Global Family Offices Market Report and Forecast 2024-2032

Global Family Offices Market Outlook

The global family offices market size was approximately USD 93.72 billion in 2023. The market is estimated to grow at a CAGR of 7.4% during the forecast period of 2024-2032 to reach a value of USD 178.42 billion by 2032.

Key Takeaways

• Reportedly, North American family offices have about 20% of their wealth in real estate.

• The presence of a large number of wealthy families and high-net-worth individuals that turn to family offices to manage their wealth and other financial needs is aiding the market growth.

• A growing number of family offices in the North American, Asia Pacific, and European region are increasing their investments in eco-conscious businesses that are working towards reducing social and environmental issues, especially climate change.

Reportedly, there are about 10,500 family offices on a global scale. Geographical dispersal, including global investments and family members settling away from their family’s home base for work or education, is creating a need for well-established and fabricated wealth management services. The family office, thus, deals with the administration and effective day-to-day management of a family’s cross-border wealth.

The complexity of tax legislation owing to the geographical dispersal of wealth is another factor that is leading to a growing demand for family offices.

In 2022, family offices contributed to around one-third of the total capital invested in startups.

Figure: Investments In Family Office Startups (2018-2021)

Key Trends and Developments

Increasing wealth of private entities; growing inclination towards connected environments; rising number of ultra-HNWIs; and rising adoption of artificial intelligence are the major factors impacting the family offices market growth

Mar 1, 2023

Stonehage Fleming announced the acquisition of South Africa-based investment firm Rootstock Investment Management. The latter is rebranded as Stonehage Fleming SCI Worldwide Flexible Fund, with effect from 1 March 2023.

Feb 3, 2022

Stonehage Fleming announced the completion of its acquisition of Maitland’s Private Client Services business. Maitland is a global advisory, administration, and family office firm. The transaction added around GBP 1 billion of AUM and GBP 15 billion of AUA, taking Stonehage Fleming’s total AUM to over GBP 16 billion and AUA to over GBP 60 billion.

Jan 17, 2023

MSD Partners, L.P.  entered into a definitive business combination agreement with BDT & Company Holdings, L.P., a merchant bank, to create a differentiated advisory and investment firm aimed at serving the varied needs of family- and founder-led business owners and long-term investors.

Rising private wealth

There is an increase in private wealth driven largely by the riches made in the growing tech market. Modern entrepreneurs are turning towards multi-family offices to manage their complex investments spread globally owing to their innovative and global mindset.

Players working towards developing a connected investment environment

Companies are inclined towards developing a connected investment market by supporting, growing, and aligning their network of clients and contributors. They are focusing on their strengths, utilising technology to position themselves as market differentiators, reducing operational complexities, and enhancing their efficiencies so that clients are comfortable, further mobilising employees to increase their efficiency.

Growing ultra-HNWIs

The rising number of ultra-high-net-worth individuals is driving the popularity of family offices for wealth management over traditional wealth management firms.

Adoption of artificial intelligence

AI can help family offices forecast events by recognising patterns quickly. Additionally, AI, robo-advisers, and digital reporting systems are anticipated to enable them to help their clients manage their wealth more closely, leading to the family offices market development.

Family Offices Market Trends

Virtual family offices (VFO) are adopted by families spread across geographies and require fewer complex services. The advanced technologies being adopted by companies in the family offices market are leading to more secure processes, with VFOs representing a cost-effective method to receive remote on-demand services.

Multi-family offices globally are investing in mergers and acquisitions, focused on inorganic and disruptive growth. Such strategies are expected to help them increase their scalability within a short period while ensuring maximum productivity.

Family offices in Europe, North America, and the Asia Pacific, are potentially increasing their investments in cryptocurrency and businesses that target sustainability. A significant number of family offices in Europe have a toehold in cryptocurrency as they expect it to become a mainstream asset class and see it as a promising investment. The trend of investing in sustainability is boosted by the need to protect the environment and support the development of eco-conscious businesses. Family offices are targeting their investments at businesses working towards reducing climate change.

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Market Segmentation

“Global Family Offices Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Single Family Office

• Multi-Family Office

• Virtual Family Office

Market Breakup by Asset Class

• Alternative Investments

• Equities

• Bonds

• Cash or Cash Equivalents

• Commodities

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Based on asset class, alternative investments dominate the global family offices market share

Family offices and ultra-rich families have been seeking investments in various assets, including blockchain, structured credit, and forestry, among others, aligning their investment processes with a new generation of wealth.

The influx of value-driven and young wealth holders and evolving sources of wealth are likely to boost the focus on new asset classes and impact-focused investment.

Based on type, single family office accounts for a significant share of the family offices market

For ultra-affluent families, single-family offices (SFO) have gained popularity owing to the control, autonomy, and personalised attention it offers to these families.

Meanwhile, multi-family offices (MFO) are favoured by modern wealth owners owing to the increased level of specialisation offered by them. MFOs provide their clients with customised services and knowledge and have distinguished themselves as trusted advisors for wealthy investors.

With a growing number of families interested in outsourcing only the investment oversight of its capital, the adoption of virtual family offices (VFO) is anticipated to increase, where advisors can be accessed online as and when needed. The benefits of adopting VFOs, such as affordability and flexibility and the availability of several professional advisors that work together to manage the family's financial matters, are enhancing their popularity.

Competitive Landscape

With the growing need for transparency and the demand for real time data to enhance decision making, family offices are embracing technology to facilitate more proactive management.

Cascade Investment Group, Inc.

Headquartered in the US, Cascade Investment Group is a registered investment adviser company focused on offering services free from conflicts of interest brought about by large corporate ownership.

MSD Partners, L.P.

Founded in 2009, MSD Partners, L.P. is a leading investment firm focused on maximising long-term capital appreciation across its core areas of investing expertise which include credit, growth, private capital, and real estate.

Stonehage Fleming Family and Partners Limited

With headquarters in the UK, the company offers services including long-term planning to routine transactions and administration.

The Glenmede Trust Company, N.A.

Glenmede, headquartered in the United States, offers its services to clients globally including institutions, consultants, and advisors with a contemporary approach to institutional investing that provides long-term value for clients.

Bessemer Group, Incorporated

Bessemer, headquartered in the United States, is a privately owned company engaged in providing investment management, wealth planning, and family office services.

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Family Offices Market Analysis by Region

With the growing wealth in the Asia Pacific and rising numbers of billionaires, especially in China, families have started to focus on institutionalising family wealth management and in-sourcing fund management operations through family office solutions.

Family offices are becoming popular in Europe, particularly in wealthy areas such as Monaco, Switzerland, and London. As more wealthy families and ultra-high-net-worth individuals resort to the family office solution, the market is expected to further grow in the region.

Meanwhile, with an increase in wealth generation in North America, family offices have been diversifying their investments in various areas like healthcare tech, metaverse, NFTs, and Web 3.0, among others.

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Family Offices Market Report Snapshots

Family Offices Market Size

Family Offices Market Analysis

Family Offices Market Trends

Family Offices Companies