Key Takeaways
- • Citi estimates there are over 8,000 single-family offices worldwide, typically serving families with more than $500 million in assets, and Citi itself works with 1,800 family offices with an average net worth of $2.4 billion.
- • Deloitte estimates global family office assets under management at $3.1 trillion, expected to reach $5.4 trillion by 2030.
- • Citi's 2024 Global Family Office Survey found 80% of respondents have either invested in AI or want to, with access via private and public markets.
- • Large family offices allocate roughly 40% to 55% to illiquid assets (private equity, private credit, direct real estate), versus about 25% for a typical private investor.
- • Citi reports 70% of families with family offices are active across more than one continent, driving diversification and location planning frameworks.
Summary
Family offices, established by wealthy families to manage investments, accounting, tax, philanthropy and lifestyle services, have grown into significant market participants. According to Citi, there are more than 8,000 single-family offices worldwide, typically serving families with assets above $500 million. Citi works with 1,800 family offices with an average net worth of $2.4 billion, though the average office has fewer than seven employees and outsources many services. Deloitte estimates family offices globally manage $3.1 trillion, a figure it expects to rise to $5.4 trillion by 2030.
Geopolitical considerations are shaping how these families operate. Citi data shows 70% of family-office families are active on more than one continent, holding passports, investment assets, operating companies or family members across regions. Citi Private Bank's 2024 whitepaper, Asset Location and Global Mobility, proposes a framework for evaluating locations based on four pillars: lifestyle, tax, stability and predictability of the political and legal system, and resources such as talent and infrastructure.
On artificial intelligence, Citi's 2024 Global Family Office Survey found 80% of respondents have invested in AI or intend to. Family offices access the theme through private and public markets, spanning the full AI lifecycle and ecosystem. Citi says clients are also discussing related themes including energy (nuclear, alternatives and fossil fuels), deep tech, fintech, education and healthcare.
Family offices differ from other investors in their multigenerational horizon. Large offices with more than $500 million in assets carry higher allocations to alternatives and illiquid assets, functioning similarly to sovereign wealth funds or university endowments. Citi reports that the average family office it works with holds 40% to 55% in illiquid assets, compared with about 25% for a typical private investor. Citi notes that alternatives have driven returns over the past 20 years and that several AI-linked themes are accessible mainly in private markets.
Citi also highlights a shift in philanthropy toward effectiveness and measurable impact, particularly among younger, more impact-oriented family members.
Geopolitical considerations are shaping how these families operate. Citi data shows 70% of family-office families are active on more than one continent, holding passports, investment assets, operating companies or family members across regions. Citi Private Bank's 2024 whitepaper, Asset Location and Global Mobility, proposes a framework for evaluating locations based on four pillars: lifestyle, tax, stability and predictability of the political and legal system, and resources such as talent and infrastructure.
On artificial intelligence, Citi's 2024 Global Family Office Survey found 80% of respondents have invested in AI or intend to. Family offices access the theme through private and public markets, spanning the full AI lifecycle and ecosystem. Citi says clients are also discussing related themes including energy (nuclear, alternatives and fossil fuels), deep tech, fintech, education and healthcare.
Family offices differ from other investors in their multigenerational horizon. Large offices with more than $500 million in assets carry higher allocations to alternatives and illiquid assets, functioning similarly to sovereign wealth funds or university endowments. Citi reports that the average family office it works with holds 40% to 55% in illiquid assets, compared with about 25% for a typical private investor. Citi notes that alternatives have driven returns over the past 20 years and that several AI-linked themes are accessible mainly in private markets.
Citi also highlights a shift in philanthropy toward effectiveness and measurable impact, particularly among younger, more impact-oriented family members.
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