NEWS AND INSIGHTS FROM FINTRX
In an effort to shine a light on the private wealth ecosystem, FINTRX Family Office & RIA Database provider has compiled the Family Office & RIA Monthly Data Report to provide a high-level synopsis of the investment advisory landscape for January 2023. This report offers an inside look at all FINTRX platform updates and additions made throughout the month, with metrics such as assets under management (AUM), alternatives utilized, fee structures, geographic breakdowns, separately managed accounts, family office direct transactions, RIA services provided and much more...
Throughout January, the FINTRX Data & Research team added 40 new family offices, over 240 family office contacts and nearly 300 newly tracked investments to our family office dataset.
In addition to platform additions, the FINTRX Data & Research team made 3,100+ family office updates, including 680+ family office updates and over 2,400 family office contact updates.
Family offices are often interested in a wide range of asset classes to diversify their investments and achieve their financial goals. These asset classes can include traditional investments such as real estate, as well as alternative investments such as private equity, hedge funds, and hedge funds. Throughout January, our dataset saw the addition of new family offices allocating to real estate and private equity, at 65% respectively. A majority of newly added firms also allocate via direct investments, at 60%.
Throughout January, 47% of newly added firms are single-family offices while 53% are multi-family offices.
The following chart accounts for all newly added family offices added throughout January that disclosed their assets under management (AUM). A majority of new family offices have assets between $1B - $5B, at 30%.
The chart below displays the geographical breakdown of all new family offices added to the FINTRX family office dataset throughout January. As you can see below, a majority of groups are domiciled in North America and Europe, at 38% respectively.
Family office direct transactions refer to investments made directly by a family office into a specific company, project, or asset, rather than through a fund or other intermediaries. This approach allows family offices to have more control and visibility over their investments, as well as potentially higher returns. Throughout January, we saw a majority of newly added family offices directly investing in the technology, financial services, manufacturing, real estate & construction and consumer goods spaces, while all other sectors made up 10% or less respectively.
The size of an RIA firm can be measured by the number of assets under management (AUM), which is the total value of the assets it oversees on behalf of its clients. Below we provide an RIA firm breakdown by AUM. As outlined below, 32% of newly added firms have assets between $500M-$5B, while groups with $1-$25M followed at 26%.
The gender breakdown of registered investment advisor (RIA) representatives refers to the proportion of male and female advisors working in the RIA industry. According to recent studies, the RIA industry has traditionally been male-dominated, with a higher proportion of male advisors compared to female advisors. However, the gender gap in the RIA industry has been gradually closing in recent years, with a growing number of women entering the field and rising to leadership positions. 71% of RIA firms added to the FINTRX registered investment advisor dataset in January are male reps while the remaining 29% are female reps.
Registered investment advisors often provide an array of financial and investment services to their clients. A majority of new investment advisory firms added to our dataset in January offer portfolio management for individuals and small businesses as well as financial planning services. Additional services provided include the selection of other advisors, portfolio management for businesses and institutions, portfolio management for pooled investment vehicles, pension consulting services and educational seminars, among others. RIA firms can and often have more than one service offered.
Registered investment advisor firms often use alternative investments as part of their investment strategies to diversify portfolios and provide clients with access to new opportunities for growth. Alternative investments can include private equity, real estate, hedge funds and other types of non-traditional assets. The utilization of alternative investments by RIA firms vary, with some firms having a significant portion of their assets invested in alternatives, while others may have a more limited exposure. In January, 69% of newly added RIA firms allocated to real estate to some degree. It's important to note, RIA firms can and often have more than one service offered.
FINTRX is a unified data & research platform providing comprehensive data intelligence on 850,000+ family office & investment advisor records, each designed to help asset-raising professionals identify, access & map the global private wealth ecosystem. Find relevant decision-makers in a snap with powerful search filters and queries. Uncover the data you need, when you need it and filter through areas of investment interest, AUM, asset flows, intent signals, potential associates and much more...
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February 27, 2023
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.