The 2022 Family Office Round-Up

While many of us were able to finally enjoy a year free of coronavirus restrictions, news broke of a conflict in Eastern Europe at the beginning of the year and what followed was a trail of political instability, economic weakness and inflationary concern. Three things that are still plaguing Family Office decisions today.

As the impact of Biden’s leadership, Brexit and former lockdowns also began to fruition, world leaders clung to Family Offices as the pinnacle of recovery. Family Offices proved themselves to be the single most fluid group of investors, serving as the backbone of the global economy post-pandemic and supporting the causes that mattered most.

As a result, Greece, the UAE
and Hong Kong joined a long list of nations in rolling out a red carpet to Family Offices with an array of tax incentives to match. Ultimately however the top spot sat with Singapore which overtook London and New York as the Family Office destination of choice.

Russian Family Offices lost 27% of their wealth due to the ongoing war in Ukraine and as a result, many found new homes within the likes of Dubai and Israel while in the UK, a flurry of Prime Ministers meant inflation reached over 10% for the second time. The nation also experienced the sharpest annual rise in food prices for more than 40 years.

It wasn’t all doom and gloom of course. We witnessed huge successes in the Family Office arena.

For instance, the Former Managing Director of Athos Service GmbH, the Family Office behind the world’s first COVID-vaccine, was able to generate so much wealth he set up his own Family Office. It offered the world of wealthy families a lesson in long-term incentive plans while Family Office CEO compensation jumped by more than 100%.

A billionaire founder also called Capitalism into question by giving away his entire company to make positive change while a record-number of billionaires were crowned. New York fell short once more as Beijing took the crown as Billionaire Capital.

The community also made every downfall an educational experience.

The Queen’s death offered a masterclass in succession planning while the return of Archegos-related headlines fueled Family Offices to strengthen their internal compliance policies. As a candidate-driven market also historically altered unemployment figures, Family Offices pledged a focus on retaining their critical employees in any way they could while Hong Kong’s demise as a Family Office destination of choice kick-started a global campaign to attract Family Offices.

While the political instability, economic weakness and inflationary concerns I opened with are still very much alive and well, Family Offices continue to translate these concerns into opportunities with new asset classes, new partnerships and a renewed focus on professionalizing their wealth and being better for the next generation. I expect this will continue long into 2023.

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