Global family wealth is projected to reach $9.5trn by 2030, driving a 75% rise in the number of family offices, a recent report from the consultancy Deloitte Private shows. Part of its ‘Family Office Insights Series,’ the report, on 4 September 2024, highlights significant growth in family offices worldwide, with an estimated 8,030 currently in operation, compared to 6,130 in 2019. This marks a 31% increase over four years, with the total expected to reach 10,720 by 2030.
The sector, comprising entities that manage the wealth of affluent families, has also seen substantial increases in assets under management. The report estimated that total AUM stands at $3.1trn, with projections of a 73% rise to $5.4trn by 2030. Deloitte Private’s research further noted that the wealth of families with family offices currently amounts to $5.5trn, up from $3.3trn in 2019. By 2030, this wealth is expected to grow to $9.5trn, marking a 189% increase over the 11-year period.
The global expansion of family offices has been particularly prominent in North America and the Asia Pacific region. North America currently hosts 3,180 family offices, with forecasts suggesting that this number will nearly double from 2,210 in 2019 to 4,190 by 2030--a 90% increase. Asia Pacific, with 2,290 family offices, has surpassed Europe, which has 2,020, and is expected to outpace North America in terms of growth rate through 2030.
Key growth drivers
The surge in family office numbers has been attributed to a combination of increased wealth concentration, successful generational wealth transfers and the growing prominence of private equity and mergers & acquisitions markets, notes Deloitte. Family offices have also sought more customised investment strategies, with Deloitte Private’s analysis finding that many are expanding their services, refining their talent strategies and managing their investments to ensure operational efficiency amid ongoing economic challenges.
Deloitte concluded that family offices have been instrumental in creating wealth across generations, with many focusing on providing tailored investment management and advisory services. Rebecca Gooch, Deloitte private global head of insights, stated in the report that family wealth has been growing at a “meteoric pace,” driven by the success of operating businesses and broader investments. She also mentioned that this influx of new wealth is transforming the global financial landscape, spurring demand for more sophisticated wealth management structures.
A considerable 68% of all family offices were founded after the year 2000, a trend that aligns with the notable rise in family wealth since that time. The report also revealed that most family offices today serve first (41%), second (30%) and third (19%) generation families, reflecting the ongoing wealth creation and intergenerational transfer processes.
Leadership trends
The report provided a detailed breakdown of family office locations, highlighting that North America and Asia Pacific remain the most attractive destinations for family office expansion. Currently, 28% of family offices have more than one branch, with 12% of respondents indicating plans to establish additional branches. Of these, 34% targeted North America and 34% aimed to expand into Asia Pacific, compared to 24% for Europe.
Deloitte also reported a rise in women serving as principals within family offices, currently accounting for 15% of the total globally. Regionally, Africa led with 21% of family offices headed by women, followed by Europe at 20%, Asia Pacific at 18%, and South America at 17%. North America and the Middle East trailed with 12% and 10%, respectively. The report found that women were more likely to utilise family offices for their wealth management, representing 15% of family office principals with $100m or more in wealth, despite only constituting 10% of ultra-high-net-worth individuals globally.
Looking ahead, Deloitte’s research, based on a survey of 354 single family offices, indicated that 73% of respondents anticipate continued expansion in the number of family offices. Additionally, 66% expect these offices to become more institutionalised and professionally managed. Furthermore, 55% foresee greater diversification of asset classes and geographic investment portfolios. A notable 38% predict a shift towards greater independence from the families' core operating businesses. The surveyed family offices managed an average of $2bn in assets, while the families associated with them had an average wealth of $3.8bn.
Technological advancement and sustainability are also expected to shape the future of family offices. The report found that 33% of respondents believe there will be increased adoption of digital technology for operations, while 32% expect a growing emphasis on sustainable investments and practices.