Family Offices Planning to Boost Outsourcing of Core Services

• Illiquid investments and personal finances are the services most likely to be outsourced currently
• Family offices expect third party service providers to increasingly offer access to a globalised network

Family offices are planning to boost outsourcing of core services as they look to benefit from professional expertise and improve services, 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.

The study with family office professionals including those working for multi-family offices shows currently advice on illiquid investments and personal finances are the services most likely to be outsourced to third parties but use of third parties will increase across the board over the next three years. Around 62% currently outsource for advice on illiquid investments and 59% receive support with personal finances for family members.

The main growth areas over the next three years across a range of services include illiquid investments where 44% expect dramatic increases in outsourcing while 41% predict dramatic increases in outsourcing for assets of passion and 40% for extended family services such as concierge.

The key reasons driving increased use of third parties is the value of professional expertise and advice for the family office and a focus on improving service levels, according to Ocorian’s international study among more than 300 family office professionals collectively responsible for around $155 billion assets under management.

Family offices expect third party providers to evolve in response to the growing demand for their services – 70% say they expect third party providers to be able to provide access to an increasingly globalised network of administration centres while 60% expect to see more skills from providers such as being able to advise on digital assets.

The table below shows current use of outsourcing for a range of services and how many expect increases in the use of outsourcing over the next three years.

Annerien Hurter, Global Head of Private Client at Ocorian, commented: “Family offices clearly value third party support and advice with high levels of outsourcing across a range of services. That is set to increase over the next three years according to the research as family offices look for more support.

"What’s clear from other segments of our research in tandem with our experience is that family offices are increasingly adopting institutional-level governance and investment strategies, with a strong focus on professionalisation and diversification. By outsourcing complex areas like private equity to outsourced chief investment officers, they can maintain control over liquid assets while navigating the challenges of illiquidity.

“As these offices become more sophisticated, the trend is clearly moving toward outsourcing more investment functions to access top talent and ensure greater efficiency.

“It's essential for advisors and service providers alike to deeply understand the unique risk appetite and governance needs of each family, ensuring transparency and trust in every decision. The key to success for third party providers will be being able to offer a seamless global service."

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.

ENDS

Notes to editors

Please note that this press release 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 July 2024 Ocorian commissioned independent research company PureProfile to interview 309 family office investment managers working for family offices which use third-party private client services providers to support in the preservation and protection of their clients’ wealth. The investment managers interviewed are collectively responsible for assets under management of around $155 billion and include 201 working for multi-family offices. The global study interviewed family offices in Bahrain, Bermuda, Canada, France, Hong Kong, Nigeria, Saudi Arabia, Singapore, South Africa, United Arab Emirates, the UK, US, Cayman Islands, Egypt, Ethiopia, Germany, Ireland, Italy, Kenya, Spain, Sweden, Switzerland, Tunisia, Jersey and Guernsey

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About Ocorian

Ocorian is a global leader in corporate and fiduciary services, fund administration and capital markets.

Supporting and protecting global investment is Ocorian’s priority; it manages over 17,000 structures on behalf of 8,000+ clients including financial institutions, large-scale international organisations, and high-net-worth individuals.

Ocorian provides fully compliant, tailored solutions that are individual to clients’ needs, no matter where in the world they hold financial interests, or however they are structured.

The group offers a full suite of corporate, fund and private client services across a network of offices spanning all the world’s financial hubs. Locations include Bermuda, BVI, Cayman, Denmark, Guernsey, Finland, Hong Kong, Ireland, Isle of Man, Jersey, Luxembourg, Mauritius, Netherlands, Norway, Singapore, Sweden, UAE, the UK, and the US, and employs over 1,500 professionals.

To find out more about Ocorian and its services, including regulatory information, visit www.ocorian.com