The family offices market size is expected to grow from US$ 17.42 billion in 2023 to US$ 28.13 billion by 2031; it is anticipated to expand at a CAGR of 6.2% from 2023 to 2031. Family offices are changing dramatically as more and more ultra-high-net-worth families want greater control over their investments. The Economist Intelligence Unit and DBS's "Family Office Boom" report claims that family offices are becoming more and more popular due to a number of factors, such as generational shifts, increased wealth concentration, and the desire for more personalized and direct investment strategies.
Family Offices Market Analysis
The report includes growth prospects owing to the current family offices market trends and their foreseeable impact during the forecast period. The extreme concentration of wealth among a few numbers of people and families has been one of the main causes, boosting the growth of the family offices market. The acquisition of significant wealth has necessitated a more sophisticated approach to wealth management, encouraging the formation of family offices to secure these assets. In addition, family offices are now operating in a new era of wealth management that is marked by a stronger focus on sustainability, technological integration, and social impact investing due to the growing influence of millennials and Generation Z. Family offices have therefore modified their tactics to take into account these shifting dynamics, fueling the family offices market growth.
Family Offices Market Overview
- A family office is a private wealth management organization that advises ultra-high-net-worth people (HNWIs). Family offices provide a comprehensive solution for managing an affluent individual's or family's financial and investing needs, setting them apart from standard wealth management businesses. For instance, many family offices provide budgeting, insurance, wealth transfer planning, tax services, charitable giving, and more, in addition to financial planning and investment management
- Family-owned enterprises may require succession planning structures such as trusts or a foundation for family assets. Owing to the intricacy of these circumstances, clients can make use of a family office to assist with wealth management and interest alignment. Non-financial matters like private education, vacation planning, and other domestic arrangements can also be managed by the family office. Family offices are usually classified as either single-family offices or multi-family offices (MFOs). Single-family offices cater to a single, extremely wealthy household. MFOs are more closely associated with traditional private wealth management activities. They aim to expand their clientele in order to grow their business.
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Family Offices Market: Strategic Insights
Market Size Value in US$ 17.42 billion in 2023 Market Size Value by US$ 28.13 billion by 2031 Growth rate CAGR of 6.2% from 2023 to 2031 Forecast Period 2023-2031 Base Year 2023
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Family Offices Market: Strategic Insights
| Market Size Value in | US$ 17.42 billion in 2023 |
| Market Size Value by | US$ 28.13 billion by 2031 |
| Growth rate | CAGR of 6.2% from 2023 to 2031 |
| Forecast Period | 2023-2031 |
| Base Year | 2023 |
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Family Offices Market Driver
Rising Number of High Net Worth Individuals
The number of high net worth individuals (HNWI) is continuously rising worldwide. According to Capgemini’s 2022 World Wealth Report, North America has witnessed the largest increase in HNWI population and wealth, by 13.2% and 13.8%, respectively. Similarly, APAC also witnessed HNWI growth in wealth by 5.4% and population by 4.2%. In addition, according to the same report, in 2021, the US, Japan, Germany, and China comprised around 63.6% of the global HNWI population, which increased by 0.7% from 2020. Also, the Ultra-HNWIs witnessed wealth and population growth of 9.6% and 8.1% respectively. At the same time, the Millionaires Next Door witnessed a population growth of 7.7% and wealth growth of 7.8%. Conversely, the growth in the Mid-Tier Millionaire population and wealth increased to 8.5% and 8.4%. Hence, as family offices can help high net worth individuals in managing financial and investing needs, the demand for family offices is rising worldwide, fueling the growth of the family offices market.
Family Offices Market Report Segmentation Analysis
- Based on product type, the family offices market is segmented into single family office, multi-family office, and virtual family office. The single family office segment is expected to hold a substantial family office market share in 2023.
- A single-family office provides a wide range of services, including specialized tax and compliance regulation and concierge services like real estate investment. To provide complete control over decision-making, a dedicated staff is chosen through family meetings to oversee these offices, thus ensuring high security and customized financial solutions.
- Furthermore, as security and personalized wealth management are crucial for ultra-high net worth families, the need for single family offices is expected to increase in the forecasted period.
- Moreover, a single-family office provides trust to the families that all financial matters are handled responsibly and privately. Thus, all the above factors will propel the growth of the single family office segment.
Family Offices Market Share Analysis By Geography
The scope of the family offices market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant family offices market share. The region's significant economic development, growing population, and increasing focus on financial inclusion across diverse economies have contributed to this growth. According to the Spectrem Group, in the US, there were around 11.6 million households that came under HNWI in 2020, which increased by 5.5% from 2019. Thus, the presence of such wealthy populations is driving the family offices market growth in the region.
Family Offices Market Report Scope
The "Family Offices Market Analysis" was carried out based on product type, asset class, and geography. In terms of product type, the market is segmented into single family office, multi-family office, and virtual family office. Based on asset class, the family offices market is segmented into bonds, equity, alternative investments, commodities, and cash or cash equivalents. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Family Offices Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the Family Offices Market. A few recent key market developments are listed below:
- In March 2023, Cascade Partners announced the acquisition of BlueWater Partners – a Grand Rapids, MI-based investment banking and restructuring/performance improvement firm. The acquisition of BlueWater Partners will cement Cascade Partners’ strategy to establish its presence in Grand Rapids, West Michigan, and Indiana. In addition, the acquisition will provide an opportunity for Cascade Partners to accelerate their capacity to deliver creative, value-driven solutions to client partners throughout West Michigan.
[Source: Cascade Partners, company Website]
Family Offices Market Report Coverage & Deliverables
The Family Offices Market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Family Offices Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product Type, Asset Class and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The growing adoption technological advancements is anticipated to play a significant role in the global family offices market in the coming years.
The global family offices market is expected to reach US$ 28.13 billion by 2031.
The global family offices market was estimated to be US$ 17.42 billion in 2023 and is expected to grow at a CAGR of 6.2 % during the forecast period 2023 - 2031.
The key players holding majority shares in the global family offices market are Walton Enterprises LLC, Cascade Investment, Bezos Expeditions, Bayshore Capital, and Mousse Investments Limited.
Rising number of high net worth individuals is the major factors that propel the global family offices market.
- Walton Enterprises LLC
- Cascade Investment
- Bezos Expeditions
- Bayshore Capital
- Mousse Investments Limited
- Ballmer Group
- Waycross Investment Management Company
- DFO Management LLC
- Emerson Collective
- Glenmede
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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