Family Offices Industry Market Size
|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
|CAGR:||> 5 %|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and it's growth?
Family Offices Industry Market Analysis
The Family offices market is valued at USD 87.18 billion currently and is expected to reach USD 133.60 billion over the forecast period, registering a CAGR of 7.5% over the forecast period.
Shifting economic and market forces and the continuous globalization of society, commerce, and regulation are driving the emergence of family offices. Family offices are private wealth management advisory firms established to manage families’ private wealth. They provide financial advice only to family members, are wholly owned and controlled by family members, and do not present themselves as public investment advisors. The establishment of family offices to manage the affairs of wealthy families surged in recent years. The emergence of family offices can be attributed to the rise in worldwide wealth over the years.
Asia-Pacific is becoming increasingly attractive for investments among family offices already in the region and around the globe, favoring high-yield equities. Asia-Pacific family offices made the sophistication of their vehicles much of a priority for developing a post-pandemic growth strategy, sustainable investing, and succession planning. The region's families were well behind their North American and European counterparts in investing in cryptocurrency. European families are more interested in funding or donating to such philanthropic causes outside their region than North American And Asia-Pacific HNWIs.
As a worldwide pandemic, COVID-19 affected people's health and society's well-being and directly impacted global markets and businesses. With increased uncertainties over COVID-19 recovery and challenges in the global geopolitical environment, family offices remain cautious about future investment prospects. The pandemic severely impacted the global economy, but government actions in the form of stimulus mitigated the impact by the end of 2020. In some developed markets, interest rates were close to zero or even negative, and returns on income remained low. Thus, family offices gradually change their asset allocations.
Family offices were increasingly seen as a boon for international finance centers. Gradually, establishing a family office in a single location was no longer sufficient, and families began to explore offshore financial markets. The UK, Switzerland, Luxembourg, and popular and well-established offshore centers, such as Hong Kong, Monaco, and the Channel Islands, continue to host offices of wealthy foreign families. Certain jurisdictions offer specialties such as options for hedge funds in the Cayman Islands or better risk management options in Bermuda for attracting family offices.
Family Offices Industry Industry Segmentation
A family office is a private wealth management advisory firm that serves ultra-high network-worth individuals. The report covers a complete background analysis Market. It includes an assessment of the economy and the contribution of sectors in the economy, a market overview, market size estimation for critical segments, emerging trends in the market segments, and market dynamics. The Global Family Offices Industry is segmented by product (single family office, multi-family office, and virtual family office), asset class the investment (bonds, equity, alternative investments, commodities, and cash or cash equivalents), and geography (North America, Europe, Asia-Pacific, Latin America and Middle East and Africa). The report offers market size and forecasts for Global Family Offices Industry Market in value (USD million) for all the above segments.
|Single Family Office|
|Multi Family Office|
|Virtual Family Office|
|By Asset Class Of Investment|
|Cash Or Cash Equivalents|
|Middle East ad Africa|
Family Offices Industry Market Trends
Family Offices Invest Majority Of Their Assets Into Alternatives
Family Offices are prominent investors in alternative assets. Environmental and social issues became the top themes of the global post-pandemic economy. Family offices also increased investments in equity and related areas. Of the total family offices, 86% are interested in healthcare technology, and more than 70% are also looking at digital and green technologies for investments over the next three years. 52% of the family offices prefer private equity as an investment opportunity. The reasons for such preferences are 75% state that private equity comprises the potential to deliver higher returns than public equity, while 44% use it as an asset diversification strategy.
Family offices include fewer restrictions and more flexibility than other investor types and, therefore, can deploy larger proportions of their total assets to asset classes higher up the risk/return spectrum. Family Offices' median asset allocations are highest in private equity and hedge funds.
To understand key trends, Download Sample Report
Number of Family Offices are on a Rise across the Globe
Family Offices are becoming increasingly popular and prominent in investment circles. Their rise is due to changing economic conditions and the increased flexibility and control families wish to exert with their capital. There were more than 8000 single-family offices worldwide. North America dominates the family office market with more than 92,000 wealthy individuals. The US alone contributes to half the global UHNWIs, with more than 89,000 individuals. North America holds nearly two-thirds of family offices globally, where investments are made through SFOs and MFOs. North America had the largest share of family offices, with more than 4000. As HNWI is increasing globally, family offices are also increasing parallelly.
