wealth

Transparency on Family Offices

by

July 11, 2013

This week some new data about family offices was published by Wealthinsight, a British information provider.

Its latest research provides some transparency into the wealth management market.

It said that there are 16.8 million high net worth individuals globally, and more than 5,000 family offices managing their money, as of the end of 2012. It is pretty clear from the numbers (see points 4 and 5 below) that despite there being vast sums of wealth globally and a remarkably large number of estimated family offices, most of the world’s richest people are managing their money in other ways than by creating and using a family office support system.

Key findings

• Worldwide wealth held by individuals amounted to USD 195 trillion.

• There were 16.8 million HNWIs in the world and worldwide HNWI wealth stood at USD 66 trillion.

• Assets managed by worldwide wealth managers, private banks and family offices totaled USD 19.3 trillion. USD8.3 trillion of this was held in offshore centers.

• There were more than 5,000 family offices operating globally, the majority of which were based in the US and Europe. This includes 2,700 single family offices (SFOs) managing approximately USD 1.7 trillion in assets and 2,300 multi-family offices (MFOs) managing USD 800 billion in assets.

• Together, the global family office industry managed USD 2.5 trillion, which accounted for 13% of global wealth management assets under management (AuM) (USD19.3 trillion) and 3.7% of global HNWI wealth (US$66 trillion).

• There were over 2,900 family offices in the US.

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