Younger generations shifting family office investment strategies

Family office investment strategies are shifting as younger generations take a bigger role, new research by Ocorian has indicated.

A global study among family members and senior executives working for family offices revealed that 79 per cent said younger generations are becoming more involved in developing and reviewing investment strategies, with 97 per cent saying their priorities differ from the founders.

Ocorian’s study, based on interviews with 200 people in the family office sector with total wealth of $119.4bn, covered 16 countries or territories including the UK, US, UAE, Singapore, Switzerland, Hong Kong, South Africa, Saudi Arabia, Mauritius and Bahrain.

The findings revealed concerns about succession planning with one in eight (12 per cent) of respondents stating they are not seeing a natural succession in wealth and leadership at their family offices, while almost all (98 per cent) agreed more needs to be done on succession planning.

Areas of contention between founders and the next generation identified by the study included attitudes to private markets and digital assets. More than half (51 per cent) said younger generations have a greater focus on private markets while 42 per cent said investing in digital assets is an area of disagreement.

The study also found that 39 per cent of respondents believe younger generations want more emphasis on buying physical assets such as real estate and private aircraft, while 33 per cent pointed to differing views on geopolitical issues, and 29 per cent highlighted how younger generations have a higher investment risk appetite.

Director, private clients at Ocorian, Ginny Goh, commented: “Succession planning is crucial in family offices as they grow and mature and it is to some extent inevitable that younger generations will have different views and approaches on investment from the founders.

“As the family’s wealth expands and its priorities diversify, the need for a structured, forward-looking succession framework becomes even more essential.”

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