Family offices face a shift in priorities from the next generation
- Almost all family office professionals are seeing change in approach from the next generation with investing in digital assets and private markets key issues
- 82% say the next generation are becoming more involved in developing and reviewing investment strategies
Family offices are facing a change in investment priorities and approach as the next generation of the family become more involved, new global research* from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows.
It found almost all (93%) of family office professionals including those working for multi-family offices questioned say the next generation differ from the founding and preceding generations on how to run the family office with a third (34%) saying they differ significantly.
More than four out of five (82%) say the next generation is becoming more involved in developing and reviewing the family office’s investment strategy with 35% reporting much more involvement from the next generation, Ocorian’s international study among more than 300 family office professionals collectively responsible for around $155 billion assets under management found.
Key issues identified by the study include investing in digital assets which 66% reported as an area of difference while nearly half (46%) pointed to an increased focus on private markets from the next generation.
| Areas of difference for next generations in family offices | Percentage of family office professionals highlighting this area |
|---|---|
| Digital assets | 66% |
| Increased focus on private market | 46% |
| ESG/impact investing | 42% |
| Investment risk appetite | 34% |
| Geographical footprint | 31% |
| Asset allocation/investment strategy | 28% |
| Synthesising cultural priorities | 20% |
| Philanthropy | 19% |
| Ownership of physical assets such real estate or business aircraft | 12% |
The study found 82% of family office professionals expect an increase in the trend of family offices investing in companies that family members have an interest in or background in. It also found almost all (99%) questioned believe more needs to be done around succession planning.
But the research showed that almost all (94%) of family office professionals believe there is a natural succession of wealth and leadership in the family offices they work with. Just 2% said there was not and another 4% were unsure.
Michael Harman, Commercial Director, at Ocorian commented: “Differences in approach and priorities between different generations in family offices are natural and to be expected but do need to be recognised and included in succession planning. This highlights the importance of seeking professional support in the structuring and administration of the family office as it is clear there is not a one size fits all approach and Ocorian can truly add value navigating those differences.
“It is clear from the study that most family office professionals believe there is an acceptance that succession planning is crucial and also that most have taken action to ensure the longevity of the family office.”
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.
