2023重点关注家族理财办公室（英）

FamilyOfficeStudy2023

CoverAhmetKUSAKOG/iStock

Currentchallenges,investmenttrendsandthegrowingimportanceofESGcriteria

January2024

2 FamilyOfficeStudy2023

Inanutshell...

Executivesummary

Familyofficesarebecomingkeyplayersinthefinancialworld.Theyareincreasinglyinvolvedincapitalmarkettransactions-andthetrendisrising.Atthesametime,theyfacenumerousinternalandexternalchallenges.Inthewakeoftwopandemicyears,yetmoreupheavalhasbeendeliveredintheformofglobalsupplychainissuesandtheenergycrisis.Andthecurrentmarketenvironmentwithitshighinflation,risinginterestratesandrecessionarydevelopmentsaresignificantlyaddingtothepressure.

Giventhesechallengingcircumstances,familyofficesaretakingtheopportunitytoreadjusttheirassetallocation.Realestateandstocksaretheirmainfocus,andprivateequityisalsogrowinginrelevance.Currenttargetsectorsfortheirinvestmentsaremedicine&healthcareaswellasIT&digitalbusinessmodels.FamilyofficesarealsoplacinggreaterfocusonESGcriteriaintheirdecisionmakingandareincreasingtheirlevelofengagementthroughimpactinvesting.Besidescybersecurity,digitalization,processprofessionalizationandtheshortageofworkforce,otherinternalchallengesincludetheneedtoestablishappropriatestructuresfortransferringthebusinesstothenextgenerationofthefamily.

ThesearethekeyfindingsofthelatestFamilyOfficeStudybyRolandBergerandWHUbasedontheviewsoffamilyofficesandmarketexpertsinOctober2023.

3 FamilyOfficeStudy2023

FamilyofficeshavemorechallengestoaddressCurrentchallenges

Theworldhasseentheriseofmultiplechallengesinrecentyearsandtheirimpactisbringingevergreaterpressuretobearonorganizationsacrosstheeconomy,includingfamilyoffices.Foraround86 %offamily

Keychallengesforfamilyofficesbyrelevance(multipleresponsespossible)

offices,risinginterestratesandthehigherprojectandfinancingcoststheybringcurrentlyrepresentthebiggestchallenge(2022:82 %).Whiletheenergyandrawmaterialscrisiswasstilltopoftheagendalastyear(2022:89 %),only47 %ofrespondentscurrentlyconsiderthisamajorchallenge.Thatisbecausemanyhavegrownaccustomedtoitandhaveadaptedaccordingly.

Thesameappliestogeopoliticalupheavals:Theirimportanceisdownsomewhatsincethe2022study.Buttheydoremainanimportantissuefor72 %(2022:83 %)duetoongoinguncertaintiesaroundtheultimateoutcomeandhowlongthedisruptionmightlast.Theeconomyrepresentsafurtherchallengefor70 %offamilyoffices,withgrowingsignsofaprolongedrecessionlooming.Familyofficeswillthereforeneedtopayincreasedattentiontowhichinvestmentscanbeconsideredattractiveevenduringarecession.

Althoughdevelopmentslikeadvancingdigitalization(50 %;2022:47 %)andclimatechange(42 %;2022:41 %)havegainedimportance,familyofficesarecurrentlyfocusingonoptimizingtheirassetallocationtoenablethemtocopewiththebiggestchallengesandminimizetherisks,whileatthesametimeexploitingtheopportunitiestheypresent.Only9 %(2022:27 %)viewtheimpactofthepandemicasasignificantorverysignificantchallenge.Otherpoliticalinfluencesarenow

Risinginterestrates

Geopolitical

upheavals

Recession

Digitalization

Energyandrawmaterialscrisis

Climatechange

Otherpoliticalinfluences

COVID-19

Challengesconsideredsignificantorverysignificant

6 %

8 %

61 %

25 %

14 %

14 %

50 %

22 %

6 %

25 %

56 %

14 %

8 %

42%

42 %

8 %

17 %

36 %

39 %

8 %

3 %

25 %

31 %

36 %

6 %

14 %

64 %

14 %

8 %

50 %

39 %

3 %

3 %6 %

seenaslessofachallengeaswell(22 %).

