Family offices in the Americas are seeing growing differences in priorities and approach between founders and the next generation, new research from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows (please see the attached press release).

Ocorian’s study among family office professionals working in the US, Canada, Bermuda and the Cayman Islands collectively responsible for around $32.8 billion assets under management found 93% say there are generational differences in their family with a third (33%) saying there are significant differences. 

The biggest area of difference identified by 68% of those questioned is investing in digital assets while 52% point to differences over ESG and impact investing. Around a half (50%) say there are differences over the focus on investing in private markets, while asset allocation and investment strategy are contentious topics for 34%.

Differences over approach and priorities are driving a bigger focus on succession planning, with all executives questioned saying more work needs to be done. Almost all (93%) report a natural succession of wealth and leadership at the family offices they work for. 

Around 92% say ensuring they have the right governance in place to meet the needs and expectations of family members is the biggest challenge they face.

The research found more than three-quarters (77%) say their family offices have become more professional in their operations and structure over the past five years. The other 23% say their family office was already professional.

A major area in which family offices have become more professional identified by the study is strengthening the family constitution or introducing one, which was highlighted by 62% questioned. More than half (54%) said increased support from third-party providers had helped professionalise the family office.

Fredrica Evans, Head of Trust Services at Ocorian, Bermuda, commented: “Differences in approach and priorities between founders and the next generation in family offices are inevitable and natural but can lead to issues if not handled with skill and precision.

“Family offices in the Americas are focusing on the issue and realise more needs to be done to address any emerging issues before they become problematic. This is where our team plays a valuable role – our trusted relationships with our clients mean that we can facilitate conversations ahead of them becoming contentious. Our clients appreciate our holistic, thoughtful and highly structured approach.”

Ocorian’s award winning dedicated family office team provides a seamless and holistic approach to the challenges and opportunities families face. Its service is built on long-term personal relationships that are founded on a deep understanding of what matters to family office clients. Its global presence means Ocorian can provide bespoke structures and services for international families no matter where they live.

Key services include formation and administration of family offices, HR support services, support with lifestyle and luxury assets, family governance, resident and relocation services and specialist support with immigration, visas, payroll, marine and aircraft crew management and financial reporting.

NOTE:

Please note that this release is intended to provide a very general overview of the matters to which it relates and is provided for your convenience. It is not intended as legal or investment advice and should not be relied on as such.

* In July 2024 Ocorian commissioned independent research company PureProfile to interview family office investment managers working for family offices which use third-party private client services providers to support in the preservation and protection of their clients’ wealth. It contacted 60 working in the US, Canada, Bermuda and the Cayman Islands collectively responsible for $32.8 billion assets under management. Of those 38 worked for multi-family offices. The research was part of a global study which interviewed 309 family office executives.