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Tat Capital
Jan 12 2018

Global Family Offices: A quick rundown of the most recent developments.

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Global Family Offices: A quick rundown of the most recent developments.
<p>The&nbsp;<strong>FO market</strong> has hit an<strong> international boom</strong> recently, and here are how the different countries stand:</p> <h3>&nbsp;</h3> <h3><strong><em>Australia</em></strong></h3> <ul> <li>The annual family office Congress saw&nbsp;350 individuals attending in 2017</li> <li>An organized &ldquo;Private Wealth Network&quot;&nbsp; consisting of more than 600 individuals&nbsp;from 180 families (inclusive of New Zealand)</li> <li>In Australia as a whole, the estimate of SFOs is around 500 to 750, and&nbsp;rising</li> </ul> <h3>&nbsp;</h3> <h3><strong><em>Canada</em></strong></h3> <p>Expected FO growth in Canada&nbsp;due to:</p> <ul> <li>Sale of businesses and the inheritance of large wealth</li> <li>Recent trend of wealthy individuals moving to Canada</li> </ul> <h3>&nbsp;</h3> <h3><strong><em>China</em></strong></h3> <ul> <li>Currently wide interest in setting up family offices.</li> <li>A special program on family offices at the Hong Kong University of Science and Technology in October 2017 quickly sold out.</li> </ul> <h3>&nbsp;</h3> <h3><strong><em>Hong Kong</em></strong></h3> <ul> <li> <p>Estimated 50 traditional SFOs based in Hong Kong. [Hesitancy to keep assets in a jurisdiction that&rsquo;s &ldquo;very close&rdquo; to mainland China, with political uncertainty, as always, is a major factor for the lower presence.&nbsp;</p> </li> </ul> <h3>&nbsp;</h3> <h3><strong><em>India</em></strong></h3> <ul> <li>Since 2013, Family Offices Summit in India sees over 400 attendees.</li> <li>Massive surge in interest among high net-worth families to set up their own family offices over the last few years.</li> <li>According to a recent study, there are already 75+ Single Family Offices functioning in India, and this number is significantly growing every year</li> <li>According to<a href="https://www.cnbc.com/2017/06/27/heres-how-indias-wealthiest-families-are-seeking-to-stay-wealthy.html">&nbsp;a recent CNBC report</a>, as of 2017, an estimated 20 percent of the private wealth in India was managed by family offices.</li> </ul> <h3>&nbsp;</h3> <h3><strong><em>Israel</em></strong></h3> <ul> <li>A&nbsp;fairly new concept that is witnessing eager adoption</li> <li>In 2017, there were an estimated 50 to 75 SFOs in the country.</li> </ul> <h3>&nbsp;</h3> <h3><strong><em>Russia</em></strong></h3> <ul> <li>With private wealth being a fairly recent phenomenon, most of the wealth creators are young and more focused on continuing to create wealth, not on wealth management for future generations.</li> </ul> <h3>&nbsp;</h3> <h3><strong><em>Singapore</em></strong></h3> <ul> <li>Current estimates put the number of SFOs in Singapore at a mere 18, according to Professor Winnie Qian PENG of the Hong Kong University of Science and Technology.</li> </ul> <h3>&nbsp;</h3> <h3><strong><em>Switzerland</em></strong></h3> <ul> <li>Despite US disclosure agreement, the fact that numerous banks are reporting continued net new money inflows reflects that the Swiss banking and wealth management industry has successfully implemented its&nbsp;<a href="https://www.lexology.com/library/detail.aspx?g=30ede261-abe7-4b37-abe4-f34cb9589bc6">White Money Strategy</a>,&nbsp;and is stronger than ever before.</li> <li>However the question of how the older FOs will operate&nbsp;still looms in the industry. Will they close, become a multi-family office, or combine with a larger office&nbsp;for&nbsp;administrative and reporting services.</li> </ul> <h3>&nbsp;</h3> <h3><strong><em>United States</em></strong></h3> <ul> <li> <h3>Continues to be the leader in the family office industry, with estimates indicating as many as 5,000 SFOs in the United States.</h3> </li> </ul> <p>&nbsp;</p> <p>Read more @&nbsp;<a href="http://www.wealthmanagement.com/high-net-worth/quick-tour-family-offices-around-world" target="_blank">WealthManagement.com</a></p> <p>&nbsp;</p>

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