Key Takeaways
- • McKinsey estimates an intergenerational wealth transfer of $5.8 trillion from UHNW and HNW families in Asia–Pacific between 2023 and 2030, with UHNW families accounting for about 60 percent of the total.
- • The number of single-family offices in Hong Kong and Singapore has quadrupled since 2020 to about 4,000 across both jurisdictions, and the two cities together host roughly 15 percent of the world's single-family offices.
- • Hong Kong and Singapore each managed roughly $1.3 trillion in offshore assets in 2023, trailing only Switzerland's $2.5 trillion total.
- • McKinsey analysis indicates single-family offices in the region need at least $100 million in AUM to be viable, pushing consolidation and the formation of multi-family office structures.
- • Banks, insurers, MFOs, asset managers, and WealthTechs all see an opening to serve family offices, with governance, rising operating costs, and access to alternatives identified as key unmet needs.
Summary
According to McKinsey & Company, ultra-high-net-worth (UHNW) and high-net-worth (HNW) families in the Asia–Pacific region are expected to undergo an intergenerational wealth transfer estimated at $5.8 trillion between 2023 and 2030. UHNW families are projected to account for about 60 percent of that total, and many are establishing family offices to manage the process. The number of single-family offices in Hong Kong and Singapore, the region's principal family office hubs, has quadrupled since 2020 to roughly 4,000 across both jurisdictions.
McKinsey attributes the hubs' appeal to government incentives, including tax benefits and clear regulation, as well as mature financial ecosystems, residency pathways for qualifying investors, and access to talent. In 2023, Hong Kong and Singapore each managed about $1.3 trillion in offshore assets, second only to Switzerland's $2.5 trillion. Most inbound wealth currently originates within Asia–Pacific, led by mainland China, India, and Indonesia. McKinsey expects greater flows from Europe and North America as global investors treat the region as a third safe haven for diversification.
The report identifies four single-family office archetypes: visionary entrepreneur offices, which pursue high-risk direct investments in start-ups; traditional business owner offices, which favor low-risk strategies and rely on banks and MFOs; embedded offices, which are integrated into an operating business and make passive direct investments; and professionalized offices, which have in-house chief investment officers, the highest AUM, and targets of roughly 5 to 6 percent for conservative strategies or about 15 percent for growth. McKinsey says single-family offices in the region require at least $100 million in AUM to be viable given costs and an average risk-adjusted ROI of 5 percent, and expects consolidation among smaller offices, some of which may form MFO structures. Personnel costs typically represent 45 to 65 percent of operating expenses for single-family offices with $15 million to $500 million in AUM.
Banks and MFOs have served the segment most actively, but insurers are building teams focused on estate planning, asset managers are receiving direct mandates for traditional and alternative investments, and WealthTechs are gaining traction. Chew Mun Yew, head of private wealth at UOB, argues that providers need advisory-led service, efficient technology platforms, integrated business solutions, and regional connectivity. The report also highlights weak governance as a common challenge, with Lee Wong of Lombard Odier and Chi-man Kwan of Raffles Family Office emphasizing formal structures and family constitutions.
McKinsey attributes the hubs' appeal to government incentives, including tax benefits and clear regulation, as well as mature financial ecosystems, residency pathways for qualifying investors, and access to talent. In 2023, Hong Kong and Singapore each managed about $1.3 trillion in offshore assets, second only to Switzerland's $2.5 trillion. Most inbound wealth currently originates within Asia–Pacific, led by mainland China, India, and Indonesia. McKinsey expects greater flows from Europe and North America as global investors treat the region as a third safe haven for diversification.
The report identifies four single-family office archetypes: visionary entrepreneur offices, which pursue high-risk direct investments in start-ups; traditional business owner offices, which favor low-risk strategies and rely on banks and MFOs; embedded offices, which are integrated into an operating business and make passive direct investments; and professionalized offices, which have in-house chief investment officers, the highest AUM, and targets of roughly 5 to 6 percent for conservative strategies or about 15 percent for growth. McKinsey says single-family offices in the region require at least $100 million in AUM to be viable given costs and an average risk-adjusted ROI of 5 percent, and expects consolidation among smaller offices, some of which may form MFO structures. Personnel costs typically represent 45 to 65 percent of operating expenses for single-family offices with $15 million to $500 million in AUM.
Banks and MFOs have served the segment most actively, but insurers are building teams focused on estate planning, asset managers are receiving direct mandates for traditional and alternative investments, and WealthTechs are gaining traction. Chew Mun Yew, head of private wealth at UOB, argues that providers need advisory-led service, efficient technology platforms, integrated business solutions, and regional connectivity. The report also highlights weak governance as a common challenge, with Lee Wong of Lombard Odier and Chi-man Kwan of Raffles Family Office emphasizing formal structures and family constitutions.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.