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Family Offices: Trends in Sustainable Investing
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The role of family offices in sustainable investing
Posted by Unknown
The role of family offices in sustainable investing

The trend towards sustainable investing is not a short-term fad. In fact, sustainable development and sustainable investing are both here to stay. The aftermath of the COVID-19 pandemic has provided that now more than ever, the need for partnership across private, public and government is critical. Experts believe that sustainable investing will become the standard way that people choose to invest their money. Further, it is our belief at Aneuvia, that ​​family offices are strongly poised to impact long-overdue changes across society, not only via their charitable endeavors, but also through their financial portfolios.

First and foremost, let’s start with a basic definition of what family offices are and what they set out to achieve. According to Investopedia.com, “family offices are private wealth management advisory firms that serve ultra-high-net-worth individuals.” Differing from traditional wealth management companies, they offer a total outsourced solution to managing finances and investments, such as budgeting, insurance, charitable giving, wealth transfer, and tax services. 

The family office was originally conceptualized to serve as a wealth and trust management vehicle for high-net-worth families, under the notion of a multi-generation family business. There are several different forms a family office can take. Single Family Offices serve the investment needs of an individual family. Multi-family Offices are structured like an asset management firm, providing wealth management and planning to a group of families and/or high-net-worth individuals.

Embedded Family Offices are usually an informal structure that exists within a business owned by an individual or family. With embedded family offices, the family considers private assets as part of their family business and extends private wealth management to employees of the family business.

According to the Ernst & Young Family Office Guide, there are currently over 10,000 family offices globally. This is a dramatic increase since 2008, when there were an estimated 1,000 family offices globally. A contributing factor to this rise is the uptick in the wealth landscape. According to the Global Wealth Report from Credit Suisse, there are now 46.8 million millionaires, accounting for almost 44% of the world’s total wealth. Technological advancements, entrepreneurship and the growth of the knowledge economy has provided newly wealthy individuals with the opportunity to explore investment management solutions. 

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