October '23 Family Office & RIA Monthly Data Report

Each month, FINTRX Family Office & Registered Investment Advisor (RIA) Platform adds and updates thousands of family office, investment advisor, contact, tracked investment and asset datapoints to our dataset. To showcase this model of growth and provide a high-level synopsis of the private wealth landscape, we have compiled our monthly Family Office & Registered Investment Advisor Data Report for October 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 more. 

October '23 FINTRX Family Office & RIA Data Report

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Family Office Platform Additions

The FINTRX Data & Research team added nearly 60 new family offices, 580+ family office contacts and over 630 direct investment transactions to our Family Office Dataset. 

• - New Family Offices: 59
• - New Family Office Contacts: 584
• - Newly Tracked Family Office Investments: 633

Updated Family Office Entities

In addition to 1,270+ platform additions, FINTRX made 4,520+ family office updates including 400+ firm updates and 4,125 contact updates. 

• - Updated Family Offices: 404
• - Updated Family Office Contacts: 4,125

Single Family Offices vs. Multi-Family Offices

80% of newly added firms in October were single family offices (SFOs) while 20% were multi-family offices (MFOs).

• - New Single Family Office Additions: 80%
• - New Multi-Family Office Additions: 20%

Assets Under Management (AUM) Breakdown

A majority (57%) of new family offices manage between $50 million and $1 billion in assets. Only 14% of added firms manage more than $5 billion on behalf of their clients.

- $50M-$400M: 43%
- $400M-$1B: 14%
- $1B-$2B: 11%
- $2B-$5B: 18%
- $5B+: 14%

Asset Class Interest Breakdown

When it comes to the asset class interest of family offices added in October, FINTRX continued to see a majority of firms (86%) allocating via direct investments into private companies, followed by real estate and private equity.

• - Direct Investments: 86%
  
• - Real Estate: 44%
  
• - Private Equity: 44% 
  
• - Venture Capital: 31%
  
• - Debt: 17%
  
• - Long Only: 14%
  
• - Hedge Funds: 12%
  

Family Office Geographical Breakdown

The vast majority of family offices added in October are headquartered in North America, accounting for 68% of total firms. European offices accounted for roughly 17%, with the remaining regions--Asia, Middle East, Latin America/Caribbean & Africa--making up the remaining family offices.

• - Europe: 17%
• - Asia: 8%
  
• - Latin America/Caribbean: 5%

Newly Tracked Family Office Investments

Top 10 Sectors of Interest

The large majority of new family office investments tracked in October were made into Technology companies, which accounted for more than 320 direct transactions. Other top sectors of interest included financial services, consumer goods, healthcare & biotechnology and business services.

• - Technology: 52%
• - Financial Services: 19%
  
• - Consumer Goods: 15%
• - Healthcare & Biotech: 15%
• - Business Services: 14%
  
• - Manufacturing: 12%
• - Real Estate & Construction: 8%
• - Media & Entertainment: 7%
• - Leisure & Lifestyle: 5%
• - Transportation: 4%
  
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October '23 Registered Investment Advisor (RIA) Data

• - Total Registered Entities (including Dually Registered): 204
• - Total Registered Contacts: 4,780+
• - Total Accounts: 7,500+
• - Firms Using Alternatives: 106 or 52%
• - Total AUM Added by New Firms: $3.7 Billion

Accounts Breakdown

The FINTRX RIA dataset saw a significant addition of discretionary accounts to our dataset in October, making up 99% of new accounts added.

• - Total Accounts Added: 7,500+

Contact Breakdown by Rep Type

A majority (85%) of newly added RIA representatives are registered as broker-dealers. Smaller segments included those registered as investment advisors at 9% while owner-only and dually registered (investment advisor & broker-dealer) contacts each made up a combined 7%.

• - Broker-Dealers: 4,043
• - Investment Advisors: 411
• - Owner-Only Contacts: 240
• - Dually Registered: 87
  

Rep Gender Breakdown

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, 61% of reps added in October were male while 39% were female. 

• - Male Reps: 61%
• - Female Reps: 39%

RIA Client Base Breakdown

The newly added RIA firms added to FINTRX in October show that 64% of their client base is institutional, while individual and family clients account for roughly 36%.

• - Institutional Clients: 64%
  
• - Individual & Family: 36%

Firm Size by Assets Under Management (AUM)

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 (44%) of newly added RIA firms are considered 'Mid-Size' groups, with assets under management between $100M and $500M. 

• - Micro ($1-$25M): 20%
• - Small ($25M-$100M): 30%
  
• - Mid-Size ($100M-$500M): 44%
• - Large ($500M-$5B): 1%
  
• - Jumbo ($5B+): 5%
  

RIA Services Provided

Of the new RIA firms incorporated into the FINTRX dataset, 55% offer portfolio management for individuals and small businesses, while 40% provide financial planning services. It's important to note that RIA firms typically offer more than one service.

Top RIA Services Provided:

1. 1. Portfolio Management for Individuals/Small Businesses: 55%
2. 2. Financial Planning Services: 40%
3. 3. Selection of other Advisors: 18% 
4. 4. Portfolio Management for Businesses/Institutions: 15%
5. 5. Portfolio Management for Pooled Investment Vehicles: 13%
6. 6. Pension Consulting Services: 8%
7. 7. Educational Seminars/Workshops: 7% 
8. 8. Publication of Periodicals/Newsletters: 2%
9. 9. Portfolio Management for Investment Companies: 1%

Alternative Investments Utilized

Firm Level

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. As you can see in the chart below, 68% of newly-added RIA firms displayed some allocation to real estate within their investment portfolios. A smaller fraction displayed interest in private placements, hedge funds, private equity and REITs, among a variety of other alternatives. 

• - Real Estate: 68%
• - Private Placements: 43%
  
• - Hedge Funds: 34%
• - Private Equity: 31%
• - Venture Capital: 23%
• - REITs: 19%
• - Commodities: 18%
  
• - Oil & Gas: 13%
• - Corporate Debt: 12%
• - Digital Currency: 5%
• - Fund of Funds: 3%
  
• - Private Debt: 3%
• - Collateralized Debt: 2%
• - Managed Futures: 1%
  
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FINTRX Overview

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 nearly 4,000+ family offices, 20,000+ family office contacts, 40,000+ registered investment advisor entities, and 746,000+ registered reps. Data for every record within FINTRX is pooled 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.