State of the Family Wealth Industry Report Released

Multifamily Offices Ride Wave of Asset Growth While Single-Family Offices Move to Forefront

Chicago, Illinois, UNITED STATES


CHICAGO, Dec. 13, 2018 (GLOBE NEWSWIRE) -- The Family Wealth Alliance, a leading voice on trends and developments in the family wealth community, announced today key findings of its 2018 State of the Family Wealth Industry report.  The publication chronicles the continued growth in Multifamily offices, notes a trend of Single-Family office emergence on the public stage, and traces forces driving the continued evolution of the industry in North America.

Additional key findings include:

  • Multifamily office assets - and marketplace acceptance of their client-centric model – are both up sharply, increasing more than fifty percent to an estimated $1.2 trillion in the U.S. over the last five years.   Multifamily offices provide comprehensive financial and ancillary services to a set of unrelated client households.  Client assets usually range from $30 million to $300 million, with a mean firm size of approximately $6 billion.
     
  • The number of firms and volume of assets controlled by Single-Family offices are growing as well, with approximately $1.9 trillion in assets, a 40% increase over five years.  These offices serve a related set of multigenerational households originating from the same wealth-creator and have an average size of $600 million.
     
  • Hedge fund managers have brought attention to the industry with many converting to the Single-Family office structure in recent years.  Single-Family offices have also increased their participation in direct private equity deals, increasing their collective profile still further.  This important source of private capital is likely here to stay.
     
  • Concerns about long-term sustainability persist, with the challenge of transitioning leadership to the next generation affecting both families and firms. A shortage of talent further burdens all organizations in the industry.

"This new publication, which is our 25th Alliance Research report, chronicles the ecosystem of the family wealth industry. We are pleased to release it in our organization’s 15th anniversary year,” said Thomas R. Livergood, founder and chief executive of The Family Wealth Alliance. "Sustainability is clearly the issue of our day, one faced by families as well as the firms that serve them. In addition, our report addresses issues such as scalability, talent, technology, investment trends, longevity and the NextGen – all of which bear watching." 

The report is available for purchase at FamilyWealthAlliance.com.

About The Family Wealth Alliance

The Family Wealth Alliance convenes family wealth firms and organizations providing specialty services that, in turn, serve select private families across North America. The organization provides thought leadership under the Alliance Research name. For more information about thought leadership, membership and networking opportunities offered by The Alliance, please visit FamilyWealthAlliance.com.


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