Asia has surpassed Europe in financial asset management, holding more family offices than the European region. A recent Deloitte report indicated that assets under management will increase by almost three-quarters by the end of the 2020s.
Key takeaways
- Asia currently holds more family offices than Europe, having 2,290 family offices while Europe only has 2,020.
- The United States is currently the region with the highest number of family offices worldwide, projecting a 100% increase by the end of 2030.
- According to Deloitte, by 2030 Asia is expected to surpass the USA in family office numbers.
The report, titled Family Office Insights, indicated that there are currently 8,030 single-family offices in the world, showing growth compared to the 6,130 in 2019. The estimated wealth of families with family offices currently stands at US$5.5 trillion, up from US$3.3 trillion in 2019, and is expected to grow to US$9.5 trillion by 2030 – a 189% increase. The report predicts continued growth, increasing institutionalization and professional management, greater investment diversification, and an expansion of service offerings.
The study conducted by the firm also analyzes various areas of the financial and investment world such as:
The number of family offices worldwide
The United States is currently the region with the highest number of family offices worldwide, projecting a 100% increase by the end of 2030. Asia is considered the second region worldwide with the highest number of family offices, surpassing Europe, with figures of 2,290 compared to 2,020 for Europe. According to the growth projections in the report, Asia is expected to surpass the USA in family offices.
Personal investments
According to data provided by the report, by 2030, the number of assets under management is expected to reach 10,720, showing an increase of 73%. The main factors behind the current growth are the greater concentration of wealth in the world, the successful transfer of generational wealth, receptive private equity and M&A markets, and the need for more personalized investment strategies and services.
Increasing gender equality
One of the most relevant points of the report is that the role of women in family offices is increasing, with more active participation in executive positions. According to the report, 15% of women will begin to hold executive positions in family offices internationally.
Types of asset management: new rich vs traditional rich
The report indicated that family offices currently manage assets from the nouveau riche, with 41% of family offices managing first-generation wealth. Only 30% of family offices manage assets from second-generation wealth, and only 19%, traditionally the main segment, manage third-generation wealth and beyond.
The future of the family office
The family office arena is expected to grow rapidly, with an expansion in the number of family offices worldwide, increased institutionalization and professional management, and greater asset class and geographic investment portfolio diversification.
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