Why Asia is the new prime location for family offices
- Kelvin Tan
- Jul 19, 2024
- 1 min read
Over the past decade, Singapore has seen a dramatic increase in its millionaire population, now nearing 250,000, while London's has declined by 10% to 227,000. This shift highlights Singapore's rise as a global wealth hub, surpassing the traditional financial centers of the West.
Asia, in general, has become a significant driver of global wealth, hosting 9% of the world’s 20,000 family offices according to the 2023 Global Family Office Compensation Benchmark Report.
Financial centers like Singapore and Hong Kong are prime locations for family offices. Singapore's policies attract enterprises in sectors like advanced manufacturing and technology, while Hong Kong diversifies into innovative technology and aviation. The structures favored by family offices differ, with Singapore preferring the Variable Capital Company (VCC) structure and Hong Kong opting for Family-owned Investment Holding Vehicles (FIHVs).
Asian family offices are increasingly investing in private markets, with a significant focus on tech-oriented companies. The UBS Global Family Office Report 2023 highlights a high demand for equities and private equity deals, with 77% of private equity investments directed towards technology firms.
Looking ahead, family offices are poised for growth, focusing on sustainable investing and local business investments.
Article by Neil Synnott for Fund Selector Asia. Read more here or in the PDF below.
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