To understand geography trends, Download Sample Report
Global Family Offices Industry Industry Overview
The report includes an overview of the largest and a few mid-sized family offices with increasing participation in VC funding operating in the market studied. Each Profiling of the organization concentrates on the nature of family offices, how they finance their operations, services offered, families served, major funding activities and philanthropic donations are done, risk profiling, and recent developments in the firm. Currently, some of the major players dominating the market studied, in terms of market share, are listed.
Global Family Offices Industry Market Leaders
Walton Enterprises LLC
*Disclaimer: Major Players sorted in no particular order
Global Family Offices Industry Market News
- March 2023: Cascade Partners acquired Grand Rapids, MI-based BlueWater Partners, LLC. It is an investment banking and restructuring/performance improvement firm with over a 22-year history of success in West Michigan.
- October 2022: BDT & Company Holdings, LLC (BDT) and MSD Partners, L.P. (MSD) entered into a definitive business combination agreement under which they will create an advisory and investment firm. It will serve the distinct needs of family and founder-led business owners and strategic, long-term investors.
Family Offices Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the market
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.1.1 Factors Involved in the Formation of Family Offices
4.1.2 Structure of Family Offices - Human Capital And Other Costs Involved
4.1.3 Average Family Net Worth and Family Office Average AuM Across the Globe
4.1.4 Proportion of Family Offices Formed Over the Years
4.1.5 Operating Business Of Families, By Industry
4.2 Trends Influencing Investment Strategies And Performance Of Family Offices
4.2.1 Alternative Investments Attract Higher Asset Share
4.2.2 Insights on Impact Investing Of Family Offices
4.2.3 Startup Funding And VC Deals By Family Offices
4.3 Evolving Regulatory Landscape Of The Industry
4.3.1 Family Offices in Dodd-Frank Regulatory Evironment
4.3.2 Impact of FATCA And CRS on Family Offices
4.3.3 Implications of New Regulations For Family Offices
4.4 Virtual Family Office: Technology Adaption In The New Business Landscape
4.5 Market Drivers
4.5.1 Hedge Fund Conversions to Escape SEC Regulations
4.5.2 Growth In The Number of High Networth Individuals Across Regions
4.6 Market Restraints
4.6.1 Over Reliance on Legacy Systems
4.6.2 High Demand For Transperancy Requires More Technology Investments
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Buyers/Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products
4.7.5 Intensity of Competitive Rivalry
4.8 Impact of COVID -19 on The Industry
5. MARKET SEGMENTATION
5.1 By Product
5.1.1 Single Family Office
5.1.2 Multi Family Office
5.1.3 Virtual Family Office
5.2 By Asset Class Of Investment
5.2.3 Alternative Investments
5.2.5 Cash Or Cash Equivalents
5.3 By Geography
5.3.1 North America
5.3.4 Latin America
5.3.5 Middle East ad Africa
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Organisation Profiles
6.2.1 Cascade Investment LLC
6.2.2 Bezos Expeditions
6.2.3 Bessemer Trust
6.2.4 MSD Capital
6.2.5 Stonehage Fleming
6.2.7 Emerson Collective
6.2.8 Silvercrest Asset Management*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Family Offices Market Research FAQs
What is the study period of this market?
The Family Offices Industry is studied from 2019 - 2028.
What is the growth rate of Family Offices Industry?
The Family Offices Industry is growing at a CAGR of >5% over the next 5 years.
Which region has highest growth rate in Family Offices Industry?
Asia-Pacific is growing at the highest CAGR over 2021 - 2026.
Which region has largest share in Family Offices Industry?
North America holds highest share in 2022.
Who are the key players in Family Offices Industry?
Walton Enterprises LLC, Cascade Investment, Bezos Expeditions, Mousse Partners, Ballmer Group are the major companies operating in Family Offices Industry.
Family Offices Industry Industry Report
Statistics for the 2023 Family Offices Industry market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Family Offices Industry analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.