Family offices in Asia-Pacific are on the rise, and money managers are finding ways to tap this ballooning segment — either by working with them as they would institutional clients, or by setting up wealth management arms to service them.
The wealth management market in the Asia-Pacific region is expected to grow to $812 billion by 2030, up from $248 billion in 2020, reflecting a 12.7% compounded annual growth rate, according to Allied Market Research.
Singapore and Hong Kong, Asia's two major financial hubs, have rolled out incentives to draw family offices including tax breaks, ease of access to markets and pathways to residency.
There were 1,084 billionaires in Asia-Pacific in 2022 worth a total of $4.2 trillion, according to the UBS Billionaire Ambitions Report 2022. Half of them (540) are from mainland China, 166 from India, 56 in Hong Kong, 40 in Japan and 26 in Singapore.
At the end of 2021, Singapore had 700 family offices, up from 400 in 2020. In a Parliament sitting on March 20, Tharman Shanmugaratnam, the senior minister in charge of the Monetary Authority of Singapore, revealed that there are 200 single family office applicants and one multifamily office application pending approval.
Several prominent names such as James Dyson, Ray Dalio, Mukesh Ambani and Sergey Brin have set up family offices in Singapore.
In late March, Hong Kong held a wealth summit and announced eight measures including tax concessions, art storage facilities and a new Capital Investment Entrant Scheme to draw wealthy families. The capital investment scheme allows individuals to reside and run a business in Hong Kong if they invest a certain amount of money in local asset markets, excluding property.
Hong Kong Chief Executive John Lee Ka-chiu had said in his 2022 policy address that the city aims to attract 200 family offices by 2025.