Not surprisingly, privacy breaches are often the reason for significant reputation damage to wealthy families. Privacy: We live in an increasingly digital world where information is shared and spread faster than ever before. Achieving a positive and specific impact requires the right expertise and an active investment strategy that extends beyond traditional investment products. Purpose: In line with a broader global trend towards environmental and social consciousness, families are increasingly focused on achieving a lasting legacy, built around an overarching and unique purpose. In this digitised environment, cybercrime has flourished and social media has become a reputation minefield. The new era of technological advancement has also been a major disruptive force, wealth being created and lost faster than ever before. Low-interest rates, volatile financial markets and unstable geo-political conditions all contribute to the need for sophisticated risk management processes. Risk: New risks have emerged in the modern world of business, making generational wealth preservation an increasingly challenging task. Over time, families also become more complex and multi-layered and, with new generations entering the mix, succession and wealth transfer challenges have emerged. Investment strategies have to be more flexible and informed, keeping pace with accelerating change and shifting market dynamics. But there are other factors at play which have fuelled the family office trend:Ĭomplexity: The business landscape has become far more complex in recent times, especially in the regulatory, tax and wealth management space. Much of this new wealth can be attributed to the wave of new technologies and digital innovations. This trend correlates with a surge in new wealth creation in both traditional wealth hubs and emerging markets over the past two decades. The new millennium has given rise to a sharp growth of the single family office sector, with most family offices having been established post-2000.
#Family office finance drivers#
The key drivers of single family office growth They also play a significant role in the community and society as a whole as they increasingly focus on their legacy and social impact.
These entities are actively engaged in business and are linked to many of the biggest recent private equity deals. Single family offices may not be as well known, or understood, as large companies or brands may be, but they are becoming a commercial force to be reckoned with. In the past couple decades, there has been a significant increase in the number of SFOs across the globe, recent estimates suggesting that global family office assets under management have surpassed the one trillion Dollar mark. The single family office concept has been around for a long time, first emerging during the Industrial Revolution. A single family office (SFO) is a private, stand-alone business entity, created to exclusively manage the financial and personal needs of a single wealthy family. The financial capital managed by the single-family office is the family’s own wealth.
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