How Family Offices Affect the World of Wealth Management

A new report from Capgemini, World Wealth Report 2024, offers a broad overview of the high-net-worth-individual (HNWI) and ultra-HNWI landscape — and a look at how the growth of family offices may challenge traditional wealth management firms.

Wealth management firms may ultimately need to strike a balance between competing and collaborating with family offices to earn more business in the ultra-HNWI market, the report found. This is reflected in the title of this year’s report, “Intelligent strategies for winning with the ultra-wealthy: Bridge wealth management and family office strengths to fuel growth.”

A few of the report’s points about family offices, their strengths and their role:

  • Almost all UHNWIs — 93% — turn to family offices for value-added services.
  • Family offices’ strengths include nonfinancial services that are valued by UHNWIs, including concierge services, networking opportunities, legal consultation and lifestyle advice.
  • Family offices’ advantages in serving UHNWIs include experience with family dynamics, especially across generations; longstanding relationships with their clients, which enables them to align with their objectives and earn their loyalty; and a view of all the clients’ assets, including non-bankable ones.

About the Author

Margaret Steen

Margaret Steen is the editor of FO Pro, The Family Office Professional. Based in Silicon Valley, she has written for Family Business Magazine for more than 15 years.


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