Global Family Office Market Outlook 2028

Global Family Office Market Analysis 2019-2028

A family office is a distinct legal entity established or financed by a High Net Worth Individual (HNWI) or a family to manage their wealth and provide supporting services including financial planning, nonprofit management, governance, and administrative services, legal advisory, tax, and compliance assistance. The global family office market is anticipated to record a CAGR of 4.62% during the forecast period, i.e. 2020-2028. Factors such as the growing need amongst the families or individuals for outsourcing their entire financial management is anticipated to promote the growth of the global family office market. Additionally, factors such as the increasing wealth of high-net-worth individuals (HNWI) and their need to efficiently manage their family wealth and assets is anticipated to drive the growth of the global family office market.

The global family office market consists of various segments that are segmented by office type into founder’s office, multi-generational office, investment office, trustee office, compliance office, philanthropy office, shareholder’s office and others. Out of these, the investment office segment registered the largest market share along with a market value of around USD 4 billion in the year 2019. The investment offices are the companies which generally invest the money received from the investors and every share of the investor shares the profit or the loss which is proportionate to the interest of the investor in the company.

Based on region, the global family office market is segmented into five major regions including North America, Latin America, Europe, Asia Pacific, Middle East and Africa. The market in Europe registered a significant market share along with a value of around USD 5 billion in the year 2019 and is further anticipated to grow with a CAGR of around 5% during the forecast period on account of the fact that the nation has a relatively mature family office environment, with multiple providers available at each point of the value chain. Investment style also contributes to lower costs, as European offices have a higher proportion of conservative mandates, which tend to be cheaper to manage than growth mandates.

Some of the affluent industry leaders in the global family office market are Bessemer Trust, The Bank of New York Mellon Corporation, UBS AG, BMO Financial Group, Pictet Group, Wells Fargo Bank (Abbot Downing), Walton Enterprises, Inc., Bezos Expeditions, Cascade Investment LLC, and MSD Capital L.P.