Ultra-Wealthy Clients Remain Key to Family Office Success

The face of family offices (FOs) is changing.

Once FOs were primarily viewed as trusted, risk-averse conservers of wealth for ultra-high-net-worth clients, but that role is morphing. Increasingly, FOs are emerging as funding sources for early-stage startups and proponents of alternative investment opportunities like blockchain and AI.

Yet, despite this evolution, ultra-wealthy clients remain the bread and butter for family offices around the globe.

As JP Morgan Private Bank recently determined: “While there has been an increasing familiarity and interest in family offices, our research indicates that they continue to be largely the domain of families with significant assets. Globally, the average total net worth of the families being served by the surveyed family offices is $1.4 billion.”

This is great news for family offices because JP Morgan found that the pool of prospective ultra-rich clients continues to expand.

In 2004, about 157,000 ultra-high-net-worth individuals owned 9.6 percent of global private wealth. As of 2022, 395,070 ultra-rich individuals collectively controlled more than $45 trillion, or about 10.6 percent of all global wealth.

This upward trajectory will likely continue, say JP Morgan analysts.

?? Read the full analysis here. ??

#Avestix #AVXI #FamilyOffice

This article is for informational purposes only. All investments involve risk and some investments and investment sectors discussed may not be suitable for all investors. Please consult your financial advisor before making any investment decisions. Views expressed in this article do not necessarily reflect the opinions of Avestix or its employees.