Massive wealth generation and the establishment of family offices are relatively new phenomena in Asia. Nonetheless, the region is rapidly professionalizing and adopting best practices, according to a report by Citi Private Bank.
Family offices in the Asia Pacific region are rapidly becoming professionalized. For example, it leads among all regions worldwide in terms of separation from the family business, as agreed by 75 percent of respondents in a report by Citi Private Bank entitled «Global Family Office 2024 Survey Insights».
It was also a global leader in having a succession plan in place for family office leadership (51 percent versus 35 percent globally).
«Despite the relative youth of this industry in Asia Pacific, regional family offices appear to be learning fast from their global peers,» the report said.
Room for Improvement
Nonetheless, there was plenty of room for improvement in other areas.
Asian family offices had the lowest percentage of respondents (49 percent) who claimed to have clear processes and internal controls. The region was also a laggard with regards to having a governing board in place (45 percent versus 50 percent globally) and having a formal strategic plan (44 percent versus 47 percent globally).
The report was based on a survey of 338 participants from June 4 to July 15, of which 21 percent were from APAC. Within the region, 61 percent had assets under management (AUM) of under $500 million while 39 percent had over $500 million in AUM.
