The release of Deloitte Private’s second report in its Family Office Insights Series – Global Edition, Defining the Family Office landscape, outlines the world of family offices—”what they are, how they’re growing, their future outlook, and more.”
As family offices continue rapid global expansion, Deloitte Private’s research reveals that these organizations “expect increased wealth creation and enhanced influence in the investment community.”
Wolfe Tone, Deloitte Private Global leader, Deloitte Global said:
“This latest edition of Deloitte Private’s Family Office Insight Series highlights the unique points of view of family offices, shining a light on where they are today and their prospects for the future. Globally, family offices are expanding rapidly by focusing on their growing presence throughout different areas of the world, asset base, industry impact, and what makes a family office successful. As they continue to navigate ongoing economic challenges and geopolitical uncertainty, family offices are expanding their services, maturing their structures, focusing on their talent strategies, and carefully managing their investments to ensure sophisticated and efficient operations for the future.”
The family office arena has been growing rapidly, “reflecting the rise in family wealth globally—and this growth is expected to continue in the coming years.”
Family offices’ surge in popularity is driven by “a combination of factors, including increased wealth concentration, successful transfers of generational wealth, robust private equity and Mergers & Acquisitions markets, and the pursuit of more customized investment strategies and services.”
There are an estimated 8,030 single family offices “in the world today —a 31% increase from 6,130 in 2019.”
This number is projected to grow to 9,030 family offices “by 2025 (a 13% increase) and 10,720 family offices by 2030, marking a potential 75% rise in just over ten years.”
The North America region is expected to “undergo the greatest growth, with its number of family offices expected to nearly double from 2,210 in 2019 to 4,190 in 2030 – a 90% increase.”
However, Asia Pacific is gaining considerable steam and “has surpassed Europe in terms of its number of family offices (2,290 versus 2,020 for Europe).”
It is expected to outpace North America in “terms of its speed of growth between now and 2030.”
The rapid rise in the number of family offices, “alongside the tremendous growth in family wealth, is also expected to impact family offices’ total estimated AUM significantly.”
Today, family offices hold US$3.1 trillion in AUM. This number is “expected to increase by 73% to US$5.4 trillion in 2030.”
Family offices are branching out, “with North America and Asia Pacific topping the destination list.”
In line with the rapid expansion in the family office arena, “over a quarter (28%) of family offices now have more than one branch. One-in-10 (12%) plan to establish another branch, with North America and Asia Pacific currently proving to be the most attractive destinations—with 34% of family offices targeting each of these regions (compared to 24% for Europe).”
A notable 68% of all family offices have been “established after the millennium. Spurring this global growth is a meteoric rise in family wealth. In 2019, the total estimated wealth for families with family offices was US$3.3 trillion.”
Today, it is US$5.5 trillion, reflecting “a 67% increase since 2019, with expectations for it to rise to US$9.5 trillion by 2030.”
This constitutes an expected 189% rise in family wealth between 2019 and 2030. This influx of new money is changing “the face of wealth, with most family offices now serving first (41%), second (30%), and third (19%) generation families.”
Methodology
Deloitte Global surveyed 354 single family offices “from around the world between September and December 2023.”
These family offices oversee an “average asset under management (AUM) of US$2.0 billion, while the associated families have an average wealth of US$3.8 billion (total estimated AUM is US$708 billion and family wealth US$1.3 trillion).”
The report also conducted in-depth interviews “with 40 senior family office executives, representing some of the most prominent families in the world.”
The report and interviews offer “invaluable insights for family offices to navigate the landscape and plan for long-term success.”
