The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Family offices find safety in numbers

The implosion of Bill Hwang’s Archegos Capital Management focused attention on family offices, a fast-growing, lightly regulated and ill-defined investor group. Greater oversight is surely inevitable, as is the evolution of the sector away from small, standalone entities into truly global multi-family wealth managers.

Children-gate-rural-Getty-960.jpg
Photo: Getty

When UK asset manager Schroders bought specialist London-based family office Sandaire in December 2020 it looked like a straightforward case of adding scale.

Strictly by the numbers, it wasn’t a big deal at all: at the time, Sandaire ran £2.2 billion ($3.04 billion) in assets. Schroders’ wealth business was 16 times bigger, managing assets worth £35.6 billion.

But the UK’s largest standalone asset manager knew what it was doing. In Sandaire, it got one of the best boutique advisers to the super-wealthy around – and the deal took place just as the world’s $5.9 trillion family office (FO) industry was entering a cycle of consolidation that looks set to last for years.

Family-going-up-621.jpg

Single family offices (SFOs), keen to cut costs and tap into networks – of people, products, deals and ideas – are joining forces to create multi-family offices, which in turn are merging to form super-sized multi-family offices (MFOs), many of which manage tens of billions of dollars in assets.

Family offices are – in the main – well run. Their size, reach and appetite for everything from simple equities to complex structured products makes them hugely attractive clients for commercial and investment banks.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

Tags

Elliot Wilson is Greater China Editor and Private Banking and Wealth Management Editor. He joined the magazine in 2020 having been a regular contributor focusing on China and the Indian subcontinent, Russia and Eastern Europe/the CIS. He is based in Hong Kong.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree