A family office serves as an alternative to traditional wealth management options, providing specialized services for ultra-high net worth individuals. These private wealth advisory firms cater to the management and preservation of family wealth. With a single-family office, the investment management of the family’s accumulated wealth is handled by a privately held company.
The key value proposition of family offices lies in their ability to effectively structure and manage wealth while offering professional advice to meet the long-term goals of the family. According to the Economist, the number of single-family offices has grown significantly since 2008, reaching approximately 10,000 worldwide. These offices collectively manage an estimated $5.9 trillion in assets.
In addition to investment activities, family offices are actively involved in succession planning and preparing the next generation. They serve as ideal vehicles for families seeking to preserve their wealth for future generations. As more families recognize the benefits of utilizing professionals to manage, enhance, and protect their personal and business affairs, the adoption of alternative structures, particularly in the Middle East, has gained momentum.