Home Insights Family Office The Family Office Advantage: Unlocking Strategic Wealth Opportunities

The Family Office Advantage: Unlocking Strategic Wealth Opportunities

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TIGER 21

Published On

December 9, 2024

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Chair Insights, Family Office

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Family offices today are shaping the future of private wealth with a unique combination of strategic foresight, values-driven investment, and the power of patient capital. As stewards of family legacy, they are increasingly setting new standards in wealth management and impact, going beyond traditional investments to create lasting change.

Recent insights from 2024 family office reports by UBS, J.P. Morgan Private Bank, and RBC Wealth Management reveal how family offices are evolving and driving this impact with purposeful strategies.

Direct Investment as a Foundation for Enduring Wealth

Direct investment has become a cornerstone of family office strategy, offering not only control but also alignment with family values and reduced reliance on intermediaries. According to a study from Bastiat Partners and Kharis Capital, 40% of family offices now view private equity as central to their approach, directing capital into high-growth sectors like technology and clean energy. The UBS Global Family Office Report 2024 emphasizes that this shift is helping family offices build not just wealth, but legacies aligned with their core principles.

40% of survey respondents planning to increase their allocations to private equity over the next two years
Family Offices and the Future of Private Markets,
Bastiat Partners and Kharis Capital

Preparing for Generational Leadership

Succession planning remains essential for family offices, particularly as younger generations begin to take on leadership roles. Many are finding ways to engage the next generation early—through mentorship, shadowing, or participation in investment committees. However, J.P. Morgan’s 2024 Global Family Office Report notes that nearly 30% of family offices still lack a structured approach to succession. For those that do, involving younger heirs in decision-making from the outset is proving to be one of the best ways to prepare them to lead with a deep understanding of the family’s mission.

Involving the next generation in decision-making early on is one of the best ways to prepare them to lead.

Investing with Values at the Core

More and more, family offices are structuring their portfolios to reflect family values. This shift goes beyond mission statements, focusing instead on investments that support sustainability, community, and innovation. By aligning investment decisions with core principles, family offices are building a foundation for both resilience and purpose, extending their influence well beyond financial returns.

Strategic Co-Investing: Unlocking Opportunities Through Partnership

A growing number of family offices are joining forces with others, pooling resources and insights through co-investments. These partnerships allow family offices to tackle more complex opportunities with reduced risk, broadening their reach and enhancing deal flow. This approach is not only financially advantageous but also builds relationships and trust within the family office community, reinforcing a shared commitment to impactful, long-term wealth management.

Co-investing can offer family offices access to more complex opportunities while reducing risk.

Leveraging Technology for Informed Decision-Making

In today’s fast-paced environment, family offices are increasingly adopting technology to improve operational efficiency and data-driven decision-making. Wealth aggregation platforms, which offer a real-time view of assets, have seen adoption rise to 46% in 2024, according to the 2024 North America Family Office Report from RBC Wealth Management.

The next generation is leading the charge, embracing tools like data analytics and artificial intelligence to make informed investment decisions. These digital capabilities enhance transparency and add depth to portfolio management, keeping strategies both relevant and responsive.

Addressing Geopolitical and Economic Risks

With growing global tensions and inflationary pressures, family offices are taking proactive steps to safeguard wealth. A 2024 UBS survey highlights that 70% of family offices in North Asia view geopolitical risk as their top concern for the next five years. Many are responding by diversifying into developed market bonds, a move toward safer, income-generating assets that provide stability in uncertain times.

70% Percent of North Asia family offices that view geopolitical risk as their top concern over the next five years.
UBS Global Family Office Report 2024

Purpose-Driven Philanthropy and Legacy Building

Family offices are redefining philanthropy by focusing on strategic, impact-driven initiatives. As shared in the UBS 2024 Global Family Office Report, 57% of family offices with operating businesses are now incorporating sustainability considerations into their business practices. Through initiatives that address social and environmental challenges, family offices are building legacies that resonate beyond financial wealth and are making meaningful contributions to society.

Human Capital: Attracting and Retaining Exceptional Talent

With family offices becoming increasingly complex, building strong, aligned teams is essential. Many are investing in talent acquisition, mentorship programs, and competitive incentives to attract professionals who understand both business goals and family dynamics. This emphasis on human capital ensures operational efficiency and fosters a culture that aligns with the family’s values and long-term vision.

Looking Ahead at the Future of the Family Office

As family offices mature, they are stepping into their roles as long-term leaders, balancing wealth preservation with a purpose-driven vision. This demands more than just an adaptive investment strategy. It requires a commitment to values, a forward-looking perspective, and a readiness to innovate. With their distinctive approach to wealth management, family offices are positioned to shape private markets and build enduring legacies for generations to come.

TIGER 21 Family Office Groups focus on creating generational success by bringing together single-family office principals in a confidential, trusted peer-learning environment. Family Office Members collaborate on issues including governance, succession, estate planning, philanthropy, and next-gen family dynamics. Learn more about the TIGER 21 Family Office Group experience.

About Ronald Diamond

Ronald Diamond is the Chicago and Family Office Chair for TIGER 21, the premier peer membership organization for ultra-high-net-worth entrepreneurs, investors, and executives. He is also the Founder and Chairman of Diamond Wealth, as well as the Founder, Host, and CEO of Family Office World Media, a leading platform for family offices to collaborate, innovate, and access valuable resources.

Ron serves on the Advisory Board and Steering Committee for the University of Chicago Booth School of Business Family Office Initiative and is a member of the Leadership Circle of the Aspen Institute. A dedicated philanthropist and civic leader, he is recognized as a thought leader and LinkedIn Top Voice. Ron frequently shares insights on Family Office topics and is a sought-after speaker at conferences worldwide.

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