We pride ourselves on offering valuable insights into the world of Family Offices. This year stands out as one of significant change, presenting new challenges and reshaping established norms. Here are some of the core trends we saw dominate 2023.
1) Shifting concerns
Last year, Family Offices were predominantly anxious about inflation. This year, things have shifted. Geopolitical concerns now top the list, a trend we predict will continue into 2024 due to ongoing tensions in Europe and the Middle East. Notably, the order may vary across jurisdictions. In the United States, Family Offices are most concerned about a recession, while in the Asia-Pacific region and Europe, geopolitical issues are the top concern for most Family Offices.
2) High-net-worth migration
This year marked a significant year for high-net-worth migrations: around 122,000 individuals relocated. The top choices were Australia, the UAE, and Singapore – a movement reflecting the state of economies and geopolitical realities. We expect this trend to carry over to 2024.
Notably, the UAE is positioning itself as a global Family Office hub, leveraging favourable regulatory frameworks and tax policies in 2023. Dubai and Abu Dhabi, particularly with initiatives like the Family Arrangements Regulations and the Emirates Family Office Association, are driving the growth and attracting high-profile figures like Ray Dalio. It is anticipated that the UAE will continue to draw interest from Family Office across the world in the upcoming year.
3) The talent hunt dilemma
According to the Global Family Office Compensation Benchmark Report 2023, 251 out of 650 Family Offices stated plans to expand their teams. Yet, finding the necessary talent proves to be a constant problem.
There was fierce competition for top-tier talent in 2023, with UK-based financial firms and Family Offices struggling as professionals left for the US, Europe, or Asia, drawn by better compensation packages. This ‘people problem’ is set to persist in 2024, and as a trusted resources consultancy, we are committed to working with Family Offices worldwide to solve their people problems, read this to see how Agreus can help.
4) New regulatory hurdles
Family Offices faced fresh regulatory challenges in 2023. Foremost among these were stricter reporting standards, raising privacy concerns. In the US, Family Offices must now disclose Beneficial Ownership information under the Corporate Transparency Act. Similarly, Singapore now requires Single Family Offices to report annually on their total assets managed. Family Offices must stay ahead of these requirements and develop compliance strategies to navigate this shifting landscape.
As ever, Agreus keeps an eye on industry developments to provide the insights and expert opinions you need to prosper in the Family Office environment. Should you have any questions or wish to discuss how these shifts affect you personally, our team is always available to talk about your recruitment needs.