Survey: Family offices don’t walk the talk on succession

Marcus Baram
Author Marcus Baram
Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.
Jun 02, 2023
4 months ago
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succession

Despite their primary aim of supporting wealth transfer from one generation to the next, most family offices do not have a wealth succession plan, a UBS survey reveals. 

The survey, which involved 230 family office clients from 30 countries, showed that only 42% of them had a strategy for wealth succession.

Communication is a key issue for family offices when it comes to inheritance and wealth transfer. The survey showed that many family office members are not willing or ready to talk about these topics with their family members or advisors.

“How easily does your family talk about inheritance and hopes and dreams?,” a London-based family office CEO told UBS.  These things are so personal that it’s very difficult.” 

“A few years ago, we had discussions with the family where we tried to articulate values. The result was something that we struggled to embed into the family. It’s very difficult, and especially so for the finance professionals who are used to dealing with less emotional topics.”

In addition, family office members and professionals surveyed by UBS report planning major changes to their investment strategies during continued market volatility and high interest rates. 

Specifically, they are shifting allocations to bonds issued in developed markets and to emerging-market stocks and prefer investments in hedge funds and private equity firms to direct private investments, the survey found.  

About 21% say they will increase their hedge fund exposure within the next five years, preferring such strategies as global macro- and multi-strategy.

They also have a continued interest in growth investment themes, with three-fourths of respondents planning to allocate money to “digital transformation” and 67% to investments in medical devices and health technology and 64% toward automation and robotics investments.

Marcus Baram
Author Marcus Baram
Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.