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 following data report to provide a high-level synopsis of the private wealth landscape for May 2023. This report offers an inside look at all FINTRX platform updates and additions made throughout the last 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 May, the FINTRX Data & Research team added 61 new family offices, 350 family office contacts and 420 newly tracked investments to our Family Office Dataset.
In addition to 830+ platform additions, the FINTRX made 4,515+ family office updates including 470+ family office firm updates and over 4,030+ family office contact updates.
When it comes to the asset class interest of newly added family offices, FINTRX saw a majority of firms allocating to real estate, via direct investments into private companies and private equity.
Throughout May, 52% of newly added firms are single family offices (SFOs) while 48% are multi-family offices (MFOs).
A majority (39%) of newly added firms (that disclosed their AUM) have assets between $100M and $400M.
- $50M-$100M: 4%
- $100M-$400M: 39%
- $400M-$1B: 26%
- $1B-$1.5B: 9%
- $1.5B-$2B: 9%
- $2B-$5B: 9%
- $5B+: 4%
A majority of newly added firms are headquartered in North America, accounting for 44%, while Europe is home to 36% of the new additions.
A significant portion of newly added family offices showed direct investment activity in the technology sector with nearly 130 investments made. Other sectors attracting attention included healthcare & biotechnology, financial services, consumer goods and manufacturing.
The FINTRX RIA dataset saw a significant addition of discretionary accounts to our dataset in May, making up 99% of new accounts added.
A majority (74%) of newly added RIA representatives are registered as broker-dealers. Smaller segments included those registered as investment advisors at 10% while owner-only and dually registered contacts each made up 8% respectively.
The newly added RIA firms added to FINTRX in May reveal that 74% of their RIA clientele are institutional, while individual and family clients account for 26%.
The size of an RIA firm can be measured by its assets under management (AUM), or the total value of assets the firm oversees on behalf of its clients. A majority (56%) of newly added RIA firms in May are considered 'Mid-Size' groups, with AUM between $100M and $500M.
The gender breakdown of RIA representatives refers to the proportion of male and female advisors working in the RIA industry. As you can see below, 69% of RIA firms added to the FINTRX RIA dataset in May are male reps while 31% are female reps.
Of the new RIA firms incorporated into the FINTRX dataset, 69% offer portfolio management for individuals and small businesses, while 48% provide financial planning services. Additional investment advisory services provided include portfolio management for businesses and institutions, selection of other advisors, pension consulting services and educational seminars, among several others. It's important to note, RIA firms can and often have more than one service offered.
The utilization of alternative investments by RIA firms varies, with some firms having a significant portion of their assets invested in alternatives, while others may have a more limited exposure. 74% of newly added RIA firms displayed some allocation to real estate within their investment portfolios. A smaller fraction displayed interest in hedge funds, private placements and private equity, among a variety of other alternatives.
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. FINTRX data intelligence covers 3,700+ family offices, nearly 20,000 family office contacts, 40,000+ registered investment advisor entities, and 746,000+ registered reps. Data is sourced from 10+ public & private sources.
Equipped with 375+ search filters and numerous customization options, FINTRX allows you to seamlessly track where family office & investment advisor capital is flowing, uncover allocation trends, break down investments by sector & size, understand future investment plans and much more.
June 23, 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.