JP Morgan Global Family Office Report 2024: 190 Family Offices with $864 Million Average AUM, 82% for 2 & 3 Generations, Average Annual Cost $3.2 Million, Average 11 Employees, Top 3 Goals are Manage Financial Assets, Succession Planning & Wealth Advisory, Average Investment Target Return 10.8%, Asset Allocation in Public Equities 26%, Alternatives 45%, Fixed Income & Cash 20%, Commodities 1.5%, Infrastructure 0.5%, Other 5%
17th May 2024 | Hong Kong
JP Morgan has released the JP Morgan Global Family Office Report 2024, providing key insights into 190 single family offices globally with average $864 million AUM (Assets under Management). No. of Generations served in family office – 1 generation 11%, 2 generations 45%, 3 generations 37%, 4 generations 6%, 5 generations 1%. No. of Households served in family office – 1 household – 24%, 2 to 3 households 26%, 4 to 5 households 26%, 6 to 10 households 16%, More than 11 households 8%. Top 3 Family Office Goals – Managing financial assets of the family 96%, Succession planning & preparing for the next generation 69%, Wealth Advisory 66%. Top 3 International Family Office Goals (Exclude United States) – Managing financial assets of the family 100%, Wealth Advisory 70%, Succession planning & preparing for the next generation 65%. Cost of running family office – Average $3.2 million, Median $1.3 million. Average family office annual cost AUM $50 m to $500 million – $1.5 million. Average family office annual cost AUM $501 m to $999 million – $2.7 million. Average family office annual cost for AUM > $1 billion – $6.1 million. Typical operating costs – Facilities, Staffing, Technology, Risk management, Investment, Accounting, Legal, Taxes. Average employees in family office – 11 employees. Family Office average employees AUM > $1 billion – 19.7 employees. Family Office average employees AUM $501 m to $999 million – 9.3 employees. Family Office average employees AUM $50 m to $500 million – 6.1 employees. Family Office Services Financial Assets Management (In-house) – Private Investments 78%, Investment Management 66%, Trading & Market Execution 29%, Investment Banking Services 16%. Family Office Services Administration (In-house) – Financial Administration 88%, Staffing & Compensation 87%, Balance Sheet Aggregation & Reporting Services 75%, Concierge & lifestyle Services 64%, Speciality Asset Management & Maintenance 47%, Accounting & Taxes 46%. Family Office Services Legacy, Succession Planning & Philanthropy (In-house) – Philanthropic Services 72%, Family Office Governance / Succession Planning 57%, Family Wealth Education 46%, Estate Planning 36%, Matrimonial & Family Planning 21%. Family Office Services Risk Management (In-house) – Insurance Management 47%, Cybersecurity Services 18%, Legal Services 17%. Governance in family office – Investment committee 43%, External advisors that review the family office portfolio periodically 37%, Board of directors 33%. With Family Council (United States / International) – 14% / 30%. Promote cohesion with a family constitution (United States / International) – 13% / 28%. 6 Ways To Promote family cohesion – Regular whole family meetings 37%, Family assembly 24%, Family retreat 23%, Written family history &/or regular family storytelling 19%, Family council 18%, Family constitution 17%. Top Concern in promoting family cohesion (United States / International) – Individuals have a sense of personal achievement, and that wealth does not lead to complacency 57% / 37%. 