The richest families in the world are projected to see their wealth grow even more – ultimately reaching $9.5 trillion by 2030 – as single-family offices continue to grow and expand their assets, according to a new report from Deloitte.
Family offices – privately held companies that handle the growth and management of individual families’ assets – are often used to transfer wealth between generations. The practice has become increasingly common and now rivals hedge funds as a tool for protecting and growing assets.
The number of ultra-wealthy individuals and families continues to increase. Today the amount of wealth held by family offices is an estimated $5.5 trillion, which is already a stark increase from $3.3 trillion in 2019. According to Deloitte projections, the wealth held by family offices will increase by 189% by 2030.
“Globally, family offices are expanding rapidly by focusing on their growing presence throughout different areas of the world, asset base, industry impact, and what makes a family office successful,” Wolfe Tone, Deloitte Private Global leader, Deloitte Global, said in a statement.
“As they continue to navigate ongoing economic challenges and geopolitical uncertainty, family offices are expanding their services, maturing their structures, focusing on their talent strategies, and carefully managing their investments to ensure sophisticated and efficient operations for the future.”
The number of family offices has also dramatically increased in recent years. There are an estimated 8,030 single-family offices in the world – including 3,370 in the Americas, 2,020 in Europe, 2,290 in Asia Pacific, 290 in the Middle East, and 60 in Africa. In North America, the number of single-family offices is expected to nearly double from 2019 numbers by 2030.
“Off the back of gains in their operating businesses and wider investments, the world’s most affluent families have been accumulating wealth at a meteoric pace – and we expect this trend to continue,” said Dr. Rebecca Gooch, Deloitte Private Global Head of Insights, Deloitte Global, in a statement.
“With an expectation that family wealth will nearly triple between 2019 and 2030, this is spurring demand for private wealth management structures, leading to a rapid rise in the size and sophistication of the family office arena.”
