More than A$4.5 trillion of superannuation savings and at least $323 billion of family office assets: that’s the latest picture of Australia’s private wealth landscape.
Rainmaker Information has worked with Family Office Access to produce a report on Australia’s family office market, “traditionally one of the most private and opaque segments of the wealth market”, Rainmaker said.
“The family office market: geography, structure and representation across the recorded market”, was produced on the back of Rainmaker’s long-term tracking of Australian family office assets and Family Office Access’ global directory of operational structures and decision-makers.
Estimates of the country’s super funds pool are more prevalent.
“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 Dr David Gallagher said.
The estimated $323 billion of family office wealth is with 99 Australian family offices reporting funds under management, says Rainmaker, which says the number was $88.6 billion in 2010.
“By organisation count, Australia accounts for 2.2% of all recorded family offices globally, with 133 active offices identified across the country,” the firm said.
“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.”
Sydney (36%) and Perth (30%) account for two-thirds of the estimated family office wealth.
Gallagher said the growth of Australia’s family office sector reflected both the accumulation of private wealth and the increasing complexity of managing it.
“Australia has produced a growing number of successful entrepreneurs, business owners and multi-generational wealth holders over the past two decades,” he said.
“As family wealth becomes larger and more complex many families are turning to dedicated family office structures to oversee investments, governance and succession planning.”
The countries with the highest number of family offices are the United States (46% of global total), Switzerland (7%), England (5%), Germany (4%) and Canada (4%), with the top five countries accounting for two-thirds of all family offices.
Gallagher said many family offices had evolved into sophisticated investment organisations with long-term horizons and significant allocations across listed equities, private markets, property, infrastructure and alternative assets.
