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.