Family Office Market Trends

Growth Drivers

• Rising global wealth & UHNWI growth: The most fundamental driver for the family office market is the ongoing increase in global wealth, especially among high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs). This is because more affluent families create greater demand for bespoke wealth management and legacy planning services. According to an Oxfam International report published in June 2025, the world’s richest 1% have added over USD 33.9 trillion in real wealth over the last decade, which highlights the unprecedented concentration of private capital globally. The report also mentioned that over the last two decades, global private wealth grew eight times faster than public wealth, underscoring the expanding financial power of ultra-wealthy individuals and families. Hence, this accelerating accumulation of private wealth reinforces the structural demand for specialized wealth management, governance, and long-term capital preservation frameworks.

Global Distribution of Ultra High Net Worth Individuals (UHNWIs) by Country, as of 2023

Source: Center for Data Innovation

• Intergenerational wealth transfer: Huge amounts of wealth are being passed from one generation to the next, which increases the need for structured governance, succession planning, and long-term preservation strategies, prompting a profitable business environment for the family office market. The Silicon Valley Community Foundation in April 2024 disclosed that a large-scale intergenerational transfer of wealth is underway, wherein the majority is expected to move within the wealthiest households, especially among the top 1% who hold control of a disproportionate share of assets. Besides, since the wealth is passing between generations, advisors face complexities in terms of inheritance dynamics and the long-term sustainability of wealth structures. Hence, navigating this necessitates proper family-centric approaches that integrate governance and cultural cohesion along with technical estate planning, thus benefiting the overall family office market.
• Demand for management solutions: Affluent families prefer customized services such as investment strategy, tax planning, and estate management, when compared to standardized financial products offered by banks or asset managers, contributing to the family office market growth. In this regard, Citi Wealth in September 2025 published a global family office report that highlights a resilient and optimistic family office sector, in which most of the portfolios held steady despite the presence of geopolitical tensions, trade disputes, and market volatility. Besides, the same report highlights that family offices remain strongly focused on direct investments, portfolio resilience, and active management, by reassessing jurisdictions and asset locations regardless of the global policy uncertainty. Furthermore, the growing professionalization needs, particularly in risk management, cybersecurity, leadership succession, and the selective outsourcing of non-core functions, are positively impacting market growth.

Challenges

• Talent acquisition and retention: The family office market is facing severe challenges in terms of attracting and retaining top-tier talent, which includes investment managers, legal advisors, and wealth strategists. Also, the ultra-high net worth families require professionals who are capable of navigating through complex portfolios, multi-jurisdictional regulations, and bespoke investment strategies, adding a barrier for family office market expansion. In addition, this aspect of limited talent is exacerbated by competition from private banks, hedge funds, and fintech firms, which are offering lucrative packages. Furthermore, retention is also a complex process wherein turnover can disrupt goals and negatively impact continuity in family governance.
• Regulatory compliance: The family office market mostly operates under the complex regulatory environments across multiple jurisdictions. In this context, keeping up with tax laws, anti-money laundering rules, and securities regulations can be straining, especially for firms operating in price-sensitive regions. At the same time, falling short on compliance can cause hefty fines, loss of reputation, or even result in legal consequences. In addition, the challenge is amplified for multi-family offices or offices that are managing cross-border investments, requiring constant monitoring of regulations in various regions. Furthermore, navigating these rules without any overburden of operational efficiency requires proper compliance frameworks and investment in technology.