Discover how FINTRX empowers its customers to map, access and sell into the complex and fragmented world of Family Offices and Registered Investment Advisors.
NEWS AND INSIGHTS FROM FINTRX
Over the course of 2021, family offices underwent continued growth and expansion, as did the FINTRX family office data and research platform. From January to December, the FINTRX data set grew to include 3,100+ unique family offices, over 17,400+ family office contacts, and more than 20,000+ tracked investments. Continue reading for a full breakdown of all new and updated family office data from 2021, with insights such as direct transactions tracked throughout the year, family offices investing in ESG funds, regional breakdown, and much more.
On behalf of the FINTRX team, I would like to thank you for taking the time to review our 2021 Family Office Data Report. Throughout 2021, the family office space underwent several large-scale changes and overall expansion. Our team has mobilized to continue to provide you with transparent and up-to-date intelligence on the family office market.
I founded FINTRX in 2014 with a mission to provide asset-raising professionals access to high-quality family office data, and the ability to leverage it in a streamlined manner. Paramount to this mission is the constant maintenance and aggregation of millions of data points pertaining to the global family office landscape. Today, our platforms are used by hundreds of clients globally – all of whom rely on our depth of data, its accuracy, and our state-of-the-art technology engineered to provide the research you need. Our collective resilience and continual commitment to our clients have been felt across functional departments.
We at FINTRX, anticipating this family office growth, took measures to ensure our research department was equipped with the means necessary to continue effectively tracking and analyzing the industry. Alterations throughout the year included vastly expanding our team of dedicated analysts and restructuring leadership within the department. The result was our largest year-over-year increase in family office data, since inception. While we are undoubtedly proud of the strides taken throughout 2021 and its results, we intend to build on these successes and continue to improve our exceptional data set throughout 2022.
Thank you for your time and interest.
In continuing our mission to provide the most robust insight on single and multi-family offices, we are thrilled to release this annual 2021 data report outlining numerous family office data trends and notable investment activity within the alternative wealth space.
Because the family office landscape tends to be a closely guarded one, it makes our efforts both challenging and rewarding. However, through the expansion of strategic partnerships, private sourcing methods, and public aggregation, we were able to deliver our largest YoY increase in data since the inception of FINTRX in 2014.
This report has been produced exclusively utilizing our family office data and research platform. Thanks to our dedicated research team - who continuously work to update and expand our data set - we can share credible information regarding family offices and the private wealth landscape at large.
Throughout the course of 2021, the FINTRX Family Office Data Platform added a total of 180 new single and multi-family office entities. Of those newly added family offices, 42% are single-family offices, while 58% are multi-family offices.
Family offices often invest with two strategies in mind, wealth preservation, and asset growth. Alternative asset classes often allow for both. Below, we outline alternative asset classes of interest for this particular subset. 75% of new family offices added to the FINTRX platform throughout 2021 show a tendency to invest in the housing market, while 70% chose the direct route. Private equity and hedge funds followed closely behind, at 69% and 52%, respectively. Less than half showed interest in long-only funds, venture capital, and fund of funds.
Here, we outline the assets under management (AUM) breakdown of new family offices added to our dataset throughout 2021. The most prevalent among this sample size are those with AUM between $100M-$400M, at 36%, followed by those with assets between $400M-$1B, at 17%. 15% of family offices have more than $5 billion in assets under management. The remaining AUM ranges make up 13% or less.
Several variables play a role in the types of investments these entities make. One of the more prevalent patterns drawn from our research is the connection between the industry of wealth origin and the industry of investment interest. With that said, there is a clear tendency for groups to invest in opportunities throughout familiar industries.
As seen in the chart here, a majority of family offices created their wealth via financial services, as private investors, or through real estate. 50% of family offices did not disclose their origin of wealth.
Throughout our research, we continued to observe family offices harnessing direct investment opportunities. Direct investments are an optimal route for family offices as they allow the family office to focus on buying companies of a preferred size or industry, ultimately ensuring greater control of their capital.
Technology remained the leading industry for family offices going direct at 24%, with over 2,000+ transactions made into private tech companies throughout the year. 12% of newly added family offices made direct investments in private healthcare and biotechnology companies. Other sectors of interest include financial services at 11%, consumer goods at 9%, and real estate & construction, at 8%. Additionally, our data team added approximately $116B+ of family office assets to our dataset.
Family offices continue to show an interest in ESG investments, especially in recent years. Several indicators highlight this trend of family offices increasing allocations to ESG-focused funds and companies. For instance, research suggests that ESG investing is not only socially responsible but fiscally advantageous. With that said, we continue to see private wealth groups modeling their investment strategies with an emphasis on sustainability and ethics.
ESG considerations seemingly widen the scope of investment goals to include benefits for society. As you can see below, nearly half of family offices added throughout 2021 had some sort of involvement in ESG funds.
Geographically, the FINTRX data set's expansion coincided with the increase of family offices. Here, you can see 54% of newly added family office entities are domiciled in North America. Europe and the Middle East follow at 27% and 11%, respectively. The rest of the world makes up the remaining 8%.
Throughout the year, we received great feedback on the accuracy and breadth of data, as well as the effectiveness of our new Registered Investment Advisor Data Platform, which covers 6.3 million investment advisor data points, over $16.5 trillion investment advisor assets tracked, and much more.
Having the unique opportunity to interact with our users on a daily basis, our team has witnessed and discussed the pain points of prospecting into the family office space. Because of the intuitive approach our platform takes to address specific prospecting challenges, asset-raising professionals can feel confident in pursuing the private wealth space moving forward. For our clients, the result was not only increased access to the private wealth landscape but also allows for time to be spent on other areas of their business.
"Thank you for taking the time to read through our 2021 Family Office Data Report. The past year has been one of accelerated growth across the entire FINTRX platform. Our dedicated data and research team has worked tirelessly with the objective of expanding and improving the quality of data for our clients. The result has been the largest increase in overall data additions, updates, and alterations since the company’s inception. This growth comes as a result of a substantial increase in research personnel and resources. While we as a research team are incredibly proud of the progress we have made the past year, we intend on building upon these accomplishments and continuing to drive value for our global suite of FINTRX users. Thank you again for taking a few moments to review our report and we look forward to the opportunity to work with you."
FINTRX provides comprehensive data intelligence on 750,000+ family office & investment advisor records, each designed to help you identify, access, and map the private wealth ecosystem. Explore in-depth dossiers on each family office & investment advisor. Access AUM, source of wealth, investment criteria, previous investment history, sectors & industries of interest, advisor growth signals amongst other key data points.
Additionally, FINTRX provides insight and expansive contact information on 750,000+ decision-makers, featuring job titles, direct email addresses, phone numbers, common connections, alma maters, past employment history, brief bios & much more.
For an in-depth exploration of the FINTRX family office platform, request a demo below.
Visit the FINTRX Resource Library below for useful family office narratives, PDFs, and guides to success.
February 14, 2022
Renae Hatcher is a member of the marketing team at FINTRX - focused on delivering targeted & relevant family office and registered investment advisor content to our subscribers.