💰 Family offices to surpass hedge funds with $5+ Trillion in assets by 2030

[AJ Wong]

Your next real estate competition might not be Black Rock or Bezos...it could be coming from the family of the friends you grew up with. 

According to accounting firm Deloitte Private, the number of single-family offices, or in-house investment service firms of families with a net worth of $100M+ is expected to rise nearly 25% from 8,000 to 10,720 by 2030. Their total assets under management for is expected to top $5.4 Trillion in the next six years totaling more assets than hedge funds.

In total, the worldwide wealth of families with private offices is expected to exceed $9.5 trillion in the same time period. 

More than two-thirds of family offices have been created since 2000 with the majority founded by original wealth creators, 30% serve second generation and 19% serve a third generation. 

North America dominates the family office landscape with over 3100 office and is expected to grow to over 4100 by 2030, accounting for 40% of the global total. In the same period North American family office assets are expected to grow from $2.4 trillion to nearly $4 trillion.

 A BNY Mellon Wealth Management survey found the 6/10 office made at least six direct investment last year with 7/10 planning to make the same number of investments this coming year. 

The Deloitte survey revealed the average family office principal age at 68 and 4/10 will endure a succession process within the next ten years. 

Nearly one-quarter of family office have multiple 'branches' often to support the families in other countries. 

As the old adage goes...The rich get richer?

How do you engage with family offices, have you worked or represented any for real estate investment?