Among challenges for family offices is that of giving the ability for each member of the family to be heard, research found.
Nevertheless, family offices have become more professional in their governance, management and infrastructure over the past five years.
Among the findings from more than 300 family office investment managers internationally with around $155 billion of assets under management, Ocorian found:
- 53% have developed a stronger succession plan
- 48% have strengthened the family constitution or charter, or introduced one for the first time
- 46% have secured the support of more professional third parties
- 45% have strengthened the team that runs the family office.
Around 41% said they had developed a more diverse and professionally managed investment portfolio while 40% have strengthened compliance, tax and legal infrastructure.
Another finding was that 34% said they had developed a more cohesive and robust philanthropy programme.
Michael Harman, a commercial director at Ocorian, said: “It is extremely positive that so many family offices have taken significant steps in becoming more professional over the last five years, and it is certainly the biggest trend I’m seeing with my UK clients. I’d suggest this rapid and widespread professionalisation is a result of the explosion of growth in number of family offices; they simply have to professionalise as a way to stand out in an increasingly crowded market.”
However, he said one of the biggest challenges for family offices centred on regulation and compliance.