Veryinsignificant

Insignificant

Neutral

Significant

Verysignificant

Source:RolandBerger

4 FamilyOfficeStudy2023

Readjustingassetallocationisthefocus

Relevantassetclassesforfamilyoffices

Thelowinterestrateenvironmentofrecentyearsmeantthatfamilyofficespredominantlykepttheirassetallocationstable.Thisisnowchangingforthemajorityofrespondents:almostallofthemwanttorealigntheirassetallocationsandadaptthemtothe

Familyoffices'activitiesandreadjustmentplansinthedifferentassetclasses

Shareoffamily

officesfor

whichthe

topicis

relevant

currentsituation.Realestateisgrowinginimportanceforfamilyoffices(92 %;2022:88 %),astheirstrongequitybaseoffersattractiveinvestmentopportunitiesgiventhehighinterestrates.

Alsogainingrelevancearestocks(92 %;2022:89 %)and,aboveall,privateequity(PE)investments.Fully89 %ofrespondentsarealreadydirectlyinvestedincompanies,while86 %havemadePEinvestmentsviafunds.Lookingforward,60 %(2022:49 %)plantochannelmoreoftheircapitalintodirectinvestmentsthroughprivateequity.PEinvestmentshavetheadvantageofenablingthefamilyofficetoactivelyinfluencethetarget,offeringafurtherbusinessdimension.

In2022,onlyaround40 %offamilyofficesincreasedtheirleveloffixed-incomeinvestments.Withtheriseininterestrates,60 %arecurrentlyplanningtoinvestmoreinbondsorotherfixed-incomesecurities.Preciousmetalssuchasgoldarealsobecomingincreasinglypopular(78 %;2022:70 %).Theadvantageoftheseisthattheycanofferstabilityeveninvolatilemarketsandareconsideredaneffectivewaytohedgeagainstinflation.Ontheotherhand,funds(78 %)andventurecapitalinvestments(75 %)arebecominglessimportant(2022:each82 %).Only42 %offamilyofficesconsidercryptoanddigitalassetsintheirinvestmentdecisions.

Cash

Realestate

Stocks

Privateequity(directinvestments)

Privateequity(funds)

Fixed-incomeinvestments

Preciousmetals

Funds

Venturecapital(directinvestments)

Crypto&digitalassets

12 %

15 %

47 %

3 %

21 %

55 %

12 %

58 %

9 %

3 %

28 %

38 %

6 %

3%

48 %

3 %

37 %

11 %

14 %

61 %

4 %

32 %

50 %

22 %

7 %

37 %

7 %

20 %

53 %

21 % 6 %

94 %

18 % 3 %

92 %

30 %

92 %

22 %

89 %

32 % 10 %

86 %

57 % 3 %

83 %

11 % 4 %

78 %

14 %

78 %

26 % 7 %

75 %

20 %

42 %

Significantreduction

Reduction

Nochange

Increase

Significantincrease

Source:RolandBerger

5 FamilyOfficeStudy2023

FamilyofficesmakedirectinvestmentsincharacteristicwaysDirectinvestmentsinprivateequity

Anincreaseindirectinvestmentisatrendwealreadydescribedinourfirststudyin2021,anditcontinuestobereflectedinthefindingsofourlateststudy.Familyofficesareverymuchcharacterizedbyentrepreneurialfamiliesandtheirbusinessexperience.Byputtingcapitaldirectlyintocompaniesintheformofprivateequityinvestments,thefamilygainstheopportunitytobeinvolvedinbusinessprocesses,whetherthatisalongsiderunningtheirexistingfamilyfirmoraftersellingit.PEinvestmentsalsoofferopportunitiestoexertamoredirectinfluenceonacompanyandthusitsassets.

Toidentifysuitabletargets,afullanddetailedanalysisofthecompany'sbusinessmodel,marketandcompetitivesituationneedstobeconducted.Assumingapositiveoutcometotheduediligence,themajorityoffamilyofficesregularlydecidetogoaheadwiththeacquisition.ThefocustendstobeoncompanieswithannualrevenuesoflessthanEUR20million.OnethirdofthecompaniesacquiredbyfamilyofficesgenerateannualrevenuesofbetweenEUR21-50million,whileonly16 %ofthebusinessestheypurchasereportannualrevenuesinexcessofEUR100million.

Around30 %ofrespondentsinvestonlyorofteninthesameindustryorsectorastheirformerfamilybusiness.Bycontrast,40 %neverorrarelydoso,astheyaremoreconcernedwithdiversifyingtheirportfolio.Thekeyrequirementsforcompanyacquisitionsarethattheycreatesynergiesandarecompatiblewiththeexistingportfolio.Potentialtargetsareprimarilyfoundthroughthefamilyoffice'snetworkandmandatedM&Aadvisors.

