APAC family offices optimistic despite macro uncertainty, succession plan urgency

Family offices in the Asia-Pacific (Apac) region are optimistic about growth in family wealth and assets under management (AUM) despite geopolitical instability and market uncertainties, according to a report by Deloitte Private and Raffles Family Office.

Among 89 single family offices surveyed, 84% anticipate an increase in family wealth, and 77% expect growth in AUM in 2024. The average AUM was US$1 billion, with average wealth at US$2.1 billion.

Despite the confidence, 37% lack a succession plan, with 35% expecting a generational transition within a decade. About 20% consider this a core risk, and more than a third are prioritizing succession planning for 2024.

In 2023, top asset classes included equities (25%), private equity and direct lending (21%), real estate (19%), and fixed income (19%). For 2024, the focus is on increasing allocations to developed market equities (32%) and real estate (31%).

William Chow, Deputy CEO of Raffles Family Office, emphasized that Apac family offices are balancing risk awareness with renewed focus on equities amid changing market conditions.

Article by Mia Pei for The Business Times. Read more here or in the PDF below.

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