Family Office Market Trends
Growth Indicators
Increasing Wealth of High-Net-Worth Individuals (HNWI)
Growing investment in fashion, technology, real estate and financing has drastically increased the wealth of high-net worth individuals across the world during the past three decades. During the era of Dot Com Boom, many giant organizations grew their assets multiple fold, therefore creating opportunities for other companies across the world. Additionally, the significant growth of billionaires was led by the high returns gained across almost all major asset classes, despite a loss of momentum in the global economy and turbulent geopolitical environment. Moreover, despite the trade wars, slowing global growth and the volatile stock market, the total number of millionaires in the world increased significantly.
Numerous Benefits Associated With Family Office
The family office plays an important role in asset management of HNWI. It further helps the HNWI with succession planning within the business to expand in different regions worldwide. Wealthy families are setting up family offices with a growing interest in sustainability and impact investing. Most family offices are established as a result of the management of succession and transfer of wealth from one generation to another. Moreover, family offices also provide greater confidentiality & privacy and higher returns, and further ensures that there is good governance and better alignment of interest. It further addresses a wide range of complexity of the financial services demanded by the HNWIs. Such factors are anticipated to drive the growth of the global family office market.
Challenges
High Cost of Operation
One of the major challenges faced by family offices is to control the cost of operations, which includes staffing costs, operational cost of running IT systems and the overhead administrative costs. The challenges observed in structuring the family office to maximize cost-effectiveness and expense deductibility is causing great concerns amongst the family office members, which is anticipated to restrain the family office market growth during the forecast period.
Family Office Market: Key Insights
The global family office market is segmented by regions into North America, Latin America, Europe, Asia Pacific, Middle East and Africa. Among these regions, the market in North America registered the largest share of 44.63% along with a value of USD 7.90 billion in the year 2019 and is further expected to reach a value of USD 11.99 billion by the end of 2028 by growing at a CAGR of 4.74% during the forecast period. Presence of numerous ultra-high-net-worth individuals who are increasingly establishing family offices in order to have greater control over their investments, along with the fact that the financial services for HNIs are not fulfilled by wealth management firms and private banks, are some of the factors raising the demand for establishing family offices in the region, which in turn is anticipated to drive the market growth in North America.CLICK TO DOWNLOAD SAMPLE REPORT
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
6.4% |
|
Base Year Market Size (2024) |
USD 19.09 billion |
|
Forecast Year Market Size (2037) |
USD 42.76 billion |
|
Regional Scope |
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