Family offices, the private wealth management entities of ultra-high-net-worth (UHNW) families are increasingly becoming sophisticated and influential players within the global financial ecosystem. According to Deloitte Private, there were an estimated 8030 single-family offices globally in 2024, with projections suggesting growth to approximately 10,720 by 2030.
We have researched and reviewed what is to come in 2025, here we will outline the predictions, trends and outlooks shaping the family office sector in the coming year.
Further Professionalisation
The family office sector is expected to continue its trend towards professionalisation in 2025. Reports like the Global Family Office 2024 Survey Insights by Citi Private Bank notable advancements in areas such as:
- Investment functions: Over half of surveyed family offices have established investment committees and formalised investment policy statements (IPS).
- Governance: Over 70% of family offices have implemented performance review and reporting processes, and approximately two-thirds have separated their operations from family businesses for enhanced operational efficiency.
- Global Comparisons: The Citi report indicated that European, Middle Eastern, and African (MENA) family offices lead in governance practices. Only half of North American family offices have family councils or mission statements (quoted from North America Family Office Report 2024, RBC Wealth Management).
The PwC Global Family Office Deals Study 2024 further highlights the transformation of family offices from single entities to family investment funds, reflecting a shift toward sophisticated wealth management and investment practices. We are confident that in 2025, this trend towards further professionalisation within the family office space will continue to gain momentum.
Investment Trends
1) Positive Outlook on Impact Investing
According to the PwC study, impact investing is playing an increasingly important role in family offices’ deal flows, particularly in areas such as education, renewable energy, and microfinance. The report suggests a clear shift across the family office space towards impact investments.
2) Private Equity Continues to Dominate
Based on the reports, private equity appears to be the most favoured asset class among family offices. The Citi Private Bank report found that 47% of family offices expressed the most bullishness with respect to direct private equity, while 41% were optimistic about private equity via funds.
This strong sentiment is further supported by the RBC Report, which highlights the expectation that private equity and venture capital will continue to deliver strong long-term risk-adjusted returns. While it is important to remember that these are snapshots of current sentiment, and the investment landscape can change, private equity seems to be capturing the attention and confidence of many family offices.
3) Growing Interest in AI
The Citi Private Bank Survey noted that there is a growing recognition of the transformative potential of AI and a desire to capitalise on its growth, with 53% of family office having built portfolio exposure to Generative AI through various means.
4) Increased Allocation to Fixed Income
The Citi Private Bank survey highlighted that nearly half of respondents increased their allocation to fixed income, attracted by yields near multi-year highs. This reflects a desire for income generation and a potential hedge against market volatility.
5) Mixed Sentiment on Real Estate
While real estate remains a significant asset class, family offices are showing restraint due to concerns about oversupply and rising interest rates (RBC Report). However, in regions like the MENA, as noted in the HSBC The MENA Family Office Landscape Report 2024, real estate continues to dominate these portfolios, with over 80% of family offices maintaining direct investments in this sector, making it the leading asset class.
We believe that, despite the mixed sentiment, real estate will continue to hold appeal for family offices. Its potential for long-term capital appreciation, income generation, and its tangible nature remains attractive.
Family Offices Going Global
The global landscape is increasingly shaping the strategies and operations of family offices. Factors such as globalisation, family mobility, and the pursuit of diversification and growth opportunities are driving family offices to expand their international reach.
The Citi Private Bank’s Global Family Office 2024 Survey revealed that 71% of families exhibit international characteristics, with assets, family members, or both spread across multiple countries. This trend is particularly pronounced among later generations, with 84% of third-generation families demonstrating the international traits compared to 62% of first-generation families, reflecting the evolving dynamics of family wealth.
Key global hubs for family offices are emerging as part of this global expansion. While established financial centres like London and New York remain significant, emerging hubs like Dubai are gaining prominence. Offering access to global markets and favourable regulatory environments, Dubai hosts an estimated 30% of MENA Family Office investible assets, as noted in HSBS’s MENA Family Office Landscape Report.
The political and economic landscapes of different countries also impact family offices’ internationalisation. A UBS pre-election survey highlighted challenges faced by U.S.-based family offices in a post-Trump victory environment. While tax cuts might stimulate economic growth, they also pose market risks, and potential tariffs could exacerbate inflationary pressures, adding uncertainty to international investment strategies.
Growing Pressure on Succession Planning
Succession planning remains a critical yet often-overlooked challenge for many family offices. The RBC survey revealed a global gap in succession planning, with only 54% of family offices addressing this issue. This varies significantly across regions, with Asia Pacific exhibiting the highest rate at 65% and Europe lagging behind at 47%.
This gap demands urgent attention from Ultra-High-Net-Worth (UHNW) individuals and families, as leadership transitions loom. The Citi Private Bank report indicates that 40% of families will undergo significant leadership transitions within the next five years, with far-reaching impacts on both family offices and the broader family structure.
Looking Ahead
In 2025, family offices are set to experience continued growth and evolution. Professionalisation will remain a key focus, driving enhancements in governance structures and investment processes. Investment trends are likely to emphasise private equity, impact investing, and a more strategic approach to real estate.
Internationalisation will also gain momentum, driven by globalisation, family mobility, and the pursuit of diversified investment opportunities. While the global economic and political landscape presents both opportunities and challenges, family offices that embrace professionalisation, adapt to changing investment trends, and navigate global complexities are set to thrive.
By staying informed on emerging trends and seeking expert advice, Family Offices can effectively manage their wealth and secure their long-term financial future.
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