Ultra-high-net-worth families have always preferred family offices over other wealth management options like investment banks, private wealth advisors, etc. for two primary reasons – greater control and privacy at the expense of higher establishment and operational costs. However, the number of family offices worldwide has grown by leaps and bounds since they started gaining traction in the early 1980s. The increasing competition in the industry, especially amongst commercial, or more public, multi-family offices, has led to a gradual shift in operational priorities away from absolute privacy. This article explores the potential drivers behind this trend and how family offices can exert a well-balanced marketing strategy to attract more clients in an increasingly competitive market.
The Shift Away From Privacy
The surge in the growth of family offices is primarily attributed to the explosion in the creation of global wealth across the world. The 2022 Global Wealth Report by Credit Suisse estimated that the total number of UHNW families globally stood at 264,200 at the end of 2021 – a 4.7x increase since 2009. The shift away from privacy for family offices can, therefore, be explained from two perspectives:
