S-E Asia's super rich bank on family offices to manage wealth

These offices make up a third of the region’s investors as at June, up from a fifth in 2020

- Angela Tan

Family offices are emerging as a significant force among investors in South-east Asia, fuelled by the region's strong economy and a growing number joining the ranks of the super rich.

Family offices set up by the wealthy make up a third of the region's investors in June 2024, compared with a fifth in 2020, Preqin data showed.

The provider of alternative markets data said Singapore and Hong Kong play host to almost half of them.

The two cities have different fund structures to attract more wealth, competing with traditional offshore centres like the British Virgin Islands, Mauritius and the Cayman Islands.

Singapore established the variable capital company, a flexible corporate structure designed for investment funds. It has been popular with family offices as it offers various advantages from cost efficiencies to tax incentives.

Hong Kong offers an open-ended fund company structure which allows investment funds to be established in a corporate form.

Both structures are designed to facilitate investment management and provide flexibility for family offices, but they have distinct features and regulatory requirements.