Key Takeaways
- • Deloitte data cited at the PWM/FT Live Global Wealth Management Summit in London show 8,030 single-family offices worldwide in 2024 managing $3.1tn, with forecasts of 10,700 offices and $5.4tn by 2030.
- • Nicole Curti, president of the Alliance of Swiss Wealth Managers and CEO of Capital Y, said she had never seen a client move from a family office or independent wealth manager back to a bank in 30 years.
- • Doris Meister, chairman and CEO Emeritus of Wilmington Trust, said families with at least $500mn to $1bn are typically needed to justify hiring professional investment management in-house.
- • Deloitte reports 72 per cent of family offices are under- or only moderately invested in operational technology, a gap private banks currently exploit.
- • In Switzerland, family offices and independent firms manage around 20 per cent of private wealth across more than 1,800 fragmented entities, many lacking scale and formal governance.
Summary
Ultra-wealthy heirs and founders are shifting assets away from traditional private banks toward family offices, a trend discussed at the recent PWM/FT Live Global Wealth Management Summit in London as part of the largest generational wealth transfer in history. Speakers attributed the shift partly to declining trust in financial institutions and to banks' combination of wealth management with product sales, whereas family offices are viewed as offering tailored, conflict-free advice on a flat-fee basis.
Nicole Curti, president of the Alliance of Swiss Wealth Managers and CEO of Capital Y, argued that banks are not structured to address the holistic needs of wealthy families, including succession, education and governance. Rémi Douchet, co-founder and CIO of iVesta Family Office in Paris, said many clients are first-generation entrepreneurs in their 40s or 50s who want someone to act as chairman of their wealth. He said the number of multi-family offices in France has risen from about five a decade ago to around 100. Özge Doğan, founder of Istanbul-based Karman Beyond, said generational change is acting as a catalyst in Turkey, which is at an earlier stage.
Doris Meister of Wilmington Trust said that while banks offer broader products, they often do not manage the whole picture, and that the wealthiest families have set up their own offices. She noted that comprehensive in-house models require scale, with families of at least $500mn to $1bn typically needed to hire professional investment management.
Succession planning is presented as a central and urgent challenge as Baby Boomers age. Family offices often act as neutral intermediaries in these transitions, with Ms Doğan describing how the messenger can matter as much as the message. Capital Y launched the Y Academy to prepare next-generation heirs.
The sector's growth brings structural weaknesses. Switzerland's fragmented market faces scale and governance gaps, and Mr Douchet warned that many small French family offices, often run by retiring former private bankers, may disappear with their clients. Digital infrastructure is another weak point: Ms Meister cited inadequate cyber security and risk assessment, and a lack of standardised platforms. According to Deloitte, 72 per cent of family offices are under- or only moderately invested in operational technology. Values, sustainability and impact are also increasingly shaping mandates, according to the speakers.
Nicole Curti, president of the Alliance of Swiss Wealth Managers and CEO of Capital Y, argued that banks are not structured to address the holistic needs of wealthy families, including succession, education and governance. Rémi Douchet, co-founder and CIO of iVesta Family Office in Paris, said many clients are first-generation entrepreneurs in their 40s or 50s who want someone to act as chairman of their wealth. He said the number of multi-family offices in France has risen from about five a decade ago to around 100. Özge Doğan, founder of Istanbul-based Karman Beyond, said generational change is acting as a catalyst in Turkey, which is at an earlier stage.
Doris Meister of Wilmington Trust said that while banks offer broader products, they often do not manage the whole picture, and that the wealthiest families have set up their own offices. She noted that comprehensive in-house models require scale, with families of at least $500mn to $1bn typically needed to hire professional investment management.
Succession planning is presented as a central and urgent challenge as Baby Boomers age. Family offices often act as neutral intermediaries in these transitions, with Ms Doğan describing how the messenger can matter as much as the message. Capital Y launched the Y Academy to prepare next-generation heirs.
The sector's growth brings structural weaknesses. Switzerland's fragmented market faces scale and governance gaps, and Mr Douchet warned that many small French family offices, often run by retiring former private bankers, may disappear with their clients. Digital infrastructure is another weak point: Ms Meister cited inadequate cyber security and risk assessment, and a lack of standardised platforms. According to Deloitte, 72 per cent of family offices are under- or only moderately invested in operational technology. Values, sustainability and impact are also increasingly shaping mandates, according to the speakers.
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