Ocorian's study reveals that 80% of family offices have expanded their international operations over the past five years. This reflects trends marked by geographic diversification and adaptation to increasingly complex asset portfolios.
In addition to these economic motivations, reasons linked to family mobility and geopolitical risk management were frequently cited by respondents, with 41% highlighting international tensions. Opening up to new markets, such as Asia, notably Hong Kong and Singapore, was also significant. These two financial centers are attracting more and more players thanks to their attractive regulatory environments and infrastructures dedicated to family offices, which facilitate cross-border investments.
While Europe and the USA remain strongholds, Asia seems to be becoming a must for those seeking to diversify and protect family assets over the long term. One of the main reasons cited for this internationalization is the need to offer families better protection against political, tax and economic uncertainties.
Ocorian's report highlights the growing importance for these structures of guarding against localized crises and adapting to an increasingly fragmented world, both economically and in terms of regulation.
Changing expectations and challenges for family offices
The Ocorian study, relayed by Spears, also highlights the changing expectations of wealthy families in terms of services, particularly the management of globalized portfolios. These portfolios now include non-traditional investments, such as alternative assets, impact projects or investments in green technologies, which require more specialized expertise. This trend is prompting family offices to recruit experts around the world, in order to gain a better understanding of these new asset classes and the opportunities they present. However, the challenges are not absent.
As they globalize, family offices also have to contend with stricter and often disparate regulations in different jurisdictions. Tax compliance is thus becoming a central issue, as is the management of data confidentiality and security, particularly for ultra-wealthy families. The study points to a growing need for personalized services, as each family has its own priorities, whether in terms of philanthropy, inheritance or private investments. In addition, access to international banking services has become a key factor for family offices seeking to optimize the management of their assets and minimize risk. Private banks and asset managers, aware of these needs, are positioning themselves as strategic partners, offering tailor-made solutions adapted to the requirements of each family.
The Ocorian study suggests that this internationalization will continue to intensify, not least through the development of new financial products and increasingly sophisticated investment strategies. Another key point raised is the need for family offices to regularly evaluate their structures in order to remain competitive and adapt their services to the rapid evolution of global markets. Indeed, globalization has led to an increase in mergers and acquisitions, as well as strategic partnerships between family offices, aimed at sharing resources or maximizing synergies in foreign markets.
In this context, wealth managers and strategy consultants play a vital role in helping these family offices navigate an increasingly complex international environment. The need for expert advice on tax, regulatory and investment matters is all the more crucial as differences between jurisdictions can have a significant impact on investment profitability. Finally, the report highlights a shift in thinking: more and more family offices are taking a proactive approach to sustainability and social impact. By investing in environmentally-friendly initiatives and supporting high-impact projects, these structures aim not only to preserve their wealth, but also to play an active role in resolving global challenges.
The future of family offices therefore seems to be marked by geographical diversification, increased complexity of asset portfolios, and a move towards more personalized services, all in an international setting where regulatory and tax compliance is becoming central. Their success will largely depend on their ability to adapt to these new paradigms while maintaining the trust of their customers.
Photo: mana5280 via Unsplash
This post was translated from the original French.