FAMILY OFFICES

“You will occasionally come across people who are exceptionally talented ... you can sense that their brain processor is just going faster. If you can collaborate with them, something great is going to happen, and your life will be very interesting.”

Eric Schmidt, Former CEO of Google

Background and History

According to the Preqin Global Alternatives Report, single and multi family offices, together with ultra high net worth Individuals (UHNWIs) command the global financial landscape. With over 20,000 of these entities worldwide, they collectively manage over $25 trillion in assets, a figure that dwarfs the global assets under management (AUM) in private equity ($11.12 trillion), venture capital ($1.68 trillion), and hedge funds ($4.0 trillion). This trend highlights the growing influence of family offices in shaping financial markets, making them an essential pillar in global wealth management and investment ecosystems.

Family offices trace back to ancient Rome, where the "Domus" represented the head of a household and managed family affairs, laying an early foundation for centralized family wealth management. However, the structure and sophistication of modern family offices took shape in the 19th century, reflecting the evolving needs of wealthy families amid the Industrial Revolution. This historical lineage showcases the longstanding human inclination toward wealth protection and familial legacy.

The 19th century witnessed the rise of the first modern family offices, coinciding with the emergence of private banks and trust companies that helped burgeoning industrialists manage and preserve their wealth. In 1838, J.P. Morgan founded the House of Morgan to manage his family's assets, setting a standard for wealth stewardship. In 1882, the Rockefeller family formalized this model by creating their family office, which is a testament to the enduring value of structured family asset management.

At its core, a family office serves as a private firm or partnership managing the wealth and affairs of one or multiple affluent families. These offices typically come in three forms: (1) Single Family Offices (SFOs), dedicated to a single family's financial, personal, and philanthropic needs; (2) Multi-Family Offices (MFOs), which manage the wealth of multiple families; and (3) sovereign family offices for royal or sovereign families, primarily in regions with a strong tradition of centralized, family-based governance.

The recent boom in family office formation, particularly in emerging and frontier markets, reflects the changing dynamics of wealth management. Family offices are established for various reasons: to reduce family conflicts, preserve wealth across generations, consolidate assets after the sale of a family business, and enhance control over investments. This growth trajectory indicates that many families view a family office as a strategic vehicle for wealth preservation and efficient wealth transfer, which has become a priority in today's globalized economy.

Governance within family offices is often streamlined compared to traditional investment institutions, featuring fewer committees and direct communication with family stakeholders. In contrast to single-family offices, multi-family offices tend to have more extensive governance structures, including boards of directors and audit committees. Each office's governance can be tailored to its unique needs, whether managing core business operations, overseeing investment portfolios, or handling foundations and philanthropic endeavors.

An iconic example of a family office is the one created by Laurene Powell Jobs following the death of her husband, Steve Jobs, the renowned founder of Apple and Pixar. When Steve Jobs passed away in 2011, his estate, managed by the Stephen P. Jobs Trust, transferred approximately $21.3 billion to Powell Jobs. Today, she remains one of the world's wealthiest women and continues to honor Jobs' legacy by supporting philanthropic and business ventures through her family office.

The concentration of family offices is not evenly distributed globally; certain countries have become hubs for these entities. The United States leads in the number of family offices, followed by China, India, and various European countries like Germany, the United Kingdom, and Switzerland. Wealthy families in emerging markets such as Brazil, South Korea, and the UAE have also established family offices, reflecting an increasing trend toward self-managed, private wealth management solutions across diverse regions.

Family offices are actively engaged across different regions, reflecting both the global nature of family wealth and the specific needs of families based on geography. Offices operate in developed markets and extend to areas such as the BRIC nations (Brazil, Russia, India, China), MINT (Mexico, Indonesia, Nigeria, Turkey), and other emerging regions in Africa, Eastern Europe, and Southeast Asia. Family offices' international presence underscores their adaptability and the need to navigate complex, cross-border financial landscapes.

Regional groupings and acronyms highlight the areas where family offices are particularly active, including BRIC, MINT, and other categories spanning Africa, Europe, and Asia. The acronyms, such as EEMEA, SEMEA, and CEE, reflect the diverse economic landscapes and investment opportunities that family offices tap into. Family offices benefit from geographical diversification by investing globally, reducing risk and accessing unique opportunities across 110 countries, collectively representing the global family office footprint.

Family Office Reports Summary

Family office reports for 2024 reveal that family offices are increasingly focused on private and alternative investments, particularly in real estate, private equity, and direct investments. These shifts reflect a broader trend towards diversification and a strategy to balance portfolios between stable developed markets and higher-yield opportunities in emerging sectors. Furthermore, family offices are becoming central to impact-driven wealth management, integrating philanthropic efforts, sustainable investments, and advanced technology to manage complex, multi-asset portfolios.

The younger generation is reshaping family office priorities, bringing fresh perspectives that emphasize social responsibility and environmental consciousness. This new cohort prioritizes values-driven investment, pushing family offices towards sustainable and socially impactful initiatives. With an increasing influence on family wealth, younger family members are advocating for portfolios that support community-focused projects, inclusive economic growth, and environmental health, ensuring that their investments resonate with a larger purpose beyond financial returns.

Impact and sustainable investing have become cornerstones of family office strategies, driven by the rising popularity of green bonds, renewable energy projects, and climate resilience initiatives. The shift to sustainability is not only aligned with environmental goals but also presents attractive long-term returns. By investing in companies with strong environmental, social, and governance (ESG) credentials, family offices are aiming to achieve financial growth while promoting a more sustainable global economy.

Diversity, equity, and inclusion (DEI) are also gaining traction as key pillars within family office investment philosophies. Many family offices are implementing DEI-focused criteria in their investment decisions, such as prioritizing firms with diverse leadership teams and equitable workplace policies. These efforts reflect a commitment to social equity and inclusion, demonstrating that wealth can be leveraged to support fairness and opportunity across economic and social divides.

Climate change remains one of the most significant drivers of investment strategy for family offices. With climate-related risks directly impacting financial stability, family offices are increasingly investing in technologies and initiatives that foster environmental resilience, including carbon capture, sustainable agriculture, and clean energy innovation. This approach is both a protective measure for long-term wealth preservation and a proactive step in the global effort to mitigate climate impacts.

Incorporating these values, family offices are poised to be at the forefront of transformative wealth management, blending financial objectives with a commitment to positive societal impact. This values-driven approach positions family offices as influential players in promoting sustainability, equity, and resilience in the global financial landscape.

Family Office Data: City, Country, and Related Data

Here is an updated list with estimated percentages showing the changes in assets under management (AUM) for family offices, billionaires, and UHNWIs in key cities worldwide:

  • New York, USA: 120 billionaires, 1,200 family offices, 9,000 UHNWIs – AUM increasing by approximately 8%.

  • London, UK: 90 billionaires, 950 family offices, 6,500 UHNWIs – AUM increasing by approximately 6%.

  • Hong Kong, China: 80 billionaires, 800 family offices, 5,000 UHNWIs – AUM decreasing by about 2% due to regional instability.

  • Dubai, UAE: 40 billionaires, 500 family offices, 2,500 UHNWIs – AUM sharply increasing by around 12%.

  • Zurich, Switzerland: 60 billionaires, 600 family offices, 4,000 UHNWIs – AUM stable, with a slight increase of 1%.

  • Singapore: 45 billionaires, 700 family offices, 3,800 UHNWIs – AUM increasing by about 10%.

  • Paris, France: 30 billionaires, 450 family offices, 2,000 UHNWIs – AUM stable, around 1% growth.

  • Frankfurt, Germany: 35 billionaires, 500 family offices, 2,500 UHNWIs – AUM increasing by approximately 3%.

  • Tokyo, Japan: 50 billionaires, 400 family offices, 3,500 UHNWIs – AUM stable, minor increase of 1%.

  • São Paulo, Brazil: 25 billionaires, 350 family offices, 1,800 UHNWIs – AUM increasing by about 5%.

  • Geneva, Switzerland: 30 billionaires, 400 family offices, 1,500 UHNWIs – AUM increasing by 4%.

  • Los Angeles, USA: 55 billionaires, 500 family offices, 3,200 UHNWIs – AUM increasing by approximately 6%.

  • Shanghai, China: 35 billionaires, 300 family offices, 2,200 UHNWIs – AUM decreasing by about 3%.

  • Beijing, China: 40 billionaires, 350 family offices, 2,400 UHNWIs – AUM stable, around 0%.

  • Moscow, Russia: 22 billionaires, 200 family offices, 1,000 UHNWIs – AUM decreasing by around 5%.

  • Mumbai, India: 25 billionaires, 250 family offices, 1,800 UHNWIs – AUM increasing by 7%.

