The global wealth management landscape is undergoing a significant transformation, with multi-family offices (MFOs) emerging as pivotal players in serving ultra-high-net-worth (UHNW) families. This shift is driven by the increasing complexity of wealth management, the need for specialized expertise, and the desire for cost-effective solutions.
Global Expansion and Influence
Family offices have seen remarkable growth, with approximately 15,000 offices worldwide managing an estimated $5.9 trillion in assets. This expansion underscores their significant role in the global financial ecosystem, providing capital and support to various sectors and regions. (Financial Times).
The Club Deal Phenomenon
A notable trend among family offices is the preference for “club deals,” where multiple families co-invest in opportunities. In the first half of 2023, 59% of family office direct investments were structured as club deals, reflecting a strategic move towards risk-sharing and collaborative investing. (PwC report 2023 and PwC article April 2023).
Trends in Family Offices
Positive movement toward club deal, impact investing, and professionalizing family office management.
Embracing Impact Investing
Family offices are increasingly aligning their investment strategies with social and environmental values. By 2024, 54% of U.S. family offices were engaged in impact investing, doubling the participation from 2015. Key sectors attracting these investments include healthcare, education, and renewable energy. (PwC Family Office Deal Study 2022 and 2024)
Professionalization and Governance
The evolution of family offices into sophisticated entities is evident, with a focus on professional management and robust governance structures. However, challenges remain, as highlighted by KPMG’s 2023 report, which found that 52% of family offices lack a formal board, and 48% have no succession plan in place. (KPMG Asset Report 2023)
About GLOFOS. The Global Family Office Syndicate (GLOFOS) is a non-profit organization that brings together multi-family and family offices around the world to form an alliance of collaboration and influence. The Member Firms collaborate on deal flow and share professional resources such as offices, local professional service providers, and global contacts in banking, trade financing, resources, commodities, and other.
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