Family Office Market Expected to Reach $54.7 Billion by 2032

According to new report published by Allied Market Research, titled, “Family Office Market by Component, and Application: Regional Opportunity Analysis and Industry Forecast, 2023–2032,” The family office market size was valued at $27.23 billion in 2022 and is projected to reach $54.72 billion by 2032, growing at a CAGR of 7.5% from 2023 to 2032.  

A family office is a one-stop financial shop for the extremely wealthy. They serve as wealth management and financial advisors for high-net-worth clients typically focused only on the category termed as ultra high net worth. This is generally defined as anyone with $30 million or more to invest. A family office doesn’t work with people that have a seven-figure net worth.

Key players in the family office market adopted different strategies to sustain their growth in the market. For instance, in October 2020, Glenmede launched Delaware Trust company and this company will act as a different unit under Glenmede. The Glenmede Trust Company of Delaware is designed to advise and serve multi-jurisdictional families and international centers of influence, in addition to an existing domestic client base. The Glenmede Trust Company's Delaware office will collaborate with the new organization while maintaining its own identity. GTCDE will provide investment management and fiduciary services exclusively to clients whose financial affairs are managed in Delaware. Moreover, Hawthorn River enabled users to expedite their entire loan process in January 2020 by launching Hawthorn River Lending on Salesforce AppExchange. By combining the Salesforce platform with decades of banking expertise from Hawthorn River, the integration gives community banks a potent tool to boost operational effectiveness, improve borrower experience, and streamline regulatory compliance.

Furthermore, in January 2024, Citi and Lumin Arx Capital collaborated and launched Cinergy, a strategic financing vehicle in the rapidly growing private lending market. Launched by Lumin Arx Capital, Cinergy will offer a broad range of private credit solutions to companies, including Citi’s global client base. It will invest across multiple asset classes, including asset-backed credit (commercial, consumer and residential) and corporate debt across the capital structure.

Moreover, In July 2023, JP Morgan Private Bank launched US.family office practice, a new effort that will support the Private Bank's largest clients and their family enterprises, and expand its suite of family office market services. The practice will bring together the experience of more than 150 professionals, including 40 formerly practicing partner level estate and tax attorneys, offering guidance on estate planning, life insurance and strategic wealth transfer techniques, along with the Private Bank's Advice Lab, Global Investment Opportunities (GIO) and Outsourced Chief Investment Officer (OCIO) teams.In addition, in May 2023, Eton Solutions launched administrative family office offering. The new offering is open to families with at least $25 million of assets. The new AFO offering merges AtlasFive technology with professional services. Clients retain freedom to select investment advisors and strategies, while AFO makes possible services such as bill pay, tax preparation data, accounting and document management. Existing family offices can also upgrade their technology with the system.The offering also helps cut the costs that would otherwise be involved in building a single family office. Therefore, such strategies adopted by key players are expected to propel the growth of family office industry.

Rising wealth and wealth management complexities is the main significant factor driving the growth of family office market. Challenges to comply with regulatory requirements, cost complexities and talent management to hamper the family office. Growing drive for creation of wealth, succession planning and customized solutions to provide significant opportunity for family office market growth.

COVID Impact

The pandemic's unpredictability has brought to light the significance of careful financial preparation and risk management techniques. The need for portfolio diversification, liquidity management, and emergency preparedness services has grown among family offices as a means of protecting capital from market and economic turbulence. In addition, the advent of remote work and the quickening pace of digital transformation projects have changed the way family office functions. In order to sustain operations and provide clients with good service in the face of travel limitations and social distancing measures, many have embraced digital collaboration platforms, virtual communication tools, and innovative technological solutions.

Key Takeaways

• Based on type, the single-family office segment held the largest market share in family office market analysis in 2022
• Based on application, the legacy and planning management segment held the largest share in family office market trends in 2022.
• Based on region, the North America segment held the largest market share within the family office market share in 2022.

Competition Analysis

Competitive analysis and profiles of the major players in the family office market size include Walton Enterprises LLC, Cascade Investment LLC, Bezos Expeditions, Mousse Partners, Ballmer Group, Citi Private Bank, Atlantic Trust, Pictet, BNY Melon Wealth Management, Stonehage Family & Fleming Partners, Abbot Downing, UBS Global Family Office Group, Bessemer Trust, Wilmington Trust, U.S Trust Family Office, Northern Trust, Hawthorn, Glemede Trust Company, Rockfeller Capital Management, BMO Harris Bank, and HSBC Private Bank. These players have adopted various strategies to increase their market penetration and strengthen their position in the family office industry.