Rich Families’ Wealth to Grow to $9.5 Trillion by 2030

It’s true: The rich really are getting richer.

Assets under management at family offices are expected to rise 73% to $5.4 trillion globally by 2030, according to a new Deloitte report. That’s in line with the wealth of ultra-rich families with their own investment offices, which is expected to top $9.5 trillion over the same time frame, a 189% increase from 2019. 

“The rapid rise in private wealth around the world is spurring demand for family office structures,” said Deloitte family office leader Christina Staples. The number of family offices is expected to grow from 8,030 single-family offices today to more than 10,720 in the next five years. 

“Affluent families want the ability to customize their family and wealth management services to match their unique needs, and family offices can cater to this by offering a range of bespoke services around tax and wealth planning, risk and investment management, family education, governance, and more,” Staples told The Daily Upside.

Moving On Up

The growth in family offices is a result of rising wealth concentration, the Great $84 Trillion Wealth Transfer, and fairly healthy markets for private equity and mergers and acquisitions, according to the report. And simply put, there are just more rich people in the world:

• UBS’ latest global wealth report found that by 2023 there were around 22 million people in America worth more than seven figures. The US alone accounted for 38% of all millionaires in the world.
• By 2028, the country’s number of millionaires is expected to grow by another 3.5 million, a 16% increase.
• The influx of new money around the world is changing the face of wealth, Deloitte said, with 41% of offices servicing first-generation families, those who originally created the wealth. 

Driver’s Seat: Women are set to inherit some $9 trillion over the next 20 to 25 years, and they are also taking on more leadership roles at family offices in the process. Women currently serve as the principals of 15% of family offices worldwide, Deloitte reported. Those figures are highest in Oceania and Africa, where women serve as principals for 22% and 21% of family offices, respectfully. They were the lowest in North America at 12% and the Middle East at 10%.