An Overview of 2025 Family Office Trends
The global increase in family wealth has spurred the rapid growth of the family office industry, a trend expected to persist. According to Deloitte, there are currently around 8,030 single-family offices worldwide. This number is projected to grow to 9,030 by 2025 and 10,720 by 2030. Key factors driving the popularity of family offices include successful generational wealth transfers and the increasing concentration of wealth.
This article will delve into the increasing number of family offices, highlight key trends to watch in 2025 and demonstrate how our tailored family office solutions can cater to your specific needs.
Family Office projected numbers
In addition, the notable increase in the number of family offices and the rapid expansion in family wealth are expected to significantly impact the estimated total AUM of family offices. Currently, family offices hold an AUM of US$3.1 trillion, a figure projected to increase by 73 per cent to US$5.4 trillion by 2030.
What are the 2025 Family Office trends?
There are several emerging trends that are anticipated to influence the shifting landscape of family offices in 2025:
- Global Expansion
Family offices are increasingly extending their global influence, particularly in regions such as the Middle East and Asia-Pacific (APAC). This trend is primarily driven by the rise in family wealth and the burgeoning demand for diversified investment opportunities.
- ESG-focused Investments
Environmental, Social and Governance (ESG) factors are becoming increasingly important in family office operations. They prioritise sustainable investing, focusing on opportunities that deliver financial returns and generate positive societal impacts.
- Thematic Investing
Thematic investing, where family offices focus on specific themes or sectors like technology, healthcare and sustainability, is becoming increasingly popular. This strategy facilitates targeted growth and ensures that investments are aligned with personal values and interests.
- Technological Integration
The integration of advanced technologies such as blockchain, artificial intelligence and data analytics is transforming the operations of family offices. These digital solutions enhance decision-making, increase transparency, boost operational efficiency and improve risk management.
- Customised Governance Structures
Family offices are tailoring their governance structures to facilitate smooth wealth transfers across generations. This includes offering educational programs on financial literacy, responsible investing and entrepreneurship.
- Hybrid Investment Models
Hybrid investment models combine traditional asset classes with alternative investments such as venture capital, private equity, real estate and private credit. This diversification to private markets benefits family offices by helping manage risk/volatility and enhancing returns.
In addition, Cees Jan Quirijns, Global Head of Private Client and Family Office at Bolder Group, highlights the numerous challenges family offices must tackle to modernise their governance structures for effective wealth management. These challenges include external factors such as advancements in technology (cybersecurity and data protection), geopolitical unrest, market and investment fluctuations (interest rates, inflation, and a growing focus on private markets) and compliance with regulatory requirements. Internally, family offices face issues like succession planning, next-generation engagement, professionalisation, retention of skilled staff and the integration of advanced technologies (systems, AI, and data management).
“To be able to manage these challenges properly, family offices will look at creating digital/virtual family offices with a strong in-house governance model whereby top management will be engaged in-house, and many of the talent needed to manage specific challenges will be hired externally. Thus, creating a well-managed professional family office based on an outsourcing model with a focus on engaging best-in-class talent externally to support the family office with specific tasks and goals,” he adds.
Quirijns also mentions that the digitalisation of investments, including blockchain-driven tools to gain direct access to private markets and the use of artificial intelligence in asset allocation and selection, review and reporting processes are some of the innovations in wealth management and financial planning that will be most impactful for family offices by 2025.
In conclusion, family offices are increasingly gaining traction as their numbers and global significance continue to rise. These trends demonstrate the dynamic and flexible nature of family offices in responding to changing customer demands and market conditions. Moreover, the family office structure remains an attractive option for wealthy families seeking to grow their wealth and protect their assets for future generations.
Bolder as your Family Office service provider
At Bolder, we offer personalized private wealth solutions tailored to your unique needs. We advise individuals, families, and family offices on complex matters such as governance, private equity structuring, and succession planning. Additionally, we assist with wealth structuring and planning, capital raises, and trust services. Our multi-family services provide comprehensive administrative support to global families.
If you’re looking to protect and preserve your wealth, get in touch with our team today to learn more about our family office solutions!
Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.
Bolder Group refers to the global network of independent subsidiaries of Bolder Group Holding BV. Bolder Group Holding BV provides no client services. Such services are provided solely by the independent companies within the Bolder Group which are each legally distinct and separate entities and have no authority (actual, apparent, implied or otherwise) to obligate or bind Bolder Group Holding BV in any manner whatsoever. The operations of the Bolder Group are conducted independently and have no affiliation with third party financial, tax or legal advisory firms or corporations.