Mon, Nov 24, 2014
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. Regulatory - Stringent rules for hedge funds make the financial system fragile[more]

    From FT.com: …It is one thing to impose a regulatory burden when there is a clear need to do so. Banks are underwritten by taxpayers via deposit insurance as well as the too-big-to-fail safety net; they need to be reined in, and if they shrink as a result, that may be welcome. But it is another thin

  2. Investing - Apple: Hedge funds are crazy about it, Greenlight Capital took stake in Citizens Financial after IPO, Tiger Global added to Hertz, exited Dollar General last quarter, Oberweis sells NQ Mobile stake as Valiant adds shares, Whitney Tilson sticks to losing bet on MagicJack shares, Brigade Capital backs €90m Quinn sale[more]

    Apple: Hedge funds are crazy about it From Techinsider.net: Apple Inc. is still the most popular stocks among hedge funds. According to a recent report by hedge fund tracking site Insider Monkey, more than one out of 5 hedge funds are invested in Apple Inc. At the moment there are

  3. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

    From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

  4. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  5. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca