The North America Family Office Report 2022 (2024)

FAQs

What is the average wealth of a family office? ›

The wealth manager's annual survey of global family offices this year included responses from 320 families around the world with an average net worth of US$2.6 million, and liquid net assets of about US$1.3 billion, on average.

Family offices specialize in managing ultra-high-net-worth individuals (UHNWI), with a net worth of $250 million for a traditional family office and at least $30 million for multi-family offices.

As of 2019, there are more than 7,300 single-family offices around the world. 68% of family offices are located in North America and Europe. The average family wealth of family offices is USD 1.6 billion. Of the $5.9 trillion managed by family offices, $3.4 trillion is managed by single-family offices.

Family offices are private wealth management advisory firms catered particularly to ultra-wealthy families, managing their personal and financial matters. For everyone else, there are financial advisors.

A family office is a private wealth management firm for UHNWIs and wealthy families. You'd need at least US$30 million in investable assets to meet this criteria in Singapore. The objective is to oversee familial wealth for preservation across generations.

- Cons: Complexity in governance, potential conflicts among families, shared liabilities. - Pros: Consolidation of assets, potential tax benefits, centralized control. - Cons: Complexity in structure, potential legal liabilities, possible lack of flexibility.

Ultra-high-net-worth individuals (UHNWIs) are people with a net worth of at least $30 million. Their ranks continue to grow globally. Net worth is the value of the assets a person or corporation owns, minus the liabilities they owe.

Expenses typically run 1% to 2% of the value of the family's wealth, meaning that for a family with assets totaling $100 million, running a family office generally costs between $1 million and $2 million annually. But even if you have that amount of wealth, you still need to choose a type of family office.

Family offices generate revenue through a combination of investment management fees and performance-based incentives.

How many employees for a family office? ›

A family office can consist of as few as two people or as many as 350 or more. A wide range of family office models are in use today. There are a number of key differences between single family offices, which is our focus here, and multi- family offices that serve several unrelated families.

The Family Office industry is riding a wave of growth. New sources of wealth and growing business fortunes have driven an unprecedented expansion in the adoption of the Family Office model, with one leading data provider saying their numbers increased threefold between 2019 and 2023.

How much money do you need to open a family office? Although there is no minimum amount needed to open your own single-family office, it is advised that you have a net worth of at least $100 million before starting a family office.

A family office is a privately held company that handles investment management and wealth management for a wealthy family, generally one with at least $50–100 million in investable assets, with the goal being to effectively grow and transfer wealth across generations.

Rothschild & Co has a unique culture in part due to its more than two-century history and the firm still remaining under family control.

The ideal balance matches the family's time frame and risk appetite. According to Goldman Sachs, family offices' asset allocation tends to have outsized exposure to alternative investments. On average, 45% combined allocation to private equity, real estate, private credit, and hedge funds.

A family office can consist of as few as two people or as many as 350 or more. A wide range of family office models are in use today. There are a number of key differences between single family offices, which is our focus here, and multi- family offices that serve several unrelated families.

Average Net Worth of an American Family

Both median and average family net worth surged between 2019 and 2022, according to the U.S. Federal Reserve. Average net worth increased by 23% to $1,063,700, the Fed reported in October 2023, the most recent year it published the data.