Australia's family office sector now manages at least $323 billion in assets, highlighting the growing influence of private wealth on the nation's investment landscape.
The growth also reflects a broader global trend towards professional wealth management among ultra-high-net-worth families.
What is a family office?
A family office is a private organisation established to manage the financial, investment, governance, succession and administrative affairs of a wealthy family.
Family offices can operate exclusively for a single family or provide services to multiple wealthy families.
“As wealth creation, inter-generational wealth transfers and business exits continue to accelerate globally, family offices have emerged as an increasingly important segment of the investment market, often being used as a vehicle to diversify family asset exposures,” said Dr. David Gallagher, executive director of research at Rainmaker Information.
Traditionally, one of the most private and opaque segments of the wealth market, family offices disclose limited information. To bridge this information gap and uncover new opportunities for market participants, the report combines two complementary data lenses: Rainmaker Information’s long-term tracking of Australian family office assets and Family Office Access’ global directory of operational structures and decision-makers.
Australia’s family office landscape
Rainmaker Information identified 99 Australian family offices reporting funds under management, collectively overseeing $323 billion, up from $88.6 billion in 2010. By organisation count, Australia accounts for 2.2% of all recorded family offices globally, with 133 active offices identified across the country.
The median Australian family office manages approximately $1.2 billion across all reporting entities, rising to $2.0 billion among offices actively reporting in the most recent calendar year.
Among the major capital cities, Sydney accounts for 36% of reported Australian family office assets, while Perth represents a further 30%, reflecting the concentration of entrepreneurial and resources-related wealth in those cities.
Melbourne accounts for 23% of family office funds under management, with Brisbane accounting for 11%.
Offices managing $1 billion or more control 93% of reported assets, while the 10 largest family offices account for 56% of total funds under management.
“The rapid growth of Australia's family office sector reflects both the accumulation of private wealth and the increasing complexity of managing it,” said Dr. David Gallagher, executive director of research at Rainmaker Information.
"Australia has produced a growing number of successful entrepreneurs, business owners and multi-generational wealth holders over the past two decades.”
“As family wealth becomes larger and more complex, many families are turning to dedicated family office structures to oversee investments, governance and succession planning."
The global family office comparison
The global family office market comprises 5,957 family offices across 89 countries and 1,102 cities, underscoring the scale and geographic reach of the sector.
North America remains the dominant global hub, accounting for 51% of recorded family offices, while Europe accounts for 23%.
The countries with the highest number of family offices are the United States (46%), Switzerland (7%), England (5%), Germany (4%) and Canada (4%), with the top five countries accounting for two thirds of all family offices.
Single family offices and multi-family offices account for similar proportions of the global market, representing 40% and 35% respectively, demonstrating the diverse approaches wealthy families take when structuring their wealth management arrangements.
Gallagher said family offices are becoming more important participants across private and public investment markets.
"Family offices are no longer simply wealth preservation vehicles. Many have evolved into sophisticated investment organisations with long-term horizons and significant allocations across listed equities, private markets, property, infrastructure and alternative assets."
“The findings reinforce the growing relevance of family offices for asset managers, advisers and financial services providers seeking to understand changing sources of investment capital.”
The full report, The Family Office Market: Geography, Structure and Representation Across the Recorded Market, was produced by Family Office Access in collaboration with Rainmaker Information, with both organisations being part of ISS Market Intelligence.
Originally published at www.rainmaker.com.au/media-release/australias-family-office-market-surpasses-323-billion
About us:
About Rainmaker Information
Rainmaker Information, founded in 1992, is a leading Australian-based financial services information publishing house providing marketing intelligence, research, and consulting services on the wealth management industry.
Rainmaker gathers and generates in-depth marketing intelligence with industry research, data, professional development and media capabilities. These resources can be accessed with a subscription to the Rainmaker MarketPro terminal.
Rainmaker Information is owned by Institutional Shareholder Services (ISS) and is part of its ISS Market Intelligence business.
About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading global provider of data, analytics, insights, media, and events solutions to the global financial services industry.
ISS MI empowers global asset and wealth management firms, insurance companies, distributors, service providers, and technology firms by providing cutting-edge market-engagement platforms and the actionable intelligence necessary to fully assess their target markets, identify and analyse the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business.
ISS MI clients benefit from our increasingly connected global ecosystem that leverages a combination of proprietary data, powerful software and analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.
Contact details:
Julian Clarkstone
P. 02 8234 7514
E. [email protected]