MarketCurrents Wealth Management examines the rise of family offices in emerging markets.
Explosive growth in emerging markets has prompted the creation of family offices in those regions to manage newly-created fortunes.
Both hard data and anecdotal evidence show that emerging-markets family offices continue to prefer owning assets directly rather than through financial instruments or even vehicles like hedge funds. But private-equity funds focused in the emerging markets may be a natural progression for investors who call those same regions home.
In East Asia, cities including Singapore and Hong Kong continue to vie for status as an epicenter of wealth management. In the same vein, they are both attractive locations for family offices seeking to invest in a variety of asset classes around the globe.
There’s also been a rush to serve family offices in places like Greater China where their numbers are growing rapidly. Some private bankers at a major institution, for instance, recently left to create their own shop focusing in part on the booming family office business.
We also delve into the lesser-known world of family offices in Latin America and the Middle East. Many of those families hold wealth that is much older than their Asian counterparts and can hardly be called “emerging” As we explain, their age and experience has an impact on their investing styles and general ways of doing business.