Family offices in Africa are expecting strong growth in the value of their assets over the next five years, building on expansion in the past five years, new research from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows (please see the attached press release).
Nearly two out of three (65%) family office executives predict dramatic growth over the next five years, with a further 30% expecting slight growth. In the past five years, 86% say their family office has seen growth in the level of assets, although only 9% reported dramatic growth.
Ocorian’s study among family office professionals working in Nigeria, South Africa, Ethiopia, Kenya and Tunisia, collectively responsible for around $18.625 billion in assets under management, found the growing success of family offices is helping boost their philanthropy.
All family office executives questioned expect the level of philanthropy to increase over the next two years, with more than six out of 10 (61%) predicting an increase of 15% or more. Around 70% say donations to diversity, equity and inclusion giving will increase, while 65% say more will be given to healthcare and medical research. Nearly half (49%) say access to clean water and sanitation will be a focus.
Up to 91% say the investment risk appetite of their family office will increase over the year ahead, with 67% attributing that to greater regulation around riskier and more specialist asset classes. All questioned agree that increasing investment in alternative asset classes is a growing trend, with 40% strongly agreeing.
There is also a growing trend for family offices to invest in private companies where the family has an interest in or background, with 93% agreeing that it is driving investment decisions. The next generation of families also has a growing influence on investment decisions at the family office, according to 86% of questions.
