Family Office Market Analysis

Type Segment Analysis

In the type segment, single-family offices will lead, capturing the largest revenue stake of 71.6% in the family office market over the discussed timeframe. The segment’s prominence in this field is attributable to the deep demand for highly bespoke, confidential wealth management, governance, and legacy planning services for ultra-wealthy families. This is, in turn, fueled by the continued rise in global UHNW populations and the increasing complexity of intergenerational wealth transfer procedures. According to the report published by IBEF in September 2024, Family offices in India have expanded at a rapid pace, reaching around 300 in 2024, and now collectively manage approximately USD30 billion in assets. Besides, this is influenced by rising ultra-high-net-worth wealth, greater professionalization of investment management, and an increased focus on succession planning and philanthropy, hence denoting a wider segment scope.

Asset Class Segment Analysis

By the end of the forecast duration, alternative assets will grow at a considerable rate in the family office market. The growth of the segment is highly subject to the pursuit of higher risk-adjusted returns and long-term capital preservation. Besides, the family offices are allocating capital to private equity, venture capital, hedge funds, real assets, and private credit to reduce dependence on public markets and enhance portfolio resilience. This growth is also supported by greater access to direct investments, co-investment opportunities, and fund structures that are suitable for ultra-high-net-worth investors. In addition, the rising family office market volatility, geopolitical uncertainty, and inflationary pressures are encouraging diversification into alternatives with lower correlation to traditional asset classes. Furthermore, the aspect of enhanced internal investment capabilities enables family offices to manage the complexity and longer investment horizons associated with alternative assets.

Service Segment Analysis

In the family office market, the investment management services segment is expected to capture a lucrative revenue share by the end of 2035. The family offices increasingly focus on portfolio diversification, alternative investments risk management strategies to preserve and grow wealth across generations, which is prompting a profitable business environment for the service segment. In November 2024, Goldman Sachs announced the launch of an enhanced family office platform integrating its Ayco and private wealth management offerings to provide ultra-high-net-worth clients with both holistic advisor-led solutions and customizable à la carte services. The firm also stated that this platform combines investment management, alternative asset administration, cybersecurity, and consolidated reporting, thereby enabling families to manage very complex finances without any operational burden of running a full family office, hence denoting a positive family office market outlook.

Our in-depth analysis of the family office market includes the following segments: