In recent years, there has been a significant surge in the number of family offices worldwide, tripling since 2019 and triggering intensified competition among private equity firms, hedge funds, and venture capital entities to secure their investments. A new report from Precoin reveals that the global tally of family offices, the investment arms of affluent families, surpassed 4,500 last year, with North America leading the pack with 1,682 offices.
This proliferation of family offices is accompanied by a substantial increase in their collective assets under management, now estimated to exceed USD6 trillion. The upward trajectory is fueled by a growing population of billionaires worldwide, with over 2,600 individuals falling into this category, virtually all of whom necessitate the services of a family office. Additionally, the number of individuals with fortunes exceeding USD100 million, the typical threshold for engaging a family office, has surged to over 90,000, according to WealthX.
The burgeoning prominence of family offices has not gone unnoticed by investment firms seeking to tap into this lucrative market. Industry heavyweights such as Carlyle, KKR, and Blackstone have ramped up their efforts, expanding teams, crafting specialized products, and tailoring strategies to cater to the unique needs of family offices. Private equity firms, in particular, are aggressively vying for a slice of the family office pie, recognizing the strategic value of cultivating relationships with high-net-worth individuals and their investment vehicles.
According to Rachel Dabora, a research analyst at Preqin, private equity giants are strategically positioning themselves to capture opportunities within the family office segment, leveraging their expertise and resources to court affluent investors. The heightened focus on this market underscores the growing significance of family offices as influential players in the global investment landscape, prompting investment firms to adapt and innovate to remain competitive in this dynamic environment.
Press Release from Carey Olsen, Thursday 15 February, 2024. Carey Olsen’s investment funds team in Jersey has advised independent private equity manager Epiris on the launch and final close
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