GROWING INVESTMENT SOPHISTICATION AT FAMILY OFFICES DRIVES RISK APPETITE

• Global study shows 76% say family offices are doing more sophisticated deals with two out of three saying risk appetite will increase over next 12 months
• But just one in six believe they are in a very strong position to meet regulatory demands

Growing investment sophistication is helping to drive a rise in risk appetite at family offices and an increased focus on alternative assets, new global research* from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows.

More than three out of four (76%) questioned believe increasing sophistication at family offices is leading to more staff carrying out more sophisticated deals and having to strengthen their operational infrastructure.

That is contributing to an increased risk appetite – around 66% questioned say their organisation’s risk appetite will increase in the next 12 months, Ocorian’s study among family members, senior family office employees and intermediaries working for family offices with total wealth of $68.26 billion found. Just 7% believe their organisation’s risk appetite will decrease while 27% say it will stay the same. European equities, emerging market equities and private equity are the most popular asset classes that family office fund managers expect to increase allocations to in the next 12 months.

There is a growing appetite for increasing family office exposure to alternative assets – all of those questioned agreed it is a long-term trend – with 65% saying the UK is leading the way on exposure to alternatives based on where assets or where family offices are based. More than half (54%) point to the Middle East while 48% highlight the European Union. Around a third (31%) say Africa but only 24% the Americas.

The study in 13 countries or territories including the UK, UAE, Singapore, Switzerland, Hong Kong, South Africa, Saudi Arabia, Mauritius and Bahrain found increased regulation around riskier and more specialist asset classes is the main reason for increased risk appetites ahead of any investment views.

Around three quarters (73%) pointed to improved regulation while 60% point to increased transparency. Just half (53%) say they believe markets are ready to recover while 39% say family offices have been in cash too long.

There is however a need for regulatory support – just one in six (16%) questioned believe they are in a strong position to meet regulatory demands amid rising complexity while 56% say they are in quite a strong position. More than a quarter (27%) believe their ability to meet regulatory requirements is average.

That transformation is visible in markets such as Singapore, where tax incentive schemes for single family offices under Sections 13O and 13U of the Income Tax Act require the employment of at least two or three investment professionals to qualify. These conditions encourage family offices to expand their teams, deepen investment expertise, and strengthen operational infrastructure in line with their increasingly sophisticated strategies.

Andrew Ho, Regional Head, Private Clients, APAC, at Ocorian said: ““Family offices have significantly strengthened their operations recently, recruiting more staff and improving infrastructure as they become more sophisticated organisations carrying out more complex trades. 

“In Singapore, this trend is reinforced by the government’s tax incentive schemes for single family offices, which require the employment of at least two or three investment professionals as part of qualifying for the incentives. These policies not only encourage greater professionalisation but also ensure that family offices have the in-house expertise to manage increasingly sophisticated investments.

“Improvements in regulation around riskier assets are a key factor in this transformation, but at the same time, family offices appreciate they need more regulatory support if they are to make the most of the potential opportunities.”

Asset class	How many family office fund managers expect to increase allocations in next 12 months?	How many family office fund managers expect allocations to stay the same in next 12 months?	How many family office fund managers expect to decreased allocations in next 12 months?	How many don’t know?
European equities	93%	7%	Zero	Zero
Emerging market equities	89%	11%	Zero	Zero
Private equity	78%	22%	Zero	Zero
Investment grade fixed income	78%	20%	1%	1%
Real estate	77%	20%	3%	Zero
UK equities	76%	22%	1%	1%
Private debt	75%	20%	5%	Zero
Infrastructure	63%	29%	7%	1%
Hedge funds	61%	34%	4%	1%
US equities	48%	42%	7%	3%
Non-investment grade fixed income	35%	40%	13%	12%
Other alternative asset funds	19%	49%	15%	17%

Ocorian’s award winning dedicated family office team provides a seamless and holistic approach to the challenges and opportunities families face. Its service is built on long-term personal relationships that are founded on a deep understanding of what matters to family office clients. Its global presence means Ocorian can provide bespoke structures and services for international families no matter where they live.

Key services include formation and administration of family offices, HR support services, support with lifestyle and luxury assets, family governance, resident and relocation services and specialist support with immigration, visas, payroll, marine and aircraft crew management and financial reporting.

ENDS

Note:

Please note that the above is intended to provide a very general overview of the matters to which it relates and is provided for your convenience. It is not intended as legal or investment advice and should not be relied on as such.

* In June 2025  Ocorian commissioned independent research company PureProfile to interview 200 people in the family office sector including family members, full-time employees of family offices and specialist intermediaries such as lawyers, wealth managers, private bankers and tax advisers working for family offices of UHNW family businesses. The total value of wealth managed or owned by the families was $68.26 billion and respondents were based in the UK, UAE, Singapore, Switzerland, Hong Kong, South Africa, Saudi Arabia, Mauritius, Bahrain, Bermuda, Cayman, British Virgin Islands and Jersey,

 About Ocorian

Ocorian is a global leader in fund services, corporate and trust services, capital markets, and regulatory and compliance support. Ocorian has more than 30 years of experience in fund administration, accounting, investor services and regulated AIFM and depositary solutions and supports managers across all major asset classes of private markets such as private equity, real estate, infrastructure, debt and venture capital. Ocorian manages over 17,000 structures on behalf of 8,000+ clients, including financial institutions, large-scale international organisations, and high-net-worth individuals. To find out more, please visit www.ocorian.com.