According to a recent report from the investment data company Preqin, the number of Family Offices worldwide more than tripled between 2019 and 2023, from 1,285 to 4,592. This boom is driven primarily by North America, where over half of all Family Office assets reside, and is reshaping the landscape of investment management and talent acquisition.
Experts estimate that Family Offices now collectively manage over $6 trillion in assets, and this figure is continuing to climb as the number of the ultra-wealthy grows. With more than 2,600 billionaires globally, and over 90,000 individuals boasting fortunes exceeding $100 million, the demand for the tailored wealth management supplied by Family Offices is at an all-time high. As more affluent families seek to preserve and grow their wealth for future generations, the need for high-calibre investment talent becomes increasingly acute.
One of the primary causes of this is the growing sophistication of Family Office investment strategies. Due to the current market volatility and uncertainty, they are embracing alternatives, including private equity, venture capital and real estate. That is leading them to hunt for not just traditional investment managers, but skilled, multifaceted investment professionals well-versed in these specialised asset classes. Beyond investment managers, Family Offices are also establishing second branch locations in different geographies, to access to local investment opportunities.
In our 2023 Global Family Office Compensation Benchmark Report, we found that over 30% of Family Offices have a second location. As they expand their global footprint, their need for international professionals capable of navigating regulatory frameworks, cultural nuances and geopolitical risks across continents and markets increases. Multilingualism, cross-cultural competency, and a deep understanding of global markets are highly valued.
There has also been a shift towards a more personalised approach to wealth management. Unlike traditional financial institutions, which often adhere to standardised investment strategies, Family Offices prioritise individualised solutions tailored to the unique objectives and values of each family. This means that investment professionals must be capable of not only delivering financial returns but also fostering long-term relationships with the family built on trust, transparency, and discretion.
In response to the burgeoning demand for investment talent, the competition for top-tier professionals within the Family Office space has intensified. To attract and retain the best and brightest minds, a competitive and comparable compensation package is paramount.
Agreus has worked exclusively with Family Offices, not only to help them find their perfect hire, but also to ensure they are compensating their talent efficiently.
Our rigorous compensation consulting process allows us to engage all parties and develop a comprehensive understanding of the roles involved.
With a proven track record of excellence and a deep understanding of the Family Offices ecosystem, Agreus stands poised to address the people problems of our clients.
For a more tailored conversation, please do not hesitate to get in touch.