Top 10 Family Office Trends of 2024: Insights from Deloitte Private’s Global Edition
Family offices around the world are projecting growth despite challenging economic conditions, recession fears, and geopolitical tensions, according to the latest report from Deloitte Private. The report, titled The Top 10 Family Office Trends of 2024, highlights key takeaways from a survey of 354 single family offices with an average assets under management (AUM) of US$2.0 billion.
One of the key trends identified in the report is the shift in investments from public to private equity. Private equity has now surpassed public equity as the number one asset class family offices invest in, with direct private equity investments accounting for 17% of the average portfolio. Family offices are also looking to increase their investments in private equity funds, direct private investments, and private debt/direct lending in 2024.
Additionally, the report highlights the growing focus on sustainable investing among family offices. While 46% of family offices worldwide currently engage in sustainable investing, European family offices are leading the charge with 57% actively involved in sustainable investing. Climate-related investments, such as affordable, clean energy, are among the top sustainable investment areas for family offices.
In terms of hiring, family offices are looking to expand their teams with a focus on professionalizing their offices further. Financial services, accounting, and consulting firms are the top targets for recruitment, as family offices seek to bring in non-family professionals to assume leadership roles post-succession. Outsourcing to third parties is also on the rise, with a third of family offices relying more on external providers to improve service levels and support their initiatives.
Succession planning is another key focus for family offices in 2024, with 41% of wealthy families expected to undergo generational succession within the next 10 years. However, many family offices lack confidence that the next generation is prepared to take over, citing challenges such as maturity, qualifications, and interest levels. As a result, mentoring and training programs are being prioritized to ensure the readiness of the next generation.
Overall, the report provides valuable insights for family offices looking to navigate the current landscape and plan for long-term success. With a focus on risk management, sustainable investing, hiring, and succession planning, family offices are positioning themselves for growth and resilience in the face of ongoing challenges.
