“Only 30 percent of generational transfers are successful, so this is an existential issue. What we are seeing is recognition of the challenges associated with wealth transfer, and a growing understanding of the actions that need to be taken,” Ferrari says.

Wealthy families may be feeling more generous right now because the overall return on portfolios has jumped to 7 percent this year after being a meager 0.3 percent last year globally, says UBS. The recovery was driven by equities and private equity, which in turn were counterbalanced by the more subdued performance of real estate and hedge funds.

Equities make up 20 percent of family office portfolios; private equity represents 20 percent. This share looks like it will grow further, as most family offices plan to maintain or increase their investments into developing market equities and intend to allocate more into private equity funds and co-investments, respectively.
 

 

 

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