In recent years, American ultra-rich individuals have been flocking to establish family offices, and this trend is becoming increasingly evident. What exactly do these institutions do? Simply put, they manage everything for the wealthy—ranging from investment and financial management to daily life chores, providing a one-stop solution. They are large in scale, operate discreetly, but their influence is definitely not to be underestimated.

How astonishing are the numbers? Currently, American family offices manage approximately $5.5 trillion in wealth. Just five years ago, it was only $3.3 trillion, representing a 67% increase. This year, it is expected to rise to $6.9 trillion. By 2030? Surpassing $9 trillion is no longer a problem.

Even more impressive, the assets managed by these institutions will soon surpass those of hedge funds. Imagine that—professional investment firms have fought over this territory for so long, now being overtaken by private offices of the wealthy.

Globally, the number of family offices has already exceeded 8,000. In 2019, there were only 6,130, a one-third increase in just a few years. At this rate, surpassing 10,000 by 2030 is a certainty.

This is also why major banks, financial institutions, and investment managers are desperately trying to curry favor with these family offices. Whoever can meet the needs of these wealthy families will be able to carve out a huge piece of the wealth pie. Competition is already fierce.