Next Generation Takes Helm At European Family Offices - Study

Tom Burroughes

17 November 2021

A new generation is taking the helm of European family offices, with about a third of the “Next Gen” running the show, according to a new report.

The report, based on statistical analysis from 385 surveys with family offices worldwide, with 108 being based in Europe, found that a third of the next generation have already assumed control of their family wealth. Some 34 per cent will do so within the next 10 years.

Despite this, a key risk is “unpreparedness for succession,” as only 12 per cent of family offices feel that the next generation is fully prepared, the study said.

The report was produced by Campden Wealth and sponsored by Deloitte Private, part of the global consultancy and accountancy group, Deloitte.

For some time the industry has been full of talk about wealth and business transfer to the "Next Gen." Banks and other firms serving family offices and high net worth individuals are battling to ensure that they retain and attract this business at a time when traditional business models are under pressure.

WealthBriefing, meanwhile, works with Highworth Research, a provider of data about single family offices, to describe what SFOs are investing in. Click here to register on the Highworth database.

Risk management
Following the COVID-19 pandemic and an uptick in cyber incidents, family offices are increasingly focused on risk management. More than a third of European family offices experienced a cyber attack over the last 12 months, higher than the global average of 30 per cent, the report said.

Among other findings, the report said that more than half of family offices are seeking new investment opportunities, with 51 per cent also planning to allocate more to direct private equity investments, and 43 per cent to private equity funds.

In terms of investment, European family offices are beginning to focus more on cryptocurrency, with over one in four investing in the asset. Whilst crypto currently makes up only one per cent of their investment portfolio, 17 per cent of family offices plan to allocate more in 2022.

In December 2020 Deloitte examined the views of wealthy families in the Middle East about their investments.