Global Family Office Differences (Zurich)

TL;DR

Family offices in Western countries, like the United States and Western Europe, are more developed and popular compared to non-Western countries, with a higher number of options and competition. However, family offices in non-Western countries, such as Israel and Australia, are growing quickly but still have limited options and mainly attract first generational wealth.

Transcript

hello this is richard wilson coming to you from zurich switzerland i'm here in town to help chair a conference on investments and ultra high net worth and hedge funds and what i want to talk to you today being in zurich was about how family offices are different around the world today i'm in switzerland a few days ago i was in brazil in sao paulo b... Read More

Key Insights

• 🧑‍💼 The concept of family offices is more popular in Western countries, with thousands of family offices in the United States and Western Europe.
• 💗 Non-Western countries have limited options and fewer well-developed family offices, but they are growing quickly.
• 🧑‍💼 Family offices in non-Western countries mainly attract first generational wealth, who are more interested in growth and taking risks.
• 🚱 The second, third, and fourth generational wealth in non-Western countries often prioritize capital preservation.
• 🧑‍💼 The popularity and competitiveness of family offices in Western countries contribute to their established and developed nature.
• 🧑‍💼 Family office models in Western countries offer a full balance sheet 360-degree financial solution.
• 🏤 Western European countries and the United States have the highest concentration of family offices globally.

Questions & Answers

Q: How does the popularity of family offices differ between Western and non-Western countries?

Family offices are highly popular in Western countries, with thousands of family offices in the United States alone. However, non-Western countries have fewer well-developed family offices and limited options for ultra high net worth individuals.

Q: What is the main driver of growth for family offices in non-Western countries?

The growth of family offices in non-Western countries is mainly driven by first generational wealth. These individuals, who have recently become wealth creators, are more interested in growth and taking risks compared to second, third, or fourth generational wealth.

Q: How do family office models differ between Western and non-Western countries?

Family office models in Western countries have been developed to be highly competitive and offer a full balance sheet 360-degree financial solution. In contrast, non-Western countries have limited options for well-developed family office models.

Q: Are there any specific non-Western countries that have a significant number of family offices?

While some cities in non-Western countries like Australia have a decent amount of family office competition, the majority of non-Western countries have very few well-developed family offices. Israel, for example, only has two or three family offices that provide a full-service model in the whole country.

Summary & Key Takeaways

• Family offices are more popular and developed in Western countries, with thousands of family offices in the United States alone.

• Non-Western countries, like Israel and Australia, have fewer well-developed family offices, with limited options for ultra high net worth individuals.

• The first generational wealth is driving the growth of family offices in non-Western countries, as they are more interested in growth and taking risks.