Family Office Study: Next Gen Taking a Bigger Role in Investment Strategy

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  • Younger family members want a bigger focus on ESG and the long-term future of the office, research shows.
  • But private markets and digital assets are increasingly important for younger generations.

Younger family members are increasingly taking a bigger role in driving the investment strategy of family offices, new global research from Ocorian, the specialist global provider of services to high net worth individuals and family offices, financial institutions, asset managers, corporates, shows. 

Its international study with more than 130 family office professionals responsible for around $62.425 billion assets under management found 87% report more involvement from the next generation in developing and reviewing the investment strategy of their family office.

More than a third (35%) of those questioned say the next generation is becoming much more involved. Just 1% say younger family members are becoming less involved in the family office’s investment strategy.

ESG and ensuring the long-term future of the family office is top of their agenda when reviewing investment strategy, the research from Ocorian, which works with more than 60 family offices around the world.

Around 85% of those questioned say younger family members focus on the long-term sustainability of the family office when they become involved in investment strategy while 84% want to focus more on ESG considerations of the strategy.

However the research for Ocorian, which provides services to HNW individuals and family offices as well as financial institutions, corporates and asset managers, found increasing interest in private markets investment and digital assets. Around 78% said younger family members want the investment strategy to include private markets and 74% want it to look at digital assets.

Younger family members have a bigger risk appetite than the founders or older generations. Around 70% questioned report a bigger risk appetite from the next generation while 61% say younger family members want a bigger focus on philanthropy.

The research also found family offices are increasingly looking to invest in private companies with which the family already has an interest, or background. Around 34% expect that to increase dramatically over the next two years while 61% believe the trend will increase slightly.

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