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Asset Management / Wealth Management
Family offices shift priorities as NextGen takes over
New business leaders show growing interest in digital assets and private markets
Tom King 2 Oct 2024

Family offices are undergoing a significant shift as the next generation of high-net-worth individuals (HNWIs) and family business leaders takes a more active role in investment decisions, according to new research.

A study by Ocorian, a global provider of services to HNWIs and family offices, finds that 93% of family office professionals report differences in the approach of the next generation who will take over the business started by their parents, with a third (34%) seeing substantial changes compared to their predecessors.

Notably, 82% say younger family members are increasingly involved in developing and reviewing investment strategies, and 35% report a marked increase in their influence.

Key shifts in investment focus include a growing interest in digital assets, with 66% identifying this as a point of difference, and nearly half (46%) noting increased attention to private markets.

The trend of investing in companies tied to family expertise is also gaining traction, with 82% expecting this approach to grow. Despite these changes, 94% of respondents believe there is a natural succession in wealth and leadership, although 99% agree more effort is needed in succession planning.

Michael Harman, commercial director at Ocorian, says generational differences in family offices are expected but must be incorporated into succession planning.

“It is clear from the study that most family office professionals believe there is an acceptance that succession planning is crucial and also that most have taken action to ensure the longevity of the family office,” Harman adds.

The research involved over 300 family office professionals, representing US$155 billion of assets under management, and included insights from Hong Kong and Singapore-based professionals.