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The traditional approach is showing its cracks. A fragmented model of wealth management, once sufficient, now struggles to serve the complexity of modern wealth. Family offices have recognised this shift — their numbers have surged from 6,130 globally in 2019 to 8,030 in 2024. Following a similar trajectory, family offices’ total estimated AUM currently stands at US$3.1 trillion and is expected to rise by 73% to US$5.4 trillion by 2030.
Why this dramatic shift? Because wealth at this level demands orchestration, not just management. Consider the scope — investment teams handle portfolios across multiple jurisdictions, while tax experts navigate international regulations. Succession planners work across generations, as risk managers monitor everything from market volatility to cybersecurity threats. When wealth reaches a certain scale, everything connects.
The numbers tell a compelling story. A typical family office today manages around $2 billion in assets. They oversee multiple asset classes, operate across several jurisdictions, and coordinate with numerous professional advisers.
In today’s sophisticated family office, investment management extends far beyond stocks and bonds into direct private equity, which now comprises 30% of the average portfolio. Venture capital, real estate, and digital assets demand specialised attention. Tax planning coordinates across multiple jurisdictions, handling international reporting requirements and structuring efficient wealth transfer mechanisms. Succession planning manages transitions across generations, with family offices increasingly focusing on multi-generational wealth transfer
Risk management encompasses everything from market risks to reputation management, cybersecurity to political exposure. Family governance creates frameworks for decision-making, manages family councils, and develops next-generation leaders. Philanthropy programs align strategic giving with family values while optimising tax efficiency. All these elements work in concert, not isolation.
The benefits become clear in practical terms. When a family office spots an investment opportunity, they don’t just analyse returns. Their tax experts immediately assess implications across jurisdictions. Legal teams review structure options. Risk managers stress-test scenarios. Family governance experts ensure alignment with long-term goals. All this happens simultaneously, not sequentially.
Technology has made this holistic approach not just possible but necessary. With a growing number of family offices using portfolio management systems and risk monitoring tools, the infrastructure for integrated oversight exists. But technology serves the strategy, not the other way around.
The next generation is accelerating this shift. $84 trillion will be transferred from Baby Boomers to younger generations between now and 2045. These inheritors, armed with international education and global perspectives, are pushing for more sophisticated approaches. They understand that sustainable investing isn’t separate from returns, that digital assets need specialised expertise, that family governance matters as much as investment governance. Most of the family offices with an operating business are either taking sustainability considerations into account or plan to do so in the future
Look at any major wealth destruction event, and you’ll often find the same pattern — decisions made in silos, opportunities evaluated in isolation, risks assessed too narrowly. In a world where sophisticated offerings like family offices are available, operating wealth in a fragmented manner is inefficient, undesirable, and risky, as it fails to leverage the comprehensive wealth management and coordination benefits these specialised services provide.
This need for holistic management cuts across cultures and markets. From old European wealth to new Asian money, from tech billionaires to industrial dynasties — the challenges are surprisingly similar. Wealth needs to be preserved, grown, and transferred. It needs to create meaning beyond money. It needs to adapt to changing times while honouring its origins.
The question for significant wealth isn’t whether to adopt a holistic approach, but how quickly to implement it. With global wealth projected to increase by 38% over the next five years, reaching US$629 trillion by 2027, the complexity will only increase. The future belongs to those who can see and manage the whole picture, not just its parts.
—The author, Swati Saxena, is Founder & CEO, 4Thoughts Finance. The views are personal.
