Episode 71: Rebecca Gooch on Succession Planning and the Family Enterprise Boom

First, we'll talk about the rise of the Modern Family Office.

We cover the Modern Family Office on the podcast.

Often in the Family Enterprise, we've discussed this institutionalization and the modernity of it with some of your guests.

friends alfredo damasis and and jim grubman dennis jaffee's coming up and others there's just a lot of change and it appears that there's such a a rapid growth and organizational change in the industry let's talk a bit about how you cover that and how does your research show this evolution especially the last couple of years

So if we look particularly at like the family office arena, we're seeing just absolutely staggering growth.

So at the moment today, we estimate that there are about 9,000 single family offices in the world today, all right? And we're expecting this number to grow to nearly 11,000 by 2030.

But if we look at this over time, so in about the decade of the lead up to 2030, so between 2019 and 2030, we expect the number of family offices to increase by a staggering 75%.

Now, if you think about different sectors or different industries, you would be hard done that by to find ones that are growing as quickly as the family office arena.

Now, if you look at the family office arena in kind of its most simplistic form, you can generally say, that North America represents the largest and wealthiest family office sector.

Europe, the oldest, but Asia Pacific, the fastest growing.

And our findings really kind of echo exactly that.

So there's about 3,500 single family offices in North America today, about 2,300 in Europe.

and about 3,200 in Asia.

And I remember looking at these figures back in 2017 and 2019, and at the time, there were more family offices in Europe and Asia, but Asia's actually surpassed that today.

But it's not only about the number of family offices that's growing, it's really the economic power behind them.

So if you look at the collective AUM of all family offices globally, it stands at a notable $3.9 trillion today, okay? Now, we're expecting this to grow to $5.4 trillion by 2030.

And, you know, sometimes you hear these really large numbers and it's kind of hard to get your head around what that means in practice.

So let me give you an example that I think really helps.

If we look at, for instance, the entire hedge fund industry, it's worth about $5 trillion today.

So what I'm saying is just the family office arena, which will be reflected by about 11,000 families, we are expecting that arena to have an AUM that surpasses the current value of the entire hedge fund industry by 2030.

So that's really, really remarkable in itself.

And of the families that own these family offices, we expect their wealth to reach nearly $10 trillion by 2030.

So a lot of the growth in this arena is really being backed by a great rise in private wealth around the world.

And also, simply put, the growing popularity of family offices is a structure.

They're doing a great job at really preserving and growing families' wealth throughout the generations.