What does a family office look like in the US?

s observations in the field of family offices, we have found that family offices in the U.S. are often more institutionalized and professionalized. They often have larger teams and internal management functions than other family offices globally.

In addition, we found that only 10% of CEOs of US family offices are family members, the lowest rate globally. The high participation rate of professionals with no family ties further validates the level of professionalism in the region. According to the survey, 74% of professionals in US family offices are male, and the proportion of male CEOs is slightly higher at 87%. This is better than other regions in terms of gender diversity, but we believe there is still room''Family offices in the U.S.

We find that maturity and level of professionalism are also well reflected in the compensation of the region's family office executives. As we mentioned in a Forbes article, we found that compensation in U.S. family offices is at the top of the list compared to other regions. It is comparable to large investment firms and sometimes even higher. Of particular note, heads of investment departments at U.S. family offices are the highest paid and typically receive more than $1 million in base salary. While heads of investment departments in the UK typically receive between £198,000 and £264,000 ($252,000 to $337,000), and most''Heads of investment departments in Europe earn between €158,000 and €198,000 ($172,000 and $216,000).

Investment preferences

The UBS Global Family Office Report 2023 shows that U.S. family offices have the highest allocation to alternative asset classes such as private equity (24%), real estate (21%) and hedge funds (10%). Interestingly, the allocation to real estate is particularly higher than the global average of 13%.

According to the North American Family Office Report 2022, 81% of U.S. family offices identified investment risk as the biggest risk factor for their family offices.

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Clearly, U.S. family offices are utilizing alternative assets to diversify their portfolios and reduce risk,''related to public markets.

It should also be noted that 37% of U.S. family offices are currently engaged in sustainable investments, which is still significantly lower than their counterparts in Europe (66%) and Asia Pacific (42%). Given the growing debate around sustainable and socially conscious investments in the family office sector, this number is expected to continue to grow in the coming years.

Philanthropic initiatives

Philanthropy plays an important role in U.S. family offices. The North American Family Office Report 2022 indicates that 75% of U.S. family offices provide services related to philanthropy.

According to the data, 86% of U.S. families give to philanthropy, which is above the global average''world is a foundation that makes grants in education, health and population. It manages $69 billion in assets and is considered the second largest philanthropic foundation in the world as of 2020, behind only the Danish Novo Nordisk Foundation.

Regulatory impact

With the increasing institutionalization of family offices in the U.S., they are increasingly subject to regulatory scrutiny. This means they need to comply with appropriate financial and securities regulations, depending on the structure and services offered. We recently looked at the impact of the Corporate Transparency Act on U.S. family offices. We strongly recommend that principals who plan to establish or expand''s U.S. family offices, familiarize themselves with the regulatory system and hire in-house legal counsel and compliance professionals to assist family offices in their operations in the region.