Australia's family offices surpass $323bn in assets

Family offices in Australia have surpassed $323 billion in assets, according to data from Rainmaker Information.

"As wealth creation, inter-generational wealth transfers and business exits continue to accelerate globally, family offices have emerged as an increasingly important segment of the investment market, often being used as a vehicle to diversify family asset exposures," Rainmaker Information executive director of research David Gallagher said.

Rainmaker Information identified 99 Australian family offices reporting funds under management, collectively overseeing $323 billion, up from $88.6 billion in 2010.

Australia accounts for 2.2% of all recorded family offices globally, with 133 active offices identified across the country.

The data showed that the median Australian family office manages approximately $1.2 billion across all reporting entities, rising to $2 billion among offices actively reporting in the most recent calendar year. Offices managing $1 billion or more control 93% of reported assets, while the 10 largest family offices account for 56% of total funds under management.

"The rapid growth of Australia's family office sector reflects both the accumulation of private wealth and the increasing complexity of managing it," Gallagher said.

"Australia has produced a growing number of successful entrepreneurs, business owners and multi-generational wealth holders over the past two decades.

"As family wealth becomes larger and more complex, many families are turning to dedicated family office structures to oversee investments, governance and succession planning."

Sydney accounted for 36% of reported Australian family office assets, while Perth represented a further 30%, reflecting the concentration of entrepreneurial and resources-related wealth in those cities, the report said.

Gallagher said family offices are becoming more important participants across private and public investment markets.

"Family offices are no longer simply wealth preservation vehicles. Many have evolved into sophisticated investment organisations with long-term horizons and significant allocations across listed equities, private markets, property, infrastructure and alternative assets," he added.

"The findings reinforce the growing relevance of family offices for asset managers, advisers and financial services providers seeking to understand changing sources of investment capital."