5 Ways to Prepare Next Generation in family office – Philanthropic endeavours 39%, Require professional experience outside the family operating business or office 38%, Encourage entrepreneurial spirit by providing access to capital for startups &/or direct investing 36%, Involve next generation in operating business 32%, Shield individuals from extent of family’s wealth 23%. Investment decisions in family office – Family principal 48%, Investment committee 30%, Informally by consensus of family members 11%, CIO (non-family member) 7%. Set long-term target return for family office – Yes 55%, No 45%. Family Office Target Return – Average 10.8%, Median 7.6%. How family office evaluate investment return – Relative benchmark, Detailed benchmark based on the strategic asset allocation, Absolute benchmark, Published endowment return. Top 10 Investments – Private Equity 86%, Public Equity 85%, Real Estate 77%, Cash 75%, Investment Grade Fixed Income 62%, Venture Capital 52%, Hedge Funds 45%, Private Credit 38%, High Yield 24%, Commodities 21%. Family office Asset Allocation – Public Equities 26%, Alternatives 45%, Fixed Income & Cash 20%, Commodities 1.5%, Infrastructure 0.5%, Other 5%. Breakdown of Alternatives (45% Allocation) – Real Estate 14%, Private Equity 17%, Venture Capital 4.8%, Hedge Funds 5.2%, Private Credit 4%. Top 7 external investment services used – Investment Management 71%, Access To Managers 67%, Trade Execution 62%, Asset Allocation & Portfolio Construction Advice 61%, Capital Markets Research 61%, Portfolio Performance Analysis 57%, Portfolio Risk Analysis 45%. Key roles that exist in family office – CEO / President 36%, CFO 28%, CIO 25%, COO 16%, General Counsel 8%. Other roles that exist in family office – Any other roles 83%, Admin Assistant 61%, Accountant 55%, Controller 34%, Investment Analyst 34%, Property Manager 26%, Portfolio Manager 19%, Head of Family Foundation / Philanthropy Director 15%, Head of People / Talent 10%, Head of Technology 9%. See below for key findings & summary | View report here
“ 190 Family Offices with $864 Million Average AUM, 82% for 2 & 3 Generations, Average Annual Cost $3.2 Million, Average 11 Employees, Top 3 Goals are Manage Financial Assets, Succession Planning & Wealth Advisory, Average Investment Target Return 10.8%, Asset Allocation in Public Equities 26%, Alternatives 45%, Fixed Income & Cash 20%, Commodities 1.5%, Infrastructure 0.5%, Other 5% “
JP Morgan Global Family Office Report 2024: 190 Family Offices with $864 Million Average AUM, 82% for 2 & 3 Generations, Average Annual Cost $3.2 Million, Average 11 Employees, Top 3 Goals are Manage Financial Assets, Succession Planning & Wealth Advisory, Average Investment Target Return 10.8%, Asset Allocation in Public Equities 26%, Alternatives 45%, Fixed Income & Cash 20%, Commodities 1.5%, Infrastructure 0.5%, Other 5%
JP Morgan has released the JP Morgan Global Family Office Report 2024, providing key insights into 190 single family offices globally with average $864 million AUM (Assets under Management). See below for key findings & summary | View report here
Overview
- 2022 – 395,070 UHNWs with $45 trillion wealth (10.6% of global wealth)
- 2027 – 528,100 UHNWs with $60.3 trillion wealth (11.1% of global wealth)
- No. of family offices in 2018 – Between 6,000 to 7,300
- No. of family offices in 2023 – Between 10,000 to 20,000
- Factors for increased interest for family office – Privacy, Control, Customization, Financial asset management, Direct investments
Summary
- Total family offices surveyed – 190
- United States – 144 family offices
- International – 46 family offices
- Average AUM – $864 million
- AUM $50 m to $500 million – 45%
- AUM $501 m to $999 million – 24%
- AUM > $1 billion – 31%
- No. of Generations served in family office – 1 generation 11%, 2 generations 45%, 3 generations 37%, 4 generations 6%, 5 generations 1%
- 2 & 3 Generations served in family office – 82% of family offices
- No. of Households served in family office – 1 household – 24%, 2 to 3 households 26%, 4 to 5 households 26%, 6 to 10 households 16%, More than 11 households 8%
- Top 3 Family Office Goals – Managing financial assets of the family 96%, Succession planning & preparing for the next generation 69%, Wealth Advisory 66%