Shareoftargetsfromthesameindustry

asthefamilybusiness[%]

13 %

22 % Always

Never

16 %

Often

19 %

Rarely

31 %

Sometimes

Sizeoftargetsacquired

[revenueinEURmillion]

3 %

10 % EUR301-500million

EUR101-300million

3 %

EUR51-100million

48 %

EUR0-20million

35 %

EUR21-50million

Source:RolandBerger

6 FamilyOfficeStudy2023

Medicine&healthcareandIT&digitalbusinessmodelsarethetargetsectorsInvestmentfocusforfamilyoffices

Tobetteraddresscurrentmarkettrendsandexploitinvestmentopportunities,familyofficesintendnotonlytoreadjusttheirassetallocationbutalsotomodifytheirinvestmentfocus.

For69 %offamilyoffices,companiesfromthemedical

healthcaresectorarecurrentlytopoftheagenda(2022:66 %).ThisismainlyduetoouragingsocietyandtheexperienceoftheCOVID-19pandemic.IT&digitalbusinessmodels,too,areconsideredincreasinglyattractive(67 %;2022:64 %).Digitalbusinessmodelsinparticularoffersubstantialpotentialduetothegrowingacceptanceamongendcustomers.Greentechnologies,ontheotherhand,havebecomelessimportant,nowconsideredrelevantbyonly50 %ofrespondents.In2022,thisindustrywasstillinthetopspotat68 %.Infrastructureandindustrialapplicationsareonlyattractivetoaroundathirdoffamilyoffices.Theincreasedinputandenergypricesplayabigpartinthat.Servicesandfinance&fintechsaretheleastpopularareasforinvestment.

Thetrendtowardsinvestingincompaniesdirectlythroughprivateequityisgrowinginimportance,especiallyinthefocusindustries.Besidesthehighpotentialforprofit,thefamily'sindividualinterestsintherespectiveindustriesalsoplayanincreasinglyimportantrole.

Focusedinvestmentareasforfamilyoffices(multipleresponsespossible)

69 %

67 %

50 %

36 %

33 %

22 %

14 %

Medicine& IT&digital Green Infra- Industrial Services Finance&

healthcare businessmodels technologies structure applications fintechs

Source:RolandBerger

7 FamilyOfficeStudy2023

FamilyofficesareincreasinglyconsideringESGcriteriaintheirchoiceofassetsImportanceofESGcriteriaforfamilyoffices

Thesignificanceofenvironmental,socialandgovernance(ESG)criteriaintheinvestmentdecisionsmadebyfamilyofficescontinuestorise.Environmentalfactorsinparticulararebeinggivenincreasingweight.For56 %ofrespondents,resourcescarcityisanimportantaspecttoconsiderwhenselectingtheirassets.Andcarbonfootprintaswellaswaterconsumptionorwaterpollutionareconsideredby47 %offamilyoffices.

Whenitcomestosocialissues,64 %putemployeehealthandsafetytopofthelist.Fortwothirdsofrespondents,thetreatmentofemployeesisanaspecttheyconsidertobehighlyimportantwhenselectingtheirinvestments.Transparentsupplychainsareimportantfor41 %.

Notleastduetotheheightenedlegalrequirements,afunctioningcompliancesystem(69 %)andcom-prehensiveriskmanagement(64 %)areparticularlyimportantforfamilyofficesintermsofgovernancefactors.Inaddition,63 %ofrespondentsgiveethicalmanagementahighorveryhighweightingintheirinvestmentdecisions.Othergovernanceaspects,suchasthespecificcompositionofmanagement,arehighlyrelevantforjust21 %offamilyoffices.

InfluenceofESGcriteriaontheselectionofpotentialassets

Shareoffamily

officesfor

whichthe

topicis

8 %

6 %

31 %

50 %

relevant

6 %

Environmental

Resourcescarcity

100 %

10 %5 %

48 %

33%

5 %

6 %

15 %

32 %

47 %

Carbonfootprint

94 %

Waterconsumption/

9 %

9 %

35 %

47 %

94%

pollution

Other

58 %

Safety/health

3 %

33 %

64 %

100 %

Supplychain

6 %

14 %

39 %

33 %

8 %

100 %

transparency

Social

3 %

11 %

56 %

31 %

Othersocialfactors

100 %

6 %

29 %

63 %

3 %

Employeetreatment

97 %

6 %

6 %

65 %

24 %

Other

47 %

6 %

25 %

58 %

11 %

Governance

Compliance

100 %

Riskmanagement

3 %6 %

28 %

50 %

14 %

100 %

3 %

34 %

43 %

20 %

Ethicalmanagement

97 %

7 %

71 %

21 %

Other

39 %

Verylow

Low

Neutral

High

Veryhigh

Source:RolandBerger

8 FamilyOfficeStudy2023

MeasuringactualimpactisthebiggestchallengeImpactinvestingbyfamilyoffices

Investingforimpactisbecomingincreasinglysignificant.Foraroundhalfofthestudyrespondents,impactinvestingisnowimportantorveryimportant.Asaresult,moreandmorefamilyofficesareinvestinginbusinessesorareasthataddresssocialorenvironmentalchallengesandcreateadditionalbenefitsinadditiontogeneratingareturn.

