Family offices are facing a change in investment priorities and approach as the next generation of the family become more involved, according to a new study by fund administrator, Ocorian.
It found almost all (93 per cent) of family office professionals including those working for multi-family offices questioned say the next generation differ from the founding and preceding generations on how to run the family office with a third (34 per cent) saying they differ significantly.
Key issues identified by the study include investing in digital assets which 66 per cent reported as an area of difference while nearly half 46 per cent pointed to an increased focus on private markets from the next generation.
More than four out of five (82 per cent) said the next generation was also becoming more involved in developing and reviewing the family office’s investment strategy with 35 per cent reporting much more involvement from the next generation, Ocorian’s international study of more than 300 family office professionals found.
Michael Harman, commercial director at Ocorian, said: “Differences in approach and priorities between different generations in family offices are natural and to be expected but do need to be recognised and included in succession planning."
Areas of difference for next generations in family offices | Percentage of family office professionals highlighting this area |
Digital assets | 66 per cent |
Increased focus on private market | 46 per cent |
ESG/impact investing | 42 per cent |
Investment risk appetite | 34 per cent |
Geographical footprint | 31 per cent |
Asset allocation/investment strategy | 28 per cent |
Synthesising cultural priorities | 20 per cent |
Philanthropy | 19 per cent |
Ownership of physical assets such real estate or business aircraft | 12 per cent |
