Thu, Jun 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cerulli: U.S. multiple family offices' AUM increased 68% between 2007 and 2011 to $777bn

Thursday, December 06, 2012
Opalesque Industry Update - Assets under management for multiple family offices increased 68% between 2007 and 2011 to $777.3 billion, according to recent research released by Boston-based global research firm Cerulli Associates.

"The term family office is synonymous with wealthy families and the impressive wealth of the ultra-high-net-worth and high-net-worth investors is attractive to asset managers," states Bing Waldert, director at Cerulli.

Cerulli defines a family office as an organization that is established to serve the financial and nonfinancial needs of families with significant wealth by providing integrated wealth management that is completely independent and customized for each client. Many multiple family offices are structured as a registered investment advisor (RIA) and tailor its model to provide personalized wealth management services to its clients based on a well-established portfolio construction process.

The December issue of the U.S. Asset Management Edition of The Cerulli Edge reviews the opportunities and challenges of managing multigenerational wealth.

"High-net-worth investors tend to be incredibly fickle. They are aggressive investors, but seek capital preservation," Waldert explains. "They also maintain multiple advisory relationships."

"The family office and high-net-worth market can be an attractive one for asset managers," Waldert continues. "Working with high-net-worth investors and families carries unique advantages and disadvantages. The familial aspect of these investors creates decentralized and complex decision-making. However, the multigenerational nature of extreme wealth means these same investors have long time horizons and can accept illiquidity."

Cerulli's research shows that understanding the decision-making process of each multiple family office will allow asset managers to better target the offices. Different types of family offices can have a variety of decision-making methods around manager selection. Understanding this process will help to guide what resources asset managers should dedicate to these firms.

Before entering this market, asset managers need to be aware of the unique needs of high-net-worth investors and families, Cerulli warns. The family dynamics present in this market make it significantly different than any other market.

Press release

These findings and more are from The Cerulli Edge: U.S. Asset Management Edition, December 2012 issue.

CLICK HERE to request a press copy of this research.

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.