Family offices set to grow in wealth market - report
Family offices in the US account for a fifth of the country's total $2.4 trillion held by registered investment advisors - and the number is growing, according to a new survey.
In the US there are up to 1,000 single family offices and 3,000 multi-family offices, according to a new survey from Celent, a financial advisory firm in the US.
The report said SFOs' assets under advisement are approximately $300bn, with the MFOs guiding or managing an additional $750bn.
Celent expects the number of wealthy families seeking the benefits and full suite of services of MFOs to increase. But the report said it expects competition to increase in this space as non-traditional providers such as wirehouses, trust companies, private banks, and other registered investment advisors seek to jump on the bandwagon.
"While investment management may be the main focus, it is not the only reason for the family office," said Robert Ellis , senior vice president of Celent's Wealth Management group.
He added: "Family offices stay relevant by instilling the family with a sense of pride and mission - from the first founder through multiple generations. The causes the family adopts and espouses, the political positions the family takes, and the arts and sciences the family supports all become integrated with the family office."
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