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Family Office Market Segmentation By Type (Single Family and Multi-Family Office); By Office Type (Founders’ Office, Multi-Generational Office, Investment Office, Trustee Office, Compliance Office, Philanthropy Office, Shareholder’s Office and Others) and By Managed Net Worth (Less than 50 Million, 50 Million to 100 Million and More than 100 Million) - Global Industry Demand Analysis and Opportunity Assessment 2019-2028

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Extensive insights into the Growth of Family Office, Family Office Market Share Market amidst COVID-19

Before we witness the stabilization of economic growth in Europe and North America, Asia Pacific is estimated to bounce back progressively with countries such as China, India, South Korea and Japan witnessing more opportunities to recover from the losses sustained during COVID-19.

Being the biggest market in Eastern Europe, Russia is estimated to take the lowest hit, offering a sigh of relief to the businesses operating in the country. Whereas, GCC is estimated to observe low investments due to the sliding prices of crude oil.

We evaluate the strategies and commitment of the Giant Players in the market towards creating products and services that customers value and rely on.

In an attempt to control and eliminate the surge of coronavirus cases and meet the demand for required medical devices along with providing efficient medical services, there is a drastic shift of investments from authoritative bodies towards the healthcare sector. Where the aftermath of this pandemic may take years to be measured, Research Nester estimates notable expansion of e-health, gaming, and media and entertainment industries till the whole situation is contained and the plan of action for the recovery process is determined. There is an estimated probability of the growth in businesses going back a year if the condition is controlled in the next 2-3 months.                                                         Request Insights

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IN THE NEWS

  • In July 2020, BNY Mellon and Deutche Bank collaborated to develop a new API-enabled foreign exchange solution to improve confirmation times for restricted emerging-market currency trades.

  • In June 2019, UBS AG and Sumitomo Mitsui Trust Holdings, Inc. announced that they have partnered together to launch a strategic wealth management venture in Japan.

Market Overview

The global family office market is thriving on the back of the rising need amongst families or individuals to outsource their entire financial management. Family offices are a means of investment management for affluent families. Family offices provide their clients with a wide range of services including tax planning, budgeting, insurance, among others besides investment. The most important aspect of every family office is the handling of private wealth along with privacy and the highest possible level of confidentiality. The family office often is and should be, the only entity that keeps all the information for all family members, covering the entire portfolio of assets and general personal information.

The global family office market registered a value of USD 17.70 billion in the year 2019 and is further anticipated to reach a value of USD 26.57 billion by the end of 2028 by growing at a CAGR of 4.62% during the forecast period, i.e. 2020-2028.

Growth Highlights Based on Region During 2019-2028

The global family office market is segmented by regions into North America, Latin America, Europe, Asia Pacific, Middle East and Africa. Among these regions, the market in North America registered the largest share of 44.63% along with a value of USD 7.90 billion in the year 2019 and is further expected to reach a value of USD 11.99 billion by the end of 2028 by growing at a CAGR of 4.74% during the forecast period. Presence of numerous ultra-high-net-worth individuals who are increasingly establishing family offices in order to have greater control over their investments, along with the fact that the financial services for HNIs are not fulfilled by wealth management firms and private banks, are some of the factors raising the demand for establishing family offices in the region, which in turn is anticipated to drive the market growth in North America.CLICK TO DOWNLOAD SAMPLE REPORT 

Family Office Market Graph

The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).

Market Segmentation Synopsis

By Type

The global family office market has been segmented on the basis of type into single family office and multi-family office. The single family office registered the largest market share along with a value of USD 13.39 billion in the year 2019 and is projected to reach a value of USD 19.90 billion by the end of 2028 by growing at a CAGR of 4.50% during the forecast period. The segment is further sub-divided into independent from family business and embedded within family business, out of which, the embedded within family business segment registered the largest market share and further gained a value of USD 8.09 billion in the year 2019. The increasing need for wealth management, backed by the growing number of billionaires is significantly driving the single-family office segment. With several new organizations and companies being launched every day, there is a significant rise in the growth of the single-family offices, which in turn is driving the growth of the segment. Single-family offices either have occasionally adjusted term sheets or standard protection requirements while making investments. The majority of single-family offices provide family services such as accounting, and tax management followed by succession planning.

Market Drivers and Challenges

Growth Indicators

Increasing Wealth of High-Net-Worth Individuals (HNWI)

Growing investment in fashion, technology, real estate and financing has drastically increased the wealth of high-net worth individuals across the world during the past three decades. During the era of Dot Com Boom, many giant organizations grew their assets multiple fold, therefore creating opportunities for other companies across the world. Additionally, the significant growth of billionaires was led by the high returns gained across almost all major asset classes, despite a loss of momentum in the global economy and turbulent geopolitical environment. Moreover, despite the trade wars, slowing global growth and the volatile stock market, the total number of millionaires in the world increased significantly.

Numerous Benefits Associated With Family Office

The family office plays an important role in asset management of HNWI. It further helps the HNWI with succession planning within the business to expand in different regions worldwide. Wealthy families are setting up family offices with a growing interest in sustainability and impact investing. Most family offices are established as a result of the management of succession and transfer of wealth from one generation to another. Moreover, family offices also provide greater confidentiality & privacy and higher returns, and further ensures that there is good governance and better alignment of interest. It further addresses a wide range of complexity of the financial services demanded by the HNWIs. Such factors are anticipated to drive the growth of the global family office market.

Restraints

High Cost of Operation

One of the major challenges faced by family offices is to control the cost of operations, which includes staffing costs, operational cost of running IT systems and the overhead administrative costs. The challenges observed in structuring the family office to maximize cost-effectiveness and expense deductibility is causing great concerns amongst the family office members, which is anticipated to restrain the market growth during the forecast period.

Competitive Landscape

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.

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