The number of family offices grew significantly in recent years in lieu of an increase in wealth accumulation by high net worth individuals across the globe coupled with aggressive monetary easing by global central banks. Average Assets under Management by a family office stands at 917 Million USD in 2019 whereas the average net worth of such families stands at 1.2 billion USD.
Coming to the most significant trends in the industry, China, India, and Other Asia-Pacific countries are increasingly becoming popular for family wealth managers. Education is the top cause families give to globally, constituting 29% of the average philanthropic portfolio, followed by health (14%), and the arts, culture, and sports (10%).
European families are more interested to fund or donate such philanthropic causes outside their region compared to North American And Asia-Pacific HNWIs.
Key Market Trends
Family Offices Invest Majority Of Their Assets Into Alternatives
Family Offices are prominent investors in alternative assets. The majority of investors target private equity and real estate reflecting wider industry trends across the private capital. Looking ahead to the next 12 months, family offices active in real estate are primarily targeting investment in high-risk/high-return opportunistic and value-added strategies. Family Offices' interest in alternative assets is growing and the proportion of investors investing in real estate has increased 8 percentage points from 2016 to 2019.
Family offices have fewer restrictions and more flexibility than other investor types and therefore have the capacity to 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.
Number of Family Offices Are on a Rise Across The Globe
By the end of Q2 2019, there are 7,300 offices worldwide, an increase of 38 percent in the last two years. North America had the largest share of family offices, with 3,100 or 42 percent of the total, while Asia-Pacific had 1,300 offices, and Europe had 2,300. Emerging markets, consisting of South America, Africa, and the Middle East, were home to 600 family offices. During the last two years, the number of Asia-Pacific family offices rose 44 percent, while in North America they grew 41 percent and, in Europe, 28 percent. The proportion of family offices by AuM are shown below.
Competitive Landscape
The report includes an overview of the largest family offices 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 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.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
Methodology
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