- Top 3 International Family Office Goals (Exclude United States) – Managing financial assets of the family 100%, Wealth Advisory 70%, Succession planning & preparing for the next generation 65%
- Cost of running family office – Average $3.2 million, Median $1.3 million
- Average family office annual cost AUM $50 m to $500 million – $1.5 million
- Average family office annual cost AUM $501 m to $999 million – $2.7 million
- Average family office annual cost for AUM > $1 billion – $6.1 million
- Typical operating costs – Facilities, Staffing, Technology, Risk management, Investment, Accounting, Legal, Taxes
- Average employees in family office – 11 employees
- Family Office average employees AUM > $1 billion – 19.7 employees
- Family Office average employees AUM $501 m to $999 million – 9.3 employees
- Family Office average employees AUM $50 m to $500 million – 6.1 employees
- Family Office Services Financial Assets Management (In-house) – Private Investments 78%, Investment Management 66%, Trading & Market Execution 29%, Investment Banking Services 16%
- Family Office Services Administration (In-house) – Financial Administration 88%, Staffing & Compensation 87%, Balance Sheet Aggregation & Reporting Services 75%, Concierge & lifestyle Services 64%, Speciality Asset Management & Maintenance 47%, Accounting & Taxes 46%
- Family Office Services Legacy, Succession Planning & Philanthropy (In-house) – Philanthropic Services 72%, Family Office Governance / Succession Planning 57%, Family Wealth Education 46%, Estate Planning 36%, Matrimonial & Family Planning 21%
- Family Office Services Risk Management (In-house) – Insurance Management 47%, Cybersecurity Services 18%, Legal Services 17%
- Governance in family office – Investment committee 43%, External advisors that review the family office portfolio periodically 37%, Board of directors 33%
- With Family Council (United States / International) – 14% / 30%
- Promote cohesion with a family constitution (United States / International) – 13% / 28%
- 6 Ways To Promote family cohesion – Regular whole family meetings 37%, Family assembly 24%, Family retreat 23%, Written family history &/or regular family storytelling 19%, Family council 18%, Family constitution 17%
- Top Concern in promoting family cohesion (United States / International) – Individuals have a sense of personal achievement, and that wealth does not lead to complacency 57% / 37%
- 5 Ways to Prepare Next Generation in family office – Philanthropic endeavours 39%, Require professional experience outside the family operating business or office 38%, Encourage entrepreneurial spirit by providing access to capital for startups &/or direct investing 36%, Involve next generation in operating business 32%, Shield individuals from extent of family’s wealth 23%
Investment Summary
- Investment decisions in family office – Family principal 48%, Investment committee 30%, Informally by consensus of family members 11%, CIO (non-family member) 7%
- Set long-term target return for family office – Yes 55%, No 45%
- Family Office Target Return – Average 10.8%, Median 7.6%
- How family office evaluate investment return – Relative benchmark, Detailed benchmark based on the strategic asset allocation, Absolute benchmark, Published endowment return
- Top 10 Investments – Private Equity 86%, Public Equity 85%, Real Estate 77%, Cash 75%, Investment Grade Fixed Income 62%, Venture Capital 52%, Hedge Funds 45%, Private Credit 38%, High Yield 24%, Commodities 21%
- Family office Asset Allocation – Public Equities 26%, Alternatives 45%, Fixed Income & Cash 20%, Commodities 1.5%, Infrastructure 0.5%, Other 5%
- Breakdown of Alternatives (45% Allocation) – Real Estate 14%, Private Equity 17%, Venture Capital 4.8%, Hedge Funds 5.2%, Private Credit 4%
