The European Family Office Market: Where Is the Opportunity?

by Isabella Fonseca, July 18, 2008

Abstract

New York, NY, USA July 18, 2008

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The family office market is still underrepresented in Europe, with an average penetration rate of 18% of ultra-wealthy individuals. However, the market is poised for rapid expansion due to a high concentration of wealth in the region as well as a significantly underserved ultra-high net worth population.

The European high net worth market represents nearly 27% of total wealth and has been growing at a consistent 8% rate in the last two to three years. In ?, Celent provides a broad overview of this industry. The report sketches the taxonomy of family offices and the services they provide and explores the role of technology within the market. It also examines the family office markets in Austria, Benelux, Germany, Spain, and Switzerland.

Family offices are most often categorized based on the number of families they serve and on their ownership structure. For this report, Celent divides family offices into three main categories: single family offices, multi-family offices, and family office service providers. With a total of 1,920 multi-family offices (MFOs) in Europe, or 45% of the family office market, MFOs represent the strongest growth among the different types of family offices in Europe.

"The European market is less mature than the US and is still very differentiated," says Isabella Fonseca, Celent senior analyst and co-author of the report."

Of the markets evaluated, Switzerland is the most developed and still shows high potential; it has the highest presence of independent MFOs, and many of its single family offices are rapidly evolving towards the multi-family office model," she adds.

This report is a guide for firms interested in targeting high net worth individuals with family office services. The study highlights current family office models and their success factors, as well as major threats and challenges.

The report is 32 pages long and contains 12 figures and 11 tables. A table of contents is available online.

 

Members of Celent's Wealth Management research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

New York, NY, USA July 18, 2008

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Executive Summary 3
Family Office Background 4
Types of Family Offices 9
Products and Services 21
Family Office Markets 24
The Role of Technology in Family Offices 28
The Future of Family Offices 31

 

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