Search Ocorian

Next gen ‘taking a bigger role in investment strategy at family offices’

Next gen ‘taking a bigger role in investment strategy at family offices’

15 May, 2023
Private Clients Family Office

Younger family members are increasingly taking a bigger role in driving the investment strategy of family offices, new global research* from Ocorian, the specialist global provider of services to high net worth individuals and family offices, financial institutions, asset managers, corporates, shows.

Ocorian’s international study with more than 130 family office professionals responsible for around $62.425 billion assets under management found 87% report more involvement from the next generation in developing and reviewing the investment strategy of their family office.

More than a third (35%) of those questioned say the next generation is becoming much more involved. Just 1% say younger family members are becoming less involved in the family office’s investment strategy.

ESG and ensuring the long-term future of the family office is top of their agenda when reviewing investment strategy, the research from Ocorian, which works with more than 60 family offices around the world. 

Younger family members want a bigger focus on ESG and the long-term future of the office, research shows

Around 85% of those questioned say younger family members focus on the long-term sustainability of the family office when they become involved in investment strategy while 84% want to focus more on ESG considerations of the strategy.

Private markets and digital assets are increasingly important for younger generations

However, the research for Ocorian, which provides services to HNW individuals and family offices as well as financial institutions, corporates and asset managers, found increasing interest in private markets investment and digital assets. Around 78% said younger family members want the investment strategy to include private markets and 74% want it to look at digital assets.

Younger family members have a bigger risk appetite than the founders or older generations. Around 70% questioned report a bigger risk appetite from the next generation while 61% say younger family members want a bigger focus on philanthropy. 

The research also found family offices are increasingly looking to invest in private companies with which the family already has an interest, or background. Around 34% expect that to increase dramatically over the next two years while 61% believe the trend will increase slightly.

Lynda O’Mahoney, Global Head of Business Development – Private Client at Ocorian, said: “The influence of the next generation is being increasingly felt in family offices worldwide and they are bringing a different perspective to the investment strategies deployed.

“There is growing interest in ESG as well as private markets and digital assets but overwhelmingly younger family members want to ensure the long-term growth of the office. That underlines the growth in the family office sector is growing strongly as more family offices are established and increasingly more family members want to play an active role in managing their assets in the most efficient way.”

“This is global research, and we realise the roles and the involvement of the next generation can differ depending on where the family is based. With our global team, these are cultural differences we’re sensitive to and can work effectively to deliver against.”

Ocorian’s award-winning dedicated family office team provides a seamless and holistic approach to the challenges and opportunities families face. Its service is built on long-term personal relationships that are founded on a deep understanding of what matters to family office clients. Its global presence means Ocorian can provide bespoke structures and services for international families no matter where they live.

* Ocorian commissioned independent research company PureProfile to interview 134 family office investment managers working for family offices which use third-party private client services providers to support in the preservation and protection of their clients’ wealth. The investment managers interviewed are responsible for assets under management of $62.45 billion and include 63 working for multi-family offices. The global study interviewed family offices in the US, UK, Canada, China, Germany, India, Norway, Saudi Arabia, Singapore, South Africa, Sweden Switzerland, UAE, Denmark, France and Japan