- Top 7 external investment services used – Investment Management 71%, Access To Managers 67%, Trade Execution 62%, Asset Allocation & Portfolio Construction Advice 61%, Capital Markets Research 61%, Portfolio Performance Analysis 57%, Portfolio Risk Analysis 45%
- Key roles that exist in family office – CEO / President 36%, CFO 28%, CIO 25%, COO 16%, General Counsel 8%
- Other roles that exist in family office – Any other roles 83%, Admin Assistant 61%, Accountant 55%, Controller 34%, Investment Analyst 34%, Property Manager 26%, Portfolio Manager 19%, Head of Family Foundation / Philanthropy Director 15%, Head of People / Talent 10%, Head of Technology 9%
JP Morgan Global Family Office Report 2024
1) Overview – Family Offices & UHNWs Population
UHNWs & Wealth:
- 2022 – 395,070 UHNWs with $45 trillion wealth (10.6% of global wealth)
- 2027 – 528,100 UHNWs with $60.3 trillion wealth (11.1% of global wealth)
No. of family offices:
- Estimated no. of family offices in 2018 – Between 6,000 to 7,300
- Estimated no. of family offices in 2023 – Between 10,000 to 20,000
Factors for increased interest for family office:
- Privacy
- Control
- Customization
- Financial asset management
- Direct investments
2) JP Morgan Family Office Survey Profile
Family Office Survey
- Total family offices – 190
- United States – 144 family offices
- International – 46 family offices
- Average AUM – $864 million
International
- Europe – 65%
- Asia – 19%
- South America – 16%
Family Office AUM (Assets under Management)
- AUM $50 m to $500 million – 45%
- AUM $501 m to $999 million – 24%
- AUM > $1 billion – 31%
AUM Breakdown
- $50 m to $100 million – 6%
- $101 m to $250 million – 15%
- $251 m to $500 million – 24%
- $501 m to $999 million – 24%
- More than $1 billion – 31%
Net Worth of Family:
- $50 m to $100 million – 3%
- $101 m to $250 million – 14%
- $251 m to $500 million – 19%
- $501 m to $999 million – 33%
- $1 b to $5 billion – 35%
- More than $5 billion – 5%
No. of Generations served in family office:
- 1 generation – 11%
- 2 generations – 45%
- 3 generations – 37%
- 4 generations – 6%
- 5 generations – 1%
Serving 2 & 3 generations – 82% of family office
No. of Households served in family office:
- 1 household – 24%
- 2 to 3 households – 26%
- 4 to 5 households – 26%
- 6 to 10 households – 16%
- More than 11 households – 8%
Top 6 Family Office Goals:
- Managing financial assets of the family – 96%
- Succession planning & preparing for the next generation – 69%
- Wealth Advisory – 66%
- Impact Investing & Philanthropy – 46%
- Continuing the entrepreneurial legacy of family – 43%
- Concierge & lifestyle services – 40%
International Family Office Goals (Exclude United States):
- Managing financial assets of the family – 100%
- Wealth Advisory – 70%
- Succession planning & preparing for the next generation – 65%
- Continuing the entrepreneurial legacy of family – 43%
- Impact Investing & Philanthropy – 30%
- Concierge & lifestyle services – 28%
3) Cost of running family office:
Annual cost of running family office:
- Average – $3.2 million
- Median – $1.3 million
Breakdown – Annual cost of family office
- Less than $1 million – 33%
- $1 m to $3.99 million – 43%
- $4 m to $6.99 million – 12%
- $7 m to $9.99 million – 5%
- More than $10 million – 8%
Average Annual cost of family office by AUM:
- AUM > $1 billion – $6.1 million
- AUM $501 m to $999 million – $2.7 million
- AUM $50 m to $500 million – $1.5 million
Median (50th Percentile) Annual cost of family office by AUM:
- AUM > $1 billion – $4.2 million
- AUM $501 m to $999 million – $1.5 million
- AUM $50 m to $500 million – $400,000
Typical operating costs:
- Facilities
- Staffing salaries, bonuses, long-term incentive compensation, benefits and insurance
- Technology
- Risk management
- Investment management expenses (eg. investment management fees, trading, execution, custody & research costs)
- Accounting & reporting
- Legal services
- Taxes