  • Toronto, Canada: 30 billionaires, 400 family offices, 2,100 UHNWIs – AUM stable, minor growth at 2%.

  • Miami, USA: 20 billionaires, 250 family offices, 1,700 UHNWIs – AUM increasing by 9%.

  • Monaco: 15 billionaires, 100 family offices, 800 UHNWIs – AUM stable, no major changes.

  • Sydney, Australia: 25 billionaires, 300 family offices, 1,900 UHNWIs – AUM increasing by approximately 5%.

  • Riyadh, Saudi Arabia: 15 billionaires, 150 family offices, 900 UHNWIs – AUM increasing by about 8%.

  • Seoul, South Korea: 20 billionaires, 200 family offices, 1,300 UHNWIs – AUM increasing by 6%.

  • Istanbul, Turkey: 12 billionaires, 150 family offices, 1,000 UHNWIs – AUM stable, with slight growth of 1%.

  • Amsterdam, Netherlands: 10 billionaires, 200 family offices, 1,200 UHNWIs – AUM stable, minor increase of 2%.

  • Bangkok, Thailand: 8 billionaires, 120 family offices, 900 UHNWIs – AUM increasing by around 4%.

  • Mexico City, Mexico: 10 billionaires, 150 family offices, 1,100 UHNWIs – AUM stable, no significant changes.

  • Luxembourg: 5 billionaires, 80 family offices, 600 UHNWIs – AUM increasing by approximately 7%.

  • Melbourne, Australia: 15 billionaires, 200 family offices, 1,100 UHNWIs – AUM increasing by around 3%.

  • Vienna, Austria: 8 billionaires, 100 family offices, 700 UHNWIs – AUM stable, minor change of 1%.

  • Oslo, Norway: 7 billionaires, 90 family offices, 600 UHNWIs – AUM stable, around 0%.

These figures showcase global hotspots where wealth is either rapidly growing or stabilizing, highlighting areas where family offices, billionaires, and UHNWIs have increased their influence and presence.

Family Office By Regions and Relevant Acronyms

Here's an organized list of global regions and relevant acronyms where family offices are active, reflecting their investment reach and geographical focus:

  • BRIC: Brazil, Russia, India, and China

  • MINT: Mexico, Indonesia, Nigeria, and Turkey

  • CIVETS: Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa

  • Next 11 (N-11): Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea, and Vietnam

  • EEMEA: Eastern Europe, the Middle East, and Africa

  • SEMEA: Southern Europe, the Middle East, and Africa

  • CEMEA: Central Europe, the Middle East, and Africa

  • CEE: Central and Eastern Europe

  • MENA: Middle East and North Africa

  • EUMENA: Europe, the Middle East, and North Africa

  • EMEIA: Europe, the Middle East, India, and Africa

  • EMEACIS: Europe, the Middle East, Africa, and the Commonwealth of Independent States

  • EMEAC: Europe, the Middle East, Africa, and the Caribbean

  • CIS: Commonwealth of Independent States, covering countries around the Black Sea and the Caspian Sea

  • NACE: North Atlantic and Central Europe

  • CEMA: Central Europe, Eastern Europe, the Middle East, and Africa

  • APAC: Asia-Pacific, covering East Asia, South Asia, Southeast Asia, and Oceania

  • LATAM: Latin America, including South and Central America

  • SSA: Sub-Saharan Africa, focusing on African countries south of the Sahara Desert

  • EMEA: Europe, the Middle East, and Africa (often used by North American firms to reference these three regions collectively)

This list highlights the global scope of family office activities, with each region offering unique investment opportunities and cultural contexts

Family Office Reports and Surveys

The market offers excellent numerous high-quality reports and surveys that provide valuable insights into family offices. These reports are typically published annually and include but are not limited to:

  • UBS Global Family Office Report

  • Credit Suisse Single Family Office Survey Report

  • BlackRock Global Family Office Survey

  • Citi Report – Direct Investment by Family Offices

  • Dentons Family Office Direct Investing Report

  • Goldman Sachs Family Office Survey

  • North America Family Office Report – RBC (in collaboration with Camden)

  • Morgan Stanley Single Family Office Best Practices Report

  • PwC Family Office Deals Study

  • The Global State of Family Offices – Capgemini

  • KPMG/Agreus Family Office Report

  • Preqin Family Office Reports; and

  • JP Morgan Private Bank’s 2024 Global Family Office Report

These resources serve as essential tools for understanding trends, challenges, and opportunities in the family office sector.