Market researcher, Campden Wealth said family offices employ more than 20,000 people globally. Many of these families have set up family offices to help manage their investments as well as their daily lives. Margaret Collins in a recent Bloomberg article “The big business of Sergey Brin” said that a Boston Consulting Group study showed that more than 14,600 families globally had assets of at least $US100 million, up 42 per cent since 2008. “In the average Asian family office, just three investment professionals manage about $400 million of assets, that compares with five to six professionals managing between $300 million and $1 billion in Europe or the US.” Prahl estimates that Asia currently has about 200 family offices compared to about 1,000 in Europe and 3,000 in the US. “Driven by the region’s economic expansion, the number of wealthy individuals is expected to rise 40 percent by 2023.’
Insead’s Michael Prahl said Asian and Middle East family offices will more than double in the next eight years. New wave of Asian of multi-millionaires and billionairesĪsia booming economies have created many ultra-high net-worth families and businesses that have a growing demand for family offices to help them manage their investments and assets.įamily offices are small financial institutions created to manage ultra-high net worth portfolios.Ī recent The Wealth-X report said that Asia had 52 new billionaires in 2014, of which 33 were from China.Īt the same time, according to a UBS report, family offices in the Asia Pacific had an average of US$480 million assets under management in 2013 and managed more than US$20 billion in private wealth.
Investor AB is a Swedish family office that controls major stakes in many companies drug maker AstraZeneca PLC and telecommunications giant Ericsson.Īccording to Bloomberg, Tsai quit his US$700,000 Investor AB annual salary position in Hong Kong handling direct investments, private-equity and venture-capital funds in 1999 to work with Jack Ma and Alibaba for $US600 per year.
#Iconiq family office professional
Vulcan, Microsoft co-founder Paul Allen’s family office employs more than 500 people that manage an in-house media company, a multi-billion dollar investment portfolio and ownership of professional sports teams such as the Portland Trail Blazers of the NBA and the NFLs Seattle Seahawks.īefore joining Alibaba Tsai, a Yale law school graduate from Taiwan, previously worked for Investor AB, an investment vehicle controlled by the Wallenberg family. Google founder Sergey Brin has a Los Altos, California based family office Bayshore Global Management that manages his investments. In establishing a family office, Tsai is following a long-line of US internet entrepreneurs.įacebook’s Mark Zuckerberg was an early investor in Iconiq Capital, a San Francisco based multi-family office, that also handles accounts for Facebook CEO, Sheryl Sandberg. They said Yale’s endowment has been a pioneer in investing in new asset classes and young managers, including providing the initial capital for the $18 billion Chinese investment firm Hillhouse Capital, which is also managed by a Yale alumnus, Zhang Lei.
endowments like Yale University, where Tsai studied. The family office would be set up in Hong Kong to help Tsai diversify his wealth as IPO lock-ups expire.Ī recent Wall Street Journal article “Alibaba’s Joseph Tsai to open multi-billion dollar family office by Mia Lamar and Rick Carew said Tsai’s family office will be modeled on the investment programs of prestigious U.S. Just six months after Alibaba’s successful US$25 billion New York Stock Exchange initial public offering (IPO), its Chief Financial Officer Joseph Tsai announced that he would be forming a multi-billion dollar family office. As many Asian families attain substantial liquidity following successful listings in global capital markets, large family offices are being created.