Family offices have become a prominent and increasingly important topic in recent years. This mechanism carries the dual governance mission of corporate governance and family governance, and can provide substantial benefits for family enterprises seeking stable transformation or intergenerational succession.

According to recent international surveys, the number of family offices worldwide and the assets under management (AUM) they oversee have grown at historic rates. The overall market size is expected to exceed USD 22 billion by 2026, while total AUM is gradually approaching USD 6 trillion. From a geographical perspective, North America remains the largest market, but the Asia-Pacific has experienced significant growth in recent years, particularly Singapore and Hong Kong. The number of family offices in the region is projected to reach 2,600 by 2026, and families in the region are investing significantly more resources in generational succession and wealth transfer than the global average. In addition, due to the favorable tax policies and neutral geopolitical position of the United Arab Emirates, Dubai and Abu Dhabi have rapidly emerged as new hubs attracting ultra-high net worth individuals.

The concept of the family office can be traced back to the sixth century in Europe, when royal households employed a majordomo to manage estates, finances, and daily administrative affairs. In modern financial history, the House of Morgan, Rockefeller family office, and Mellon family office are often regarded as among the earliest examples of family enterprises using this structure. The Rockefeller family established its family office in 1882, moving beyond the traditional steward role by building a professional team composed of accountants, lawyers, and investment experts. This structure integrated asset allocation, legal and tax management, philanthropy, and family governance, and influenced the development of family offices worldwide.

The core mission of family offices has remained constant over the years, but what has changed dramatically is the environment and range of risks they must confront. Observing recent global trends, private equity funds, private credit, real estate, and infrastructure have accounted for an increasing share of asset allocation portfolios, often exceeding 40%. In addition, due to rising interest rates and inflation, family offices are increasingly favoring investments with stable cash flows such as private credit and green infrastructure, seeking risk-adjusted returns superior to those available in public markets. Moreover, an increasing number of large family offices are no longer investing primarily through external funds, but rather are directly investing in startups or mature companies, allowing them to exercise greater control while reducing management fees. In an environment characterized by global uncertainty, family office must demonstrate exceptional resilience and flexibility in their investment strategies to safeguard the long-term sustainability of family enterprises.

As the world enters the largest wave of generational wealth transfer in history, beyond the traditional goals of creating, preserving, and transferring wealth, the next generation of successors is placing greater emphasis on ESG principles, impact investing, and digital assets. Impact investing has become an effective way to attract younger family members to participate in family affairs, while also developing their investment capabilities. It can also help mitigate value conflicts that often arise during succession. In recent years, cross-continental peer networks among family offices have emerged. Such networks typically begin by conducting joint due diligence on impact projects, facilitating information exchange and co-investment. When necessary, participants may provide concessionary capital to reduce early-stage project risks. Investment outcomes are often measured using frameworks such as the Impact Reporting and Investment Standards (IRIS+) or the Science Based Targets initiative (SBTi). Notably, a growing number of family offices now include an impact profit and loss statement in their annual reviews, treating it with importance comparable to financial statements.

Looking ahead to 2026, family offices around the world still face numerous challenges, including geopolitical. According to a survey conducted by BlackRock, more than 80% of family offices regard geopolitics and trade disputes as the most significant financial threats. As a result, family offices must adjust their asset allocation strategies through dedicated governance structures and agile technology, while strengthening their role as providers of patient capital – focusing not only on financial returns, but also on family values and business continuity amid global instability.

In the Asia-Pacific, Singapore and Hong Kong have both introduced policies to establish favorable environments for family offices. Singapore emphasizes its role as a global safe harbor, highlighting its legal stability and asset protection frameworks to attract family capital from Southeast Asia, the Middle East, Europe, and North America. After surpassing its target for attracting family offices in 2025, Hong Kong launched its Family Office 2.0 strategy, which focuses on expanding the breadth of asset classes while strengthening connections with mainland China.