Ultra high net worth individuals in the US are more likely to be attracted to multi-family offices than traditional wealth managers, according to new research.
US-based consultancy Cerulli Associates estimates traditional wealth managers have lost up to 3% of their share of UHNW clients to multi-family offices in the past few years.
According to the research, the top multi-family office in the US is Bessemer Trust, a New York-based office with approximately $48.3 billion of assets under management.
Rockefeller & Co, with $29.3 billion of assets under management, came in second and US Trust Multi-Family Office and Northern Trust Wealth Management take the joint third spot with $28 billion assets under management. All figures are from the end of 2006.
Cerulli also suggested that multi-family offices were outsourcing services with alternative investments being the most common service being outsourced. The consultancy says this could provide opportunities for asset managers and advisors.