Asian Families are Writing Their Own Playbook, Family Office Report Shows

The newly published 2024 Asia-Pacific Family Office Report by BNP Paribas Wealth Management and Campden Wealth reveals that 65% of APAC family offices have succession plans, significantly ahead of their global counterparts. This shows that APAC family offices are undergoing a transformation shift in leading the world in succession planning and challenging traditional perceptions of informal governance structures in the region.

The study, which surveyed 360 family offices worldwide — including 76 from APAC — reveals that 65% of APAC family offices have succession plans, significantly ahead of their global counterparts.

A focus on family harmony, strategic tech investments and responsible investing reveals a new era of stewardship in the region. 

Key findings at a glance 

• APAC family offices prioritise robust frameworks centered on family communication and elder care, rather than focusing primarily on investment risk management—a notable difference from European and North American family offices.
• There is a shift in investment priorities among APAC family offices, driven primarily by the need for portfolio diversification amidst increasingly correlated public markets. Approximately one-third (32%) of family offices cite diversification as their immediate investment priority, 
• To achieve this diversification, APAC family offices actively integrate alternative asset classes—including hedge funds, commodities, and gold (44%)—alongside private market investments (40%).
• Despite smaller private market allocations (18%) compared to global peers (27%), APAC family offices favor direct investments, which constitute nearly half (45%) of these holdings. 
• APAC family offices strongly emphasise responsible investing, with 55% currently integrating ESG and impact-focused strategies, outpacing their North American and European peers. This dedication also translates into philanthropic endeavors, with three-quarters of Asia-Pacific family offices make philanthropic donations, highest among its global peers (Global average 67%). 
• The alignment between responsible investing and Philanthropy illustrates a compelling shift toward purpose-driven capital.

Commenting on these findings, Arnaud Tellier, Asia CEO of BNP Paribas Wealth Management, said," The fact that APAC family offices now lead the world in structured succession planning is a testament to their thoughtful approach to governance. Moreover, Asian families are carefully adapting governance structures to reflect their unique pace, values, and vision."

“Asian families are not only writing their own playbook rooted in tradition, but also firmly establishing themselves as future global leaders in wealth stewardship,” he continued. 

Download the full report here https://bnpp.lk/CWR2024_en