Key Takeaways
- • Cambridge Associates is opening a Hong Kong office to add to its Beijing and Singapore operations, hiring senior director Edwina Ho as part of a push to serve Asia-Pacific family offices.
- • According to figures cited from the Campden/UBS Global Family Office Report (2019 data), about 1,300 of roughly 7,300 single family offices are in Asia, a count that has risen more than 40% since 2017.
- • Mary Pang, head of the Global Private Client Practice, says the firm is seeing strong demand for governance guidance and that 2021 has been one of its busiest years for new clients.
- • Pang says Cambridge Associates sees value for long-term family portfolios in up to a 40% allocation to private investments such as venture capital and private equity, subject to liquidity needs and time horizon.
- • The firm typically works with family offices holding a minimum net worth of about $150 million and relies on GP relationships and a research team covering thousands of managers for due diligence.
Summary
Cambridge Associates, the investment house, is stepping up its Asia-Pacific operations as the number of family offices in the region grows. The firm recently announced it is establishing a Hong Kong office, adding to existing operations in Beijing and Singapore, and has hired senior director Edwina Ho to lead the expansion, according to the publication's interview with the firm.
Mary Pang, head of the Global Private Client Practice at Cambridge Associates, told the news service that the firm has built investment work for Asia-based clients over the past decade and sees a much larger opportunity to expand. She said Asian families are increasingly seeking to learn from family office governance models in other countries, adding that the firm receives many requests to understand governance, as control has traditionally been central to family wealth management in the region. Pang noted that second-generation family members, many educated in the West, are returning to run operating businesses and are moving to professionalize wealth structures.
Citing figures from the Campden/UBS Global Family Office Report, the article notes that of approximately 7,300 single family offices globally, about 1,300 are in Asia, with that number rising more than 40% since 2017. Pang herself relocated from San Francisco to Singapore, which she cited as reflecting the region's importance to the firm.
On private markets, Pang said Cambridge Associates sees value for long-term family portfolios in considering an allocation of up to 40% to private investments such as venture capital and private equity, as described in a firm paper on the topic. She cautioned that families vary in their comfort with the longer lock-up periods and their need for liquidity, and said the allocation is most suitable for families focused on the long term that can move quickly on allocations.
Cambridge Associates generally works with family offices with a minimum net worth of around $150 million. The firm maintains a research team that conducts due diligence on thousands of managers and says its relationships with general partners are a significant source of referrals. Pang said the firm provides ideas rather than prescriptive direction on how families should run their offices.
Pang acknowledged that pandemic-related travel restrictions have limited the firm's ability to conduct onsite manager visits and meet clients in person, which she said had "fallen off a cliff," and that the firm has leaned on technology to fill the gap. Despite these constraints, she said 2021 has been one of the firm's busiest years for new client inquiries.
Mary Pang, head of the Global Private Client Practice at Cambridge Associates, told the news service that the firm has built investment work for Asia-based clients over the past decade and sees a much larger opportunity to expand. She said Asian families are increasingly seeking to learn from family office governance models in other countries, adding that the firm receives many requests to understand governance, as control has traditionally been central to family wealth management in the region. Pang noted that second-generation family members, many educated in the West, are returning to run operating businesses and are moving to professionalize wealth structures.
Citing figures from the Campden/UBS Global Family Office Report, the article notes that of approximately 7,300 single family offices globally, about 1,300 are in Asia, with that number rising more than 40% since 2017. Pang herself relocated from San Francisco to Singapore, which she cited as reflecting the region's importance to the firm.
On private markets, Pang said Cambridge Associates sees value for long-term family portfolios in considering an allocation of up to 40% to private investments such as venture capital and private equity, as described in a firm paper on the topic. She cautioned that families vary in their comfort with the longer lock-up periods and their need for liquidity, and said the allocation is most suitable for families focused on the long term that can move quickly on allocations.
Cambridge Associates generally works with family offices with a minimum net worth of around $150 million. The firm maintains a research team that conducts due diligence on thousands of managers and says its relationships with general partners are a significant source of referrals. Pang said the firm provides ideas rather than prescriptive direction on how families should run their offices.
Pang acknowledged that pandemic-related travel restrictions have limited the firm's ability to conduct onsite manager visits and meet clients in person, which she said had "fallen off a cliff," and that the firm has leaned on technology to fill the gap. Despite these constraints, she said 2021 has been one of the firm's busiest years for new client inquiries.
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