For ultra high net worth (UHNW) families, wealth is more than a luxury; it’s a legacy that requires careful management to preserve, grow, and transfer over many generations. As the financial landscape becomes more complex — with investments spanning global markets, real estate, philanthropy, and more — wealth management requires an increasingly more personal touch than third party firms can sometimes provide on their own. Family offices have emerged to answer the call, giving wealthy principals and their heirs more hands-on control of their considerable assets.
Defining the Family Office Landscape 2024, a recent Deloitte report powered by data from Wealth-X, offers deep insights into the rapidly evolving family office landscape, and how UHNW individuals are navigating legacy, long-term goals, and intergenerational philanthropy. For wealth managers, non-profits and other financial service providers, the growth of family offices represents a significant opportunity for engagement and partnership, if you have the right people intelligence to act on.
What is a family office?
A family office is a private, financial advisory firm that provides comprehensive and personalized wealth management services for UHNW families. They offer an unparalleled degree of privacy, control, and customization, making them especially attractive to families with complex financial structures and long-term legacy goals.
Family offices can either be “in-house” for managing the multi-generational assets of a single family, or a joint enterprise supporting wealth management for multiple families. These offices oversee investments, tax management, philanthropy, wealth governance, succession, and any matters associated with the long-term financial interests of a family. Ultimately, they are designed to ensure wealth preservation across generations.
The origin of family office wealth
The concept of family offices dates back to aristocracy, but they didn’t emerge as a modern concept until John D. Rockefeller established the first office in 1882. At the time of his death, his family wealth was $1.4 billion, equivalent to $255 billion today. Now, Deloitte reports that global family offices have a collective $3.1 trillion in assets under management (AUM). Research shows a clear link between this fortune and the industries driving modern wealth accumulation.
According to Wealth-X data commissioned by Deloitte Private, 26% of family office principals come from the banking and finance sectors, followed by industrial conglomerates (17%), real estate (8%), and food and beverages (8%). In spite of this, family offices are breaking close ties to their family’s operating businesses. In a Deloitte survey, 38% of respondents expect them to become independent structures. In addition, 36% of family offices are likely to broaden their services. Sustainability is also a growing priority, with 32% predicting that shifting towards sustainable investments and technology.
The rise of the global family office
Deloitte reports there were an estimated 8,030 single family offices in the world as of 2024, up by 31% from just 6,130 in 2019. Wealth-X’s commissioned data predicts the number of global family offices will grow by an additional 33% to 10,720 by 2030, marking a 75% increase over this decade-long period. The volume of family office AUM is expected to increase just as much, from $3.1 trillion to $5.4 trillion by 2030.
Historically, North America has led in the growth of family offices, but that trend is shifting. Today, there are an estimated 3,180 single family offices in North America, with 2,290 in the Asia Pacific region, and 2,020 in Europe. The Middle East, South America, and Africa have the smallest concentrations of family offices, with 290 in the Middle East, 190 in South America, and 60 in Africa. Moving forward, Wealth-X predicts that Asia Pacific is expected to outpace North America in terms of new family office creation.
As wealthy families become more serious about securing their legacy for generations, we can only expect continued investment in preservation strategies.
What’s more, Deloitte reports that 28% of family offices already have multiple branches to manage increasingly diversified — and global — portfolios. One in 10 family offices in North America and Europe opened secondary branches outside of their regions for international representation. Meanwhile, the vast majority of additional family office branches in the Asia Pacific region (61%) went abroad, with 38% setting roots in North America, and 23% in Europe. Deloitte found that one in 10 principals expect to establish future family offices internationally.
The evolving makeup of global family offices
According to Deloitte’s survey, 73% of respondents expect family offices to keep growing in numbers, but it’s not just about more offices. Many respondents believe family offices will become more professionalized and institutionalized (66%), with increasingly diversified portfolios across different asset classes and regions (55%).
When it comes to staffing, Deloitte reports that family offices typically pull talent from the financial services industry (64%), followed by accounting firms (44%) and consulting firms (25%). However, because they handle such a broad range of responsibilities — like tax planning, estate management, and legal services — they often draw other talent to meet specific needs. The makeup of each family office is largely determined by the specific needs of the family it’s servicing.
Surprisingly, the average family office operates with a relatively small team of just 15 employees, managing an average of $2 billion in assets. Larger offices have around 23 staff members, while smaller offices usually run with just 10.
The demographics behind family offices are also changing to reflect greater gender equity and inclusion. Women now comprise 15% of global family office principals, highlighting not only greater access to wealth for women, but a growing ability to take on leadership roles in their family enterprises. Europe leads with 20% of family office principals as women, followed by 21% in Africa, 18% in the Asia Pacific region, 17% in South America, 12% in North America, and 10% in the Middle East.
These principals are the real decision-makers who drive the strategic direction of their family offices. For financial service providers looking to collaborate, these individuals are priority contacts to establish. Connecting with the leaders of family offices — whether it’s developing investment partnerships or building philanthropic initiatives — is key for successful engagement.
Breaking the “shirtsleeves to shirtsleeves” cycle
The world of wealth is familiar with stories of financial legacies ending in just three generations: one generation to build the wealth, the second to enjoy it, and the third to squander it. The “shirtsleeves to shirtsleeves” adage is certainly reflected in the current number of global family offices. Deloitte reports that 41% serve first generation UHNW families, while only 19% serve third-generation wealthy families. What’s more, 68% of all family offices were established after the turn of the millennium.
As wealthy families become more serious about securing their legacy for generations, we can only expect continued investment in preservation strategies. Family offices will continue to expand in both talent and scope, with multiple branches, diverse staff and consultants, global reach, and incredible opportunities for the service providers and institutions ready to work with them.
Reaching the global family office decision makers
Altrata, powered by Wealth-X, offers unmatched insight into the global family office landscape, with in-depth data on financial ecosystems and key decision-makers at each organization. Harnessing this data will enable users to create new opportunities for meaningful collaboration and growth for stakeholders in a variety of industries:
- For financial services: Identify global family office CEOs and principals actively seeking investment opportunities and position your institution as a trusted partner for innovative and tailored collaboration.
- For non-profits: Pinpoint philanthropically inclined family principals and CEOs to build mutually beneficial partnerships and align your mission with their values to secure long-term support.
Altrata enables teams across industries to build direct connections with influential decision-makers to better navigate the nuances of the UHNW landscape. For more, check out our guide, Effectively Prospecting the Ultra Wealthy, where we share strategies for discovering, researching, and engaging wealthy and influential individuals.
Ready to elevate your approach? Schedule a free demo and see how Altrata can unlock new opportunities with family offices.