Liquidity events are major transitions in the level or type of financial wealth for an asset-owning entity, ranging from trusts or investor partnerships to an individual, family branch, or family enterprise. They may result from the sale of a business venture or asset holding, whereby illiquid ownership shares with a paper valuation are turned into liquid investable capital. They may also be a transformation of the asset, as when a privately held family business goes public and gets a large infusion of capital in addition to or replacing ownership shares. Other events may include buyouts, mergers, acquisitions, direct listings, secondary market transactions, and structured liquidity programs.

Liquidity events often have major consequences for the owner(s) of the asset. They may catapult the owner into a wholly different level of wealth, significantly increasing the size and complexity of their wealth with a corresponding need for increased services across multiple domains.  They also often cause transitions in identity, social standing, community relations, internal family dynamics, needs for financial knowledge and skills, and opportunities for philanthropy and social impact. Liquidity events are frequently the catalyst for individuals or families to seek or change their advisors or to consider creating a formal family office structure.