4) Employees in family office
- Average – 11 employees
No. of employees in family office:
- 1 to 5 employees – 50%
- 6 to 10 employees – 22%
- 11 to 20 employees – 17%
- 25 to 50 employees – 5%
- More than 50 employees – 3%
Average No. of employees in family office by AUM:
- AUM > $1 billion – 19.7 employees
- AUM $501 m to $999 million – 9.3 employees
- AUM $50 m to $500 million – 6.1 employees
Median (50th Percentile) No. of employees in family office by AUM:
- AUM > $1 billion – 9.1 employees
- AUM $501 m to $999 million – 2.8 employees
- AUM $50 m to $500 million – 2.1 employees
5) Services in Family Office:
Financial Assets Management (In-house / Outsourced):
- Private Investments – 78% / 17%
- Investment Management – 66% / 32%
- Trading & Market Execution – 29% / 63%
- Investment Banking Services – 16% / 59%
Administration (In-house / Outsourced):
- Financial Administration – 88% / 5%
- Staffing & Compensation – 87% / 5%
- Balance Sheet Aggregation & Reporting Services – 75% / 18%
- Concierge & lifestyle Services – 64% / 11%
- Speciality Asset Management & Maintenance – 47% / 19%
- Accounting & Taxes – 46% / 54%
Legacy, Succession Planning & Philanthropy (In-house / Outsourced):
- Philanthropic Services – 72% / 10%
- Family Office Governance / Succession Planning – 57% / 26%
- Family Wealth Education – 46% / 20%
- Estate Planning – 36% / 57%
- Matrimonial & Family Planning – 21% / 38%
Risk Management (In-house / Outsourced):
- Insurance Management – 47% / 38%
- Cybersecurity Services – 18% / 59%
- Legal Services – 17% / 81%
Managing Cybersecurity Risk:
- Use a technology platform provider that monitors the family office’s cybersecurity – 58%
- Require family & family office employees to undergo cyber safety best practices training – 37%
- Hired a third-party defence provider – 33%
- Hired an in-house cyber defence team – 8%
5) Investment in Family Office:
Investment decisions in family office:
- Family principal – 48%
- Investment committee (family & non-family) – 30%
- Informally by consensus of family members – 11%
- CIO (non-family member) – 7%
- Other – 4%
Set long-term target return for family office:
- Yes – 55%
- No – 45%
Family Office Target Return:
- Average: 10.8%
- Median: 7.6%
Target Return breakdown:
- Return of 4% to 6% range – 11%
- Return of 6% to 10% range – 53%
- Return of 10% to 20% range – 34%
- Return of more than 20% – 3%
How family office evaluate investment return:
- Any of the below – 76%
- Relative benchmark – 45%
- Detailed benchmark based on the strategic asset allocation – 32%
- Absolute benchmark – 20%
- Published endowment return – 4%
- Other – 5%
Family offices investing in the following assets:
- Private Equity – 86%
- Public Equity – 85%
- Real Estate – 77%
- Cash – 75%
- Investment Grade Fixed Income – 62%
- Venture Capital – 52%
- Hedge Funds – 45%
- Private Credit – 38%
- High Yield – 24%
- Commodities – 21%
- Infrastructure – 9%
- Other – 24%
Family office Asset Allocation (Average)
- Public Equities – 26%
- Alternatives – 45%
- Fixed Income & Cash – 20%
- Commodities – 1.5%
- Infrastructure – 0.5%
- Other – 5%
Breakdown of Alternatives (45% Allocation):
- Real Estate – 14%
- Private Equity – 17%
- Venture Capital – 4.8%
- Hedge Funds – 5.2%
- Private Credit – 4%
Breakdown of Fixed Income & Cash (20% Allocation):
- Cash – 8.8%
- Investment Grade Fixed Income – 10.1%
- High Yield – 1.8%
Top 7 external investment services used:
- Investment Management – 71%
- Access To Managers – 67%
- Trade Execution – 62%
- Asset Allocation & Portfolio Construction Advice – 61%
- Capital Markets Research – 61%
- Portfolio Performance Analysis – 57%
- Portfolio Risk Analysis – 45%
6) Key roles in family office
Key roles that exist in family office:
- CEO / President – 36%
- CFO – 28%
- CIO – 25%
- COO – 16%
- General Counsel – 8%
Non-Family Member holding key roles in family office (> $1 billion):
