Deloitte Private’s latest report in its Family Office Insights Series - Global Edition explores the rapid expansion of family offices and offers a vision of the future landscape

New York, NY, USA 04 September 2024—The release of Deloitte Private’s second report in its Family Office Insights Series - Global Edition, Defining the Family Office landscape, outlines the world of family offices—what they are, how they’re growing, their future outlook and more. As family offices continue rapid global expansion, Deloitte Private’s research reveals that these organisations expect increased wealth creation and enhanced influence in the investment community.

“This latest edition of Deloitte Private’s Family Office Insight Series highlights the unique points of view of family offices, shining a light on where they are today and their prospects for the future,” says Wolfe Tone, Deloitte Private Global leader, Deloitte Global. “Globally, family offices are expanding quickly by focusing on their growing presence throughout different areas of the world, asset base, industry impact and what makes a family office successful. As they continue to navigate ongoing economic challenges and geopolitical uncertainty, family offices are expanding their services, maturing their structures, focusing on their talent strategies and carefully managing their investments to ensure sophisticated and efficient operations for the future.”

Family office expansion flourishes around the globe
 

The family office arena has been growing quickly, reflecting the rise in family wealth globally—and this growth is expected to continue in the coming years. Family offices’ surge in popularity is driven by a combination of factors, including increased wealth concentration, successful transfers of generational wealth, robust Private Equity and Mergers & Acquisitions markets and the pursuit of more customised investment strategies and services.

There are an estimated 8,030 single family offices in the world today —a 31% increase from 6,130 in 2019. This number is projected to grow to 9,030 family offices by 2025 (a 13% increase) and 10,720 family offices by 2030, marking a potential 75% rise in just over ten years.  

By region, there are 3,180 family offices in North America today, 2,020 in Europe, 2,290 in Asia Pacific, 290 in the Middle East, 190 in South America and 60 in Africa. The North America region is expected to undergo the greatest growth, with its number of family offices expected to nearly double from 2,210 in 2019 to 4,190 in 2030 - a 90% increase. 
However, Asia Pacific is gaining considerable steam and has surpassed Europe in terms of its number of family offices (2,290 versus 2,020 for Europe). It is expected to outpace North America in terms of its speed of growth between now and 2030.

Estimated number of family offices worldwide
 

2019 

• Global: 6,130
• North America: 2,210
• Europe: 1,680
• Asia Pacific: 1,790
• Middle East: 250
• South America: 150
• Africa: 50

2024

• Global: 8,030
• North America: 3,180
• Europe: 2,020
• Asia Pacific: 2,290
• Middle East: 290
• South America: 190
• Africa: 60

2025 (projected)

• Global: 9,030
• North America: 3,550
• Europe: 2,290
• Asia Pacific: 2,600
• Middle East: 310
• South America: 210
• Africa: 70

2030 (projected)

• Global: 10,720
• North America: 4,190
• Europe: 2,650
• Asia Pacific: 3,200
• Middle East: 350
• South America: 240
• Africa: 90

The rapid rise in the number of family offices, with the tremendous growth in family wealth, is also expected to affect family offices’ total estimated AUM significantly. Today, family offices hold US$3.1 trillion in AUM. This number is expected to increase by 73% to US$5.4 trillion in 2030

Family offices are branching out, with North America and Asia Pacific topping the destination list
 

In line with the rapid expansion in the family office arena, over a quarter (28%) of family offices now have more than one branch. One-in-10 (12%) plan to establish another branch, with North America and Asia Pacific currently proving to be the most attractive destinations—with 34% of family offices targeting each of these regions (compared to 24% for Europe). 

Family wealth is expected to grow by 189% between 2019 and 2030
 

A notable 68% of all family offices have been established after the millennium. Spurring this global growth is a meteoric rise in family wealth. In 2019, the total estimated wealth for families with family offices was US$3.3 trillion. Today, it is US$5.5 trillion, reflecting a 67% increase since 2019, with expectations for it to rise to US$9.5 trillion by 2030. This constitutes an expected 189% rise in family wealth between 2019 and 2030. This influx of new money is changing the face of wealth, with most family offices now serving first (41%), second (30%) and third (19%) generation families.

“Off the back of gains in their operating businesses and wider investments, the world’s most affluent families have been accumulating wealth at a meteoric pace - and we expect this trend to continue,” says Dr Rebecca Gooch, Deloitte Private Global Head of Insights, Deloitte Global. “With an expectation that family wealth will nearly triple between 2019 and 2030, this is spurring demand for private wealth management structures, leading to a rapid rise in the size and sophistication of the family office arena.” 

Women are increasingly leading family offices worldwide
 

While the gender gap is still prevalent, women are increasingly earning their own fortunes and taking on greater Leadership roles within the family enterprise. This is helping to bolster the family office arena, as women now serve as the principals for 15% of family offices worldwide. 

Analysing these figures by region, women serve as the principals for 21% of the family offices in Africa, 20% in Europe, 18% in Asia Pacific (with 16% for Asia and 22% for Oceania-based countries), 17% in South America, 12% in North America and 10% in the Middle East.

The findings also reveal that, on a like-for-like basis, women are more likely than men to utilise a family office for their wealth management. This is suggested by the fact that women constitute 10% of all individuals worldwide with US$100 million or more in wealth (with men constituting 90%). However, they represent a more notable 15% of all family office principals with US$100 million or more in wealth (with men reducing to 85%). 

The future of the family office landscape includes continued growth and greater sophistication
 

While it’s been established that the family office arena has and will continue to grow quickly, emerging trends are also reshaping the landscape. When respondents were asked what they believe the future will look like, the majority expect there to be an expansion in the number of family offices worldwide (73%), that family offices will become more institutionalised and professionally managed (66%) and that they will adopt greater asset class and geographic investment portfolio diversification (55%). 

To a lesser but still notable extent, they believe family offices, which are embedded in families’ operating businesses, will increasingly transition into independent structures (38%), that family offices will expand their service offerings (36%) and that there will be a widespread adoption of operations-based digital technology (33%) and sustainable investments/operations (32%).

“In looking ahead, many family offices are staying true to the traditions of past and current generations, while also evolving to meet the needs of future generations,” says Adrian Batty, Deloitte Private Global Family Enterprise leader, Deloitte Global. “As the wealth management sector matures, the enablement for firms to scale-up in sophistication and reach creates further opportunities for growth.”

To view the full results of Deloitte Private’s latest Family Office Insight Series - Global Edition Survey, Defining the Family Office landscape, visit: https://www.deloitte.com/global/en/services/deloitte-private/about/defining-the-family-office-landscape.html.

Methodology
 

Deloitte Global Survey 354 single family offices from around the world between September and December 2023. These family offices oversee an average asset under management (AUM) of US$2.0 billion, while the associated families have an average wealth of US$3.8 billion (total estimated AUM is US$708 billion and family wealth US$1.3 trillion). The report also conducted in-depth interviews with 40 senior family office executives, representing some of the most prominent families in the world. The report and interviews offer invaluable insights for family offices to navigate the landscape and plan for long-term success.