Although the term ‘family office’ was coined in the United States, the notion of generic offices or gatekeepers dates back to Europe. According to an EY guide, European family offices originated in the sixth century, ‘when a king’s steward was responsible for managing royal wealth.’ After that, the rest of the aristocracy adopted the practice, creating the concept of stewardship, or what we call governance today.
For our latest exploration and ranking of Europe’s largest family offices, see here.
Beyond aristocracy, during the Renaissance era, wealthy families formed private offices to manage their finances and patronise the arts. The most notable is the House of Medici, established in the 15th century. The Medici family were of Italian descent. They went from being successful wool merchants to a banking and political dynasty renowned all around Europe then.
European family office landscape
Investment opportunities
Europe offers a broad and robust investment landscape. It promotes access to diverse investment opportunities, including private equity, venture capital, and sustainable investments. The United Kingdom is home to Europe’s fastest-growing tech hub. Zuckerberg’s family office, Iconiq, recently opened an office in London. The firm is positioning itself to capture VC deals for growth-stage tech start-ups in the region.
Ease of doing business
Most European countries have well-established regulatory frameworks that make conducting business easy for family offices. The continent also has a high number of talented and skilled professionals and is home to some of the best financial institutions in the world. In 2022, PWC listed five European countries in a global location guide for the best places for family offices. It included Germany, Luxembourg, the UK, Austria and The Netherlands.
Stable economy
Despite the Russian-Ukraine war, most European countries still demonstrate economic stability. Six of the top 10 countries for the 2022 World Competitive Index were European. Denmark topped the economic competitiveness ranking because of its environmental sustainability. Other high-ranking countries include Switzerland, Sweden, the Netherlands, Finland, and Norway.
Current family office trends in Europe
The war in Ukraine nearly brought Europe to its knees in 2022. Committed to the Paris Agreement, the continent struggled with high inflation brought on by increasing prices of fuel and food costs.
However, not strangers to war or trying circumstances, family offices in the region are adapting to deal with the challenging economic circumstances. Despite the uncertain circumstances, Europe is home to 23% of the billionaires listed in the Forbes World Billionaires List 2022. Furthermore, the number of billionaires has climbed by 80% since 2016. That indicates plenty of wealth creation despite the region’s economic challenges.
A Campden Wealth report released earlier this year shows that European family offices are adopting new strategies to preserve their wealth and legacy. A majority (68%) cited that risk management was their top priority for the next 12-24 months. As a result of setbacks experienced in financial markets earlier in the year, firms opted for more exposure to private equity investments. Furthermore, popular strategies for mitigating the adverse impact of inflation on investment performance included increasing exposure to equities (49%), real estate (33%), commodities (33%) and reducing the duration of bond portfolios (28%)
In conclusion, while the term ‘family office; may have originated in the United States, the concept of private offices or gatekeepers can be traced back to Europe. European family offices have a long history, with roots in aristocratic stewardship and Renaissance-era wealth management. The European family office landscape remains ripe with investment opportunities, ease of doing business, and a stable economy.
Despite economic challenges, such as the Russian-Ukraine war and inflationary pressures, Europe continues to be home to a significant number of billionaires, indicating ongoing wealth creation in the region. And European family offices European continue adapting and evolving to preserve their wealth and legacy.
The largest family offices in Europe
Financière Agache
The Financière Agache SA is the family enterprise of Bernard Arnault. Its head office is in Paris, France. It manages over $144 billion in assets belonging to the Arnault family. Bernard Arnault is the founder, chairman, and chief executive officer of LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury goods company.
Téthys
Téthys is the holding company of the Bettencourt-Meyers family in France. The Bettencourt family is the single largest shareholder of L’Oréal. Téthys is chaired by Françoise Bettencourt Meyers, with Jean-Pierre Meyers being its CEO. The family is estimated to be worth around US$87.4 billion.
Fedesa
Fedesa SAM is the single-family office of Giovanni Ferrero, the heir of the famous Italian Ferrero empire. The firm was established in 2016 and has headquarters in Monaco. It manages nearly $55 billion in assets belonging to the Ferrero family.
Pontegadea Inversiones
Pontegadea Inversiones is the single-family office of Amancio Ortega, the founder of Zara and one of the wealthiest persons in Europe, with a consolidated net worth of $53.8 billion. The firm was founded in 2001 and is headquartered in La Coruna, Spain and invests primarily in private equity and real estate.
Artémis
Artémis is the investment company of the Pinault family. Founded in 1992 by François Pinault, it carries out long-term investments in companies with growth potential. Over the past 30 years, Artémis has built a substantial and balanced portfolio of luxury goods and services assets. It manages assets valued at some $43 billion.
Athos KG
Established in 2006, Athos is a Holzkirchen-based family office. It is the single-family office of Thomas und Andreas Strüngmann and manages over $30 billion in assets. It is mainly active in the European private equity market and holds a controlling stake in BioNTech.
Delfin
Delfin is the holding company of Leonardo Del Vecchio’s family wealth in Italy. Del Vecchio was the founder and chairman of Luxottica, the world’s largest producer and retailer of glasses and frames. The company manages over $29 billion in assets.
The Grosvenor Estate
The Grosvenor Estate is the single family office of the Grosvenor family, which the Duke of Westminster heads. It is headquartered in Chester, United Kingdom, managing over $25 billion in assets. The firm primarily invests in the agriculture, food, and rural estates markets.
KIRKBI
KIRKBI is the family office of Kirk Kristiansen, the Danish family that founded Lego. The family office is a private holding and investment company which is focused on building a sustainable future for the family ownership of the LEGO brand for its future generations. This single-family office manages around $21 billion in assets.
Carl Bennet AB
Carl Bennet AB is the single-family office for the Bennet family, which includes Carl Bennet, a Swedish billionaire, chairman of the medical technology company Getinge and the printing company Elanders, his wife, and his child. The firm was founded in 1989 and is headquartered in Gothenburg, Sweden. It manages over $16.4 billion in assets and is mainly active in the healthcare, medical technology, dental care, engineering and logistics industries.
HQ Trust
HQ Trust is the multi-family office of the Harald Quandt family. Its located in Berlin, Germany, and provides services to high and ultra-high-net-worth individuals and institutional investors. The Quandt family is worth around $17 billion.
Canica
Canica is the family office of Stein Erik Hagen’s family. Hagen is the Board’s Chairman and a major Orkla conglomerate shareholder. Canica invests in industrial, financial, and real estate investments and manages around $3 billion in assets.