Family Offices Global Market Report 2024

“Family Offices Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on family offices market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for family offices? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The family offices market global report ” from The Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

Scope

Markets Covered:

• 1) By Type: Single Family Office; Multi-Family Office; Virtual Family Office
• 2) By Asset Class: Bonds; Equities; Alternative Investments; Commodities; Cash Or Cash Equivalents
• 3) By Office: Founders' Office; Multi-Generational Office; Investment Office; Trustee Office; Compliance Office; Philanthropy Office; Shareholder's Office; Other Offices
• 4) By Net-Worth Managed: Less Than 50 Million; 50 Million To 100 Million; More Than 100 Million
• Companies Mentioned: Cascade Investment Group Inc.; MSD Partners LP; Stonehage Fleming Group; Glenmede Trust Co; The Bessemer Group Incorporated.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.

Executive Summary

A family office is an organization dedicated to private wealth management, addressing the financial and investment requirements of high-net-worth individuals or families. It provides a secure and easily accessible centralized location for families to manage all their confidential information.

Family offices come in three main types, single family office, multi-family office, and virtual family office. A single-family office (SFO) is a private wealth management entity specifically designed to meet the needs of a single affluent family. Asset classes managed by family offices include bonds, equities, alternative investments, commodities, and cash or cash equivalents. These offices can take various forms, such as founders' offices, multi-generational offices, investment offices, trustee offices, compliance offices, philanthropy offices, shareholder offices, and others. Family offices cater to varying levels of net worth, with classifications including less than 50 million, 50 million to 100 million, and more than 100 million.

The family offices market research report is one of a series of new reports from The Business Research Company that provides family offices market statistics, including family offices industry global market size, regional shares, competitors with a family offices market share, detailed family offices market segments, market trends and opportunities, and any further data you may need to thrive in the family offices industry. This family offices market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The family offices market size has grown strongly in recent years. It will grow from $18.33 billion in 2023 to $19.4 billion in 2024 at a compound annual growth rate (CAGR) of 5.8%. The expansion observed in the historical period can be ascribed to trends in wealth accumulation, the demand for asset diversification, requirements for succession planning, the global spread of wealth, and the implementation of tax optimization strategies.

The family offices market size is expected to see strong growth in the next few years. It will grow to $23.82 billion in 2028 at a compound annual growth rate (CAGR) of 5.3%. The anticipated expansion in the forecast period can be credited to the increasing number of ultra-high net worth individuals (UHNWI), prevailing trends in impact investing, the digital transformation within the finance sector, and shifts in wealth management due to changing generations. Notable trends expected in the forecast period encompass the emergence of co-investment opportunities, the consolidation of family offices, an emphasis on family governance, the adoption of philanthropic strategies, and heightened attention to regulatory compliance.

The anticipated growth in the family offices market is expected to be driven by the increasing demand for wealth management services. Wealth management involves professional services and strategies aimed at assisting individuals or families in preserving, growing, and effectively managing their wealth. Family offices are expanding their services by offering a comprehensive range of sophisticated financial solutions to address the intricate needs of high-net-worth individuals and families. The key advantage of family offices in wealth management lies in providing highly personalized and comprehensive financial services tailored to meet the specific needs and objectives of affluent families. This facilitates the preservation, growth, and efficient management of their wealth across generations. As an example, the Global Family Office Report 2022 by UBS Group AG revealed that over 80% of family offices invested in private equity, with a growing number engaging in direct investments annually. The average allocations to private equity total wealth have steadily increased from 10% in 2020 to 13% in 2021, indicating a growing reliance on family offices for sophisticated wealth management services. Therefore, the increasing demand for wealth management services is expected to drive the growth of the family offices market.

The expected surge in disposable income is poised to propel the growth of the family offices market. Disposable income represents the total amount of money available for spending and saving by an individual or household after deducting taxes and other mandatory contributions. With an increase in financial resources, individuals and families seek professional wealth management services to navigate the complexities of diversified investments, estate planning, tax optimization, and lifestyle management. Family offices play a pivotal role in delivering personalized services, guiding the next generation, and supporting various aspects of comprehensive wealth management as financial complexities intensify with growing affluence. For instance, in 2021, the World Bank reported that the per capita net disposal income of lower middle-income countries ranged between $1,036 and $4,045, while upper middle-income countries recorded a per capita net disposal income between $4,046 and $12,535. Additionally, the Office for National Statistics noted a 3.6% growth in the gross disposable household income (GDHI) in the United Kingdom in 2021 compared to the figures recorded in 2020. Hence, the increase in disposable income serves as a driving force for the growth of the family offices market.

A prominent trend gaining traction in the family offices market is the adoption of disruptive technologies such as AI and blockchain. Leading companies in the family offices market regularly prioritize disruptive technologies to enhance competitiveness through increased adoption. For example, in October 2022, Raffles Family Office, a China-based multi-family office offering investment management services, introduced the Revo Digital Family Office. This next-generation platform enables ultra-high-net-worth families to access and invest in digital assets, incorporating blockchain technology to overhaul legacy systems and processes in wealth management, providing enhanced security and efficiency.

Major companies in the family offices market are also innovating their services, introducing offerings such as syndicate funds for family offices to maintain a competitive edge. A syndicate fund is a pooled investment vehicle where multiple investors, often sharing similar investment goals or interests, contribute capital to collectively invest in diverse assets or opportunities. For instance, in September 2023, Artha Group, an India-based property developer, launched the Artha Continuum Fund (ACF), an exclusive syndicate fund tailored for family offices and ultra-high-net-worth individuals (UHNIs). This fund offers elite investors direct access to bridge rounds of emerging growth-stage ventures, allowing them to invest a minimum of ₹10 crores ($1,209,510) per deal. ACF strategically co-invests alongside leading VC funds, providing investors with a unique entry into the growth stage VC ecosystem. By addressing due diligence depth and negotiation power, ACF offers investors a platform for elevated returns from private investments while mitigating risks associated with early-stage startups.

In October 2022, Endowus, a Singapore-based digital wealth advisory platform, completed the acquisition of Carret Private Investments for an undisclosed amount. This acquisition enables the Endowus group of firms to vertically integrate, better meeting the demands of various customer groups, and delivering superior investment and advisory solutions. Carret Private Investments, a China-based multi-family office specializing in wealth management, private investments, and wealth planning, aligns with Endowus' strategic objectives.

Major companies operating in the family offices market report are Cascade Investment Group Inc., MSD Partners LP, Stonehage Fleming Group, Glenmede Trust Co, The Bessemer Group Incorporated., The Bank of New York Mellon Corporation, UBS Group AG, BMO Financial Group, Cambridge Associates Ltd., Citigroup Inc., Wells Fargo & Company, Northern Trust Corporation, Silvercrest Asset Management Group LLC, The Pictet Group, Emerson Collective LLC, Bezos Expeditions LLC, Fedesa Europe S.A., The Woodbridge Company Ltd., Hillhouse Capital Management Limited, Premji Invest, ICONIQ Capital LLC, Bregal Investments LLP, Gart Capital Partners, Rockefeller Capital Management L.P., Soros Fund Management LLC, The Blackstone Group Inc., The Carlyle Group Inc., The Chernin Group Inc., The Pritzker Organization LLC, The Raine Group LLC, The Yucaipa Companies LLC, Tiger Global Management LLC

North America was the largest region in the global family offices market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the family offices market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the family offices market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The family offices market includes revenues earned by entities by succession planning, inheritance tax planning, dilution of non-core family assets, and family settlements. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.