Global Family Office Report 2022
Overview
Our annual Global Family Office Report is the most comprehensive study of single family offices worldwide. In its latest edition the report focuses on 221 of the world’s largest single family offices and covers a total net worth of USD 493 billion, with the individual families’ net worth averaging USD 2.2 billion.
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Executive summary
Key findings
Key findings
- With inflation high, central bank liquidity flagging and interest rates rising, family offices are reviewing their strategic asset allocation. They’re reducing fixed income allocations and sacrificing liquidity for returns, as they increase investments in private equity, real estate and private debt.
- Topping their list of concerns are high and possibly persistent inflation, alongside unstable global geopolitics – all at a time when the valuations of many financial assets remain elevated.
- Against this backdrop, most believe uncorrelated returns will be harder to find. As they explore new possibilities, they’re looking for alternative diversifiers including active strategies, alongside illiquid assets and derivatives.
Key findings
Key findings
- Private equity’s potential for higher returns and its broad opportunity set are proving more and more popular. Eight out of 10 family offices now invest in the asset class, as the number rises steadily year after year.
- Typically, family offices invest across both direct investments and funds. While the former are often an extension of the beneficial owner’s business activities, the latter effectively diversify risk across managers, strategies and vintages.
- In the age of the Fourth Industrial Revolution, the technology sector is naturally the most common investment destination.
Key findings
Key findings
- Just over half of family offices made sustainable investments in 2021: as allocations stabilize they’re refining their purpose and the objectives they want to reflect.
- Due diligence is intensifying as they seek to avoid greenwashing, measure impact and define their approach.
- Exclusions remain the most common tool, continuing to surpass environmental, social and governance (ESG) approaches such as integration and stewardship, that are growing more popular with other types of institutional investors.
Key findings
Key findings
- Many family offices are investing in distributed ledger technology and cryptocurrencies to learn about decentralized payments, rather than purely for financial reasons.
- There are geographical differences – for instance, US family offices are more likely to invest than those in Asia-Pacific.
- Family offices view lack of regulation as the biggest obstacle to investing.
Key findings
Key findings
- Typically, family offices focus on where they can add most value – strategic asset allocation and risk management – as well as the key control function of financial accounting & reporting.
- As they compete for qualified staff in these areas, family office costs are expected to rise in the next three years, lifted by salaries and bonuses.
- IT costs are also expected to rise, as spending increases on software, platforms and cybersecurity.
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