Family Office Market by Office Type (shareholders office, philanthropy office, compliance office, family enterprise office, trustee office, investment office, multi-generational office, founders office, others), Segment Type (single family office, multi-family office, embedded family office, virtual family office), Managed Net Worth (50 million to 100 million, less than 50 million, more than 100 million), Asset Type (art and artifacts, precious metals, traditional asset classification, alternative asset classification), Application (financial planning, advisory, governance, strategy), Region (North America, Asia-Pacific, Europe, South America, Middle-East and Africa) Global Forecast 2018 to 2028

Covid-19 Impact and Market Status

The covid-19 pandemic adversely affected almost all businesses across the world. The restrictions made in international trade and travel led to severe losses for most businesses which in turn caused the downfall in the global economic market. The shutdown of several businesses and the slowdown of the stock markets led to a negligible return on investments made, thus adversely affecting the global family office market. Several individuals suffered losses on the investments made.

In 2022, the market for family offices worldwide was valued at US$ 18.6 billion. the market is expected to grow at a compound annual growth rate (CAGR) of 5.00% from 2023 to 2028, reaching US$ 25.4 billion.

The ability to secure and engage future generations will drive the market growth

The set-up of family offices by wealthy families will help to contribute toward the next generation of leaders in the family who will get the opportunity to learn and grow in the already established offices of the family, thus significantly boosting the global family office market. The future generation will be able to contribute to the mission and vision of the family office. The presence of next-generation members will accelerate the growth of the family office due to the presence of a dynamic culture along with plannings to achieve long-term goals.

Multi-Office type will hold a major market share

The multi-family office provides the facility of managing individual finances and properties of different families with the help of a team of experts. For wealthy families, the formation of multi-family offices helps to grow and create wealth. A multi-family office can help in better retirement planning as well as serve as an excellent resource for the family’s heirs.  Multi-offices provide a higher amount of control that can be retained by a family thus boosting the growth of the global family office market. Multi-offices facilitate wealthy families with expertized consultants to smoothly manage their business operations.

The maximized wealth of High-Net-Worth Individuals will boost the global market

Recently there has been significant growth of billions due to immense returns on the assets invested which in turn increased the wealth of high-net-worth individuals. The expanding investment in finance, technology and fashion has extremely boosted the economy of high-net-worth individuals. The tremendous economic growth of individuals led to the formation and expansion of the global family offices market.

The ability to provide increased efficiency and quality management of family wealth will drive the growth of the global family office market.

The demand for better asset management maximized demand for family offices.

The family office helps a family to strategize and accomplish their long-term goals by expanding their financial wealth and fulfilling the family requirements. A family office serves fruitful to all generations of the family and provides better team management, services and scalability. Family offices enable higher returns on investment due to the presence of customized capital management as per needs. The complete pool of capital for a family helps to influence and attract quality investments which lead to the availability of excellent investment options. Family offices provide the freedom to select the best investments that can grow in the market. A family office involves comparatively low expenditure than any other private organization. The involvement of family members in the core of a family office helps to effectively plan their mission and goals towards success. Family offices provide efficient management because of proper delegation and execution of business operations. Serving as the core member of several portfolio companies owned by the family will engage the family member and grow employment among the family members, thus driving the global family office market. A family office provides improved monitoring to all layers of the business. The global family office market is expected to grow at a CAGR of 6.27% and reach an estimated market value of USD 25.28 Billion during the forecast period.

Furthermore, extremely wealthy families can better utilize their wealth with the formation of family offices. The ability to provide extreme confidentiality to family finances deals will significantly grow the global family office market. The family office provides expertized advice on the personal assets and wealth of individual family members with the help of a wealth manager. A family office enables optimal allocation of capital funds considering the stock portfolios and property. The diversified investment through family offices helps to reduce the risk. Appropriate strategies involved in family offices help to store wealth for the future generations of the family.

Although having several benefits, certain factors can slow down the growth of the global family office market. As the population of the family maximizes there are chances of differing ideologies that can lead to severe disputes within the family. Individual family members can expect an increased return on investment that may lead to a scope creep in the family office thus slowing the growth of the global family office market. The family office usually has lesser funds compared to an institutional body which may arouse the risks of not coping with business shocks.

The key market players in this segment are Hawthorn, Glenmede, Stonehage Fleming Family & Partners, Atlantic Trust, Wilmington Trust, Abbot Downing, U.S. Trust Family Office, UBS Global Family Office Group, BNY Mellon Wealth Management, Cambridge Associates, Citi Private Bank, Northern Trust, Pictet, HSBC Private Bank, and Bessemer Trust. The top players have shown exceptional performance to compete in the global family office market.

Technical Advancements in the Global Family Office Market: A Snapshot

On April 29 2021, HSBC launched its Institutional Family Office service to enable single-family office clients to access their investment banking specialists and attain excellent investment solutions

Family Office Market Scope

Key Segment Of The Family Office Market

By Type,   (USD Million)            
    •    Single Family and 
    •    Multi-Family Office
By Office Type,  (USD Million)
    •    Founders’ Office
    •    Multi-Generational Office 
    •    Investment Office 
    •    Trustee Office 
    •    Compliance Office 
    •    Philanthropy Office 
    •    Shareholder’s Office 
    •    Others
By Managed Net Worth,  (USD Million)
    •    Less than 50 Million
    •    50 Million to 100 Million 
    •    More than 100 Million
Regional Overview,  (USD Million) 
North America
    •    US
    •    Canada
Europe
    •    Germany
    •    France
    •    UK
    •    Rest of Europe
Asia Pacific
    •    China
    •    India
    •    Japan
    •    Rest of Asia Pacific
South America
    •    Mexico
    •    Brazil
    •    Rest of South America
Middle East and South Africa