Up to now, family offices have tended to differentiate themselves from institutional investors through their agility, discretion and highly personalised approach to wealth management.
But as global wealth expands, investment opportunities become more sophisticated, demographics become more complex and the next-generation takes on leadership roles, the family office sector is undergoing a significant transformation.
Perhaps the most visible aspect of this transformation is associated with the convergence of the private wealth sector with alternative assets, which is accelerating an ‘institutionalisation’ of the sector.
As a result of their growing interest in alternatives, families are adopting the type of governance structures, operating models and specialist capabilities once associated primarily with institutions - pension funds, sovereign wealth funds and large asset managers.