Typicalsectorsincluderenewableenergies,organicfarming,educationandhealthcare.Intotal,47 %ofrespondentsalwaysoroftenmeasuretheimpactoftheirinvestments.Theiraimistomaketheirinvestmentstrategymoresustainableandalsotomonitorandimprovetheirownimpactperformance.Itcanalsohelpthemoptimizetheprocessofselectingpotentiallyinterestinginvestments.

Measuringtheimpactofinvestmentscanthereforebeusedasanactivemanagementtool.Thatsaid,itisinmanycasesdifficulttomeasuretheactualimpact.Wherekeyperformanceindicatorsarecomplexormissing,therecanoftenbealackoftransparency,and

Importanceofthenon-financialimpactofinvestments

8 % 8 %

Unimportant Veryimportant

42 % 42 %

Neutral Important

Frequencyofmeasuringtheimpactofinvestments

6 %

Never

thiscanreduceindividualstakeholders'acceptanceofsustainableinvestments.

19 %

Rarely

22 %

Always

28 %

25 %

Often

Sometimes

Source:RolandBerger

9 FamilyOfficeStudy2023

FamilyofficesfaceadiverserangeofinternalchallengesOrganizationalandfamily-relatedchallenges

Lastyear,around20 %offamilyofficesreviewedtheirinternalprocessesandprocedures.Cybersecurity,digitalizationandprofessionalizingthefamilyofficerepresentthebiggestorganizationalchallengesforover90 %ofrespondents.Otherorganizationalchallengesincludeaccesstotalent(89 %)andinternationalizingthefamilyoffice(56 %).

Lookingattasksdirectlyconnectedtothefamily,78 %offamilyofficesbelievethattheirgreatestchallengeistoputappropriatestructuresinplaceforthenextgenerationtotakeoverthebusiness,aswellastoensureadequateconsiderationofthefamily'sattitudetoriskinprocesseswithinthefamilyoffice(73 %).Gettingthenextgenerationinvolvedinthebusinessatanearlystageisachallengefor72 %ofrespondents.Sustainability(61 %)andeffectivegovernancestructuresthatenablethefamilytohaveanactiveinfluenceaswellasco-determinationarealsoimportantfor56 %.Refinancingthefamilybusinessislessrelevantforfamilyoffices(28 %)owingtotheclearseparationbetweenthebusinessandthefamilymoney.

Internalchallengesforfamilyoffices

Challengesconsideredimportantandveryimportant

8 %

42 %

50 %

Cybersecurity

Organizational

8 %

53 %

39 %

challenges

Digitalization

Accesstotalent

3 %

6 %

64 %

28 %

Professionalization

3 %

8 %

50 %

39 %

Internationalization

3 %

42 %

42%

14 %

Structuresforbusiness

8 %

14 %

42 %

36%

succession

6 %

22 %

42 %

31 %

Reflectingthefamily's

Family-related

attitudetorisk

challenges

3 %

8 %

17 %

44 %

28 %

Integratingthenew

generation

6 %

33 %

47%

14 %

Sustainability

Governancestructuresfor

3 %

39 %

31%

25 %

co-determination

25 %

19 %

28 %

14%

14 %

Refinancingthefamily

business

Veryunimportant

Unimportant

Neutral

Important

Veryimportant

Source:RolandBerger

10 FamilyOfficeStudy2023

FamilyOfficeStudy2023–Currentchallenges,investmenttrendsandthegrowingimportanceofESGcriteria

Keyfindings

1 2 3 4

Thebiggest

Privateequity

ESGcriteriaare

Currentinternal

challengesforfamily

investmentsinmedicine

becomingincreasingly

challengesforfamily

officesarehighinterest

&healthcareandIT&

importantininvestment

officesarecybersecurity,

rates,geopolitical

digitalbusinessmodels

decisions.Impactinvesting

digitalization,

upheavalsandapossible

arecurrentlykeytargets

isalsogainingrelevance

professionalizationand

recession.

forfamilyoffices.

inthiscontext.

accesstotalent.

Source:RolandBerger

Authors

Publisher

RolandBergerGmbH

RolandBerger

InstituteforFamilyBusinessandMittelstandatWHU

Sederanger1

JustusJandt

Prof.Nadine