Sat, Apr 18, 2015
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. Tiger Global falls 2.9% in March, down 5.3% in Q1[more]

    From Reuters.com: Investment firm Tiger Global Management, one of the hedge fund industry's most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent,

  2. It’s not just hedge funds—IMF study finds stability risks from ‘vanilla’ funds[more]

    From MarketWatch.com: Leveraged hedge funds and banklike money-market funds are the parts of the asset-management industry most associated with risks to financial stability. But a report from the International Monetary Fund suggests that “plain-vanilla” mutual funds and exchange-traded funds also ca

  3. Hedge funds gain 2.4% in Q1 driven by currency and commodity markets[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted positive results last March to conclude a strong first quarter, with performance driven by strong macro trends in currency and commodity markets, complemented by broad-based gains and positioning in event driven, equity hedge and fixed income-b

  4. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  5. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

 

banner