Family offices are facing changes in investment policy and approach as the next generation of family members become more involved, analysis from Ocorian has shown.

Its research found that 93 per cent of family office professionals, including those working for multi-family offices, said the next generation differed from the preceding generations on how to run the family office.

More than a third (34 per cent) stated that the next generation’s opinion on running a family office differed significantly.

The vast majority (82 per cent) felt the next generation was getting more involved in developing and reviewing the family office’s investment strategy, while 35 per cent reported much more involvement.

When assessing the key areas of difference for the next generation, Ocorian found that two-thirds (66 per cent) of family office professionals highlighted digital assets.

Nearly half (46 per cent) pointed to an increased focus on private markets, with other key areas of difference including ESG/impact investing (42 per cent), investment risk appetite (34 per cent), geographical footprint (31 per cent), and asset allocation/investment strategy (28 per cent).

Ocorian’s research also found that 82 per cent of family office professionals expected an increase in family offices investing in companies that family members have an interest or background in.

Almost all (99 per cent) believed that more needed to be done around succession planning.

However, 94 per cent of family office professionals felt there was a natural succession of wealth and leadership in the family offices they work with.

“Differences in approach and priorities between different generations in family offices are natural and to be expected but do need to be recognised and included in succession planning,” commented Ocorian commercial director, Michael Harman.

“This highlights the importance of seeking professional support in the structuring and administration of the family office, as it is clear there is not a one-size-fits-all approach.

“It is clear from the study that most family office professionals believe there is an acceptance that succession planning is crucial and also that most have taken action to ensure the longevity of the family office.”

---