Sun, Jul 24, 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. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. HFR: Hedge funds post strong gains in mid-July as markets recover from Brexit losses[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted strong gains through mid-July as the equity markets continued the recovery from Brexit losses. The HFRX Market Directional Index gained +2.17% (+4.22% YTD) and the HFRX Global Hedge Fund Index gained +1.03% through mid-month (+0.19%

  4. News Briefs - Carlyle goes on trial for a financial-crisis meltdown, Private equity and venture capital outperformed public markets in 2015, Pippa Middleton gets engaged to hedge fund manager James Matthews[more]

    Carlyle goes on trial for a financial-crisis meltdown Carlyle Group co-founder Bill Conway was in court on this small island last week recounting one of the most bruising episodes in his private-equity firm’s history: the 2008 collapse of mortgage-bond fund Carlyle Capital Corp. Carlyle

  5. …And Finally - Two men fall off cliff playing Pokemon Go[more]

    From BizarreNews.com: Two men who fell from a seaside cliff north of San Diego told authorities they became distracted while playing augmented reality game Pokemon Go. Encinitas fire Battalion Chief Robbie Ford said one of the men fell about 50 feet down the bluff in Encinitas while the other man fe