- CEO / President – 63%
- CFO – 100%
- CIO – 87%
- COO – 92%
- General Counsel – 96%
Non-Family Member holding key roles in family office ($501 m to $999 m):
- CEO / President – 45%
- CFO – 83%
- CIO – 81%
- COO – 78%
- General Counsel – 100%
Non-Family Member holding key roles in family office ($50 m to $500 m):
- CEO / President – 42%
- CFO – 75%
- CIO – 63%
- COO – 61%
- General Counsel – 50%
Roles that exist in family office:
- Any other roles – 83%
- Admin Assistant – 61%
- Accountant – 55%
- Controller – 34%
- Investment Analyst – 34%
- Property Manager – 26%
- Portfolio Manager – 19%
- Head of Family Foundation / Philanthropy Director – 15%
- Head of People / Talent – 10%
- Head of Technology – 9%
7) Family Governance
Governance in family office:
- Investment committee – 43%
- External advisors that review the family office portfolio periodically – 37%
- Board of directors – 33%
- Other – 8%
Family Governance (United States / International):
- Family Council – 14% / 30%
- Promote cohesion with a family constitution – 13% / 28%
7 Ways To Promote family cohesion:
- Regular whole family meetings (apart from more social family retreats and trips) – 37%
- Family assembly (i.e., regular whole family gatherings) – 24%
- Family retreat (i.e., informal family trip) – 23%
- Written family history &/or regular family storytelling – 19%
- Family council (i.e., regular gatherings of select family members) – 18%
- Family constitution (i.e., by-laws, statement of shared values and common objectives) – 17%
- Other – 4%
Top 5 Concerns in promoting family cohesion – United States:
- Individuals have a sense of personal achievement, and that wealth does not lead to complacency – 57%
- Individuals are prepared for the responsibility of inheriting wealth – 56%
- Members of the next generation do not end up in family conflicts over issues related to inheritance and succession – 53%
- Individuals are fiscally responsible and maintain a financially sustainable lifestyle – 47%
- Involvement of spouses of the next generation in operating business or family office – 24%
Top 5 Concerns in promoting family cohesion – International:
- Individuals have a sense of personal achievement, and that wealth does not lead to complacency – 37%
- Individuals are prepared for the responsibility of inheriting wealth – 35%
- Individuals are fiscally responsible and maintain a financially sustainable lifestyle – 33%
- Members of the next generation do not end up in family conflicts over issues related to inheritance and succession – 30%
- Involvement of spouses of the next generation in operating business or family office – 15%
5 Ways to Prepare Next Generation in family office:
- Encourage philanthropic endeavours – 39%
- Require professional experience outside the family operating business or office – 38%
- Encourage entrepreneurial spirit by providing access to capital for startups &/or direct investing – 36%
- Involve next generation in operating business – 32%
- Shield individuals from extent of family’s wealth – 23%
JP Morgan Global Family Office Report 2024
From October 17 through December 15, 2023, the Family Office Practice conducted an online survey with our global single family office clients. A total of 190 family offices participated, 144 in the United States and 46 internationally.
Survey:
- Total family offices – 190
- United States – 144
- International – 46
International:
- Europe – 65%
- Asia – 19%
- South America – 16%
Global Single Family Offices (Exclude United States) – 46
Europe – 65%:
- Germany 28%
- United Kingdom 9%
- Switzerland 7%
- Spain 7%
- France 4%
- Denmark 2%
- Guernsey 2%
- Italy 2%
- Jersey 2%
- Luxembourg 2%
Asia – 19%:
- Singapore 13%
- Hong Kong 4%
- China 2%
South America – 16%:
- Chile 4%
- Costa Rica 4%
- Argentina 2%
- Panama 2%
- Uruguay 2%
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