Where to find your Family Office

Although often located in the city where they generate wealth, family offices are increasingly set up in other, more strategically chosen locations. In fact, according to our 2023 Global Family Office Compensation Benchmark Report, which we created in collaboration with KPMG Private Enterprise, we found that more than 30% of family offices now operate from multiple locations.

Choosing the right city is crucial for optimizing wealth management and accessing a network of financial services and investment opportunities. Across the globe, four cities stand out as ideal destinations: London, New York, Singapore and Dubai. This article looks at the unique benefits and appeal that meet the needs of ultra high net worth (UHNW) families and what makes them favorable destinations for family offices.

London

This global financial powerhouse has a rich history in banking and finance, providing access to various investment opportunities. Families will also benefit from being close to leading asset managers and investment banks. In addition, London has an established legal and regulatory framework and proximity to Europe, making it ideal for long-term stability. In addition, the city offers a high standard of living, excellent educational institutions and a diverse range of leisure activities, making it a desirable place for families.

London has cultivated a vast and readily available pool of top talent across all disciplines, particularly investment management, which is highly sought after in the family office world. London’s attractiveness as a financial center has also resulted in a diverse and multicultural workforce, bringing a wealth of perspective and expertise to the table. This has positioned London as the preferred location for family offices looking to build a strong investment team. However, it is important to note that the challenging immigration policies of the United Kingdom (UK) can present difficulties in moving talent overseas. This is particularly relevant for existing overseas family offices looking to expand to the UK and relocate their talent.

New York City

There’s a reason our 2023 report showed New York has the most family offices in the US. Synonymous with finance and commerce, New York is home to Wall Street, the world’s financial center, offering unparalleled access to financial markets, investment opportunities and leading financial institutions. In addition, the city’s dynamic business environment is supported by a comprehensive regulatory framework that encourages innovation and growth.

New York City is undoubtedly the epicenter of global finance, attracting top professionals from around the world. Like London, the city’s status as a world financial capital has cultivated a deep pool of highly skilled professionals in investment management, wealth management and many other disciplines. A diverse workforce also brings a global perspective to investment strategies. This gives family offices an unparalleled opportunity to recruit top professionals, fostering team growth and exceptional performance. However, the complexities associated with the immigration system can create barriers to recruiting talent abroad, which could limit the local talent pool available to family offices.

Beyond finances, New York is a cultural powerhouse, offering world-class museums, theaters and dining experiences. The city’s educational institutions, including Ivy League universities, attract top talent and provide excellent educational opportunities for family members.

Singapore

In recent years, Singapore has become home to the most family offices in Asia, making it a hub for the region.

The Garden City is known for its extensive family office ecosystem and favorable tax incentives, making it an attractive gateway to access high-growth opportunities in Asian economies.

In addition, the Monetary Authority of Singapore (MAS) provides a strong regulatory framework, ensuring stability and protection. In addition, the city offers excellent infrastructure with world-class transportation and a focus on family-friendly living with top-notch schools and a safe environment.

Singapore’s talent market is characterized by a strong focus on education and a skilled workforce. While the competition for top talent can be intense, the city still offers a very favorable environment for family offices. Its proximity to major Asian financial centers such as Hong Kong and Beijing also positions Singapore as a strategic location to attract top talent from across the region.

On the other hand, recruitment challenges persist. Although there are immigration schemes to support the recruitment of senior talent from abroad, the local market lacks skilled and experienced mid to senior family office talent. In addition, it is worth noting that immigration policies are not conducive to hiring mid-level professionals from abroad.

Dubai

The fast-growing financial center of the Middle East, Dubai is strategically located at the intersection of Asia, Africa and Europe, allowing investment to diversify across continents.

Its favorable tax regime, together with a robust legal framework, make it an attractive destination, enhanced by regulations such as the DIFC’s Family Arrangements Regulations, which are highly favorable to family offices.

In addition, Dubai is no stranger to the ultra-rich world. Known for its modern infrastructure, luxurious lifestyle, high standard of living and cosmopolitan environment, the city is home to many ultra high net worth individuals and families.

The family office sector in the region is still in its infancy, leading to a lack of local professionals with relevant experience. This undoubtedly presents significant recruitment challenges. That said, while Dubai’s talent pool is still nascent compared to other established financial hubs, the city’s focus on attracting international talent is paying off. Offering competitive compensation packages and favorable immigration schemes, Dubai successfully attracts top talent from around the world, making it a favorable destination for family offices looking to recruit top talent to the region.

A family office’s location decision is complex, influenced by a multitude of factors, including access to financial markets, the talent pool, the regulatory environment and lifestyle preferences. While London, New York, Singapore and Dubai each offer unique advantages, the optimal location ultimately depends on the specific needs and goals of the UHNW family. Careful consideration of these factors, along with expert guidance, is essential in selecting the ideal foundation for a family office that can effectively manage and grow wealth over generations.