A UBS survey showed private assets, including private equity, private debt, real estate, infrastructure, commodities, hedge funds and other real assets, averaged 42% of family office portfolios in 2025.
Lifestyle considerations also play a role. Kate O'Sullivan, an executive coach and co-founder of CoachSelect, which works largely with PE firms, and a former senior manager at Bridgewater Associates, said many family offices are shedding a reputation for being sleepy and offer interesting work. She added that family offices offer better work-life balance, a priority for junior professionals more than it was two decades ago.
The shift is tied to a weakening PE job market. For decades, a seat as an associate at a top-tier PE firm was the default goal after an MBA or investment banking stint. That path is less certain as the exit drought constrains fundraising. PE fundraising fell 12.1% in the 12 months to June 30, while capital raised for funds-of-funds dropped 57.2% and secondaries 20.6%, PitchBook data show. Because fundraising is a core component of investment professionals' compensation through carried interest, fewer new vehicles mean a smaller pie for those participants.
Family offices are filling that gap by offering co-investment rights and the ability to deploy capital into private market funds, giving candidates an ownership stake earlier in their careers. Morgan Stanley's 2025 family office survey found that over half of respondents offer co-investment as a long-term incentive, and 38% offer carried interest. O'Dell said some family office packages carry lower cash compensation but provide earlier exposure to upside, which she described as evening out over time.
The sector's growth underpins the trend. Deloitte data show family offices oversaw about $5.5 trillion of family wealth at year-end 2024, up 67% from 2019, and the firm projects $9.5 trillion by 2030. A UBS survey showed private assets, including private equity, private debt, real estate, infrastructure, commodities, hedge funds and other real assets, averaged 42% of family office portfolios in 2025.
Lifestyle considerations also play a role. Kate O'Sullivan, an executive coach and co-founder of CoachSelect, which works largely with PE firms, and a former senior manager at Bridgewater Associates, said many family offices are shedding a reputation for being sleepy and offer interesting work. She added that family offices offer better work-life balance, a priority for junior professionals more than it was two decades ago.
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