Latest news with #SingleFamilyOffices
Bloomberg
3 hours ago
- Business
- Bloomberg
Family Offices Eye Private Equity, Crypto in Push Beyond Stocks
Family offices are pursuing private equity investments and looking to add digital assets as their portfolios rely less on stocks, according to a new report. Among family offices with more than $1 billion under management, two-thirds plan to increase allocations to private equity funds this year, a nearly 70% increase compared to 2024. That comes as public equities account for about 19% of investable assets at these firms, a 28% drop compared to last year, according to the 2025 Investment Insights for Single Family Offices report from BNY Wealth.
Time of India
20-05-2025
- Business
- Time of India
Indian family businesses show strongest succession intent: HSBC
BENGALURU: India's family-run businesses are taking a more structured and optimistic approach to succession compared to their Asian peers, with stronger planning, deeper intergenerational trust, and a clearer intent to keep businesses within the family, according to HSBC Global Private Banking's new report on family-owned enterprises in Asia. Tired of too many ads? go ad free now Across the region, a large gap exists between intent and action. While 78% of entrepreneurs surveyed said they want to pass their business on to their family, 52% have no formal succession plan in place. India, however, stands out. The report found that 79% of Indian entrepreneurs plan to transfer their business to a family member, the highest among all 10 markets surveyed, including the UK and Switzerland. Indian business families also reported the highest levels of trust in intergenerational leadership. About 95% of Indian entrepreneurs who inherited their family business said they felt trusted by the previous generation when taking charge, compared to a global average of 81%. Similarly, 92% say they trust the next generation to uphold the values and culture of the family enterprise. Many Indian family businesses are still undergoing first-to-second generation transitions, a stage considered especially vulnerable. The report noted that a significant portion of such businesses were founded after India liberalised its economy in the early 1990s, mirroring a similar trajectory in Mainland China. India's ongoing intergenerational wealth transfer is also expected to be one of the largest in Asia. Citing Hurun data, the report noted that India had 334 billionaires as of 2024, nearly 70% of whom are expected to be part of a 1.5 trillion dollar wealth transfer, which is equivalent to more than a third of India's GDP. Tired of too many ads? go ad free now Despite strong legacy sentiments, 45% of Indian entrepreneurs surveyed said they do not expect their children to take over the business. This reflects a growing acceptance of alternate aspirations and a willingness to let the next generation chart their own paths. The report also pointed to rising interest in professional wealth structures such as Single Family Offices. Wealthy Indian families are increasingly exploring these vehicles to diversify holdings, formalise governance, and support future generations in managing wealth, following trends already visible in Singapore and Hong Kong.
Business Times
15-05-2025
- Business
- Business Times
Many Singapore family businesses unprepared for succession; some prefer to sell: HSBC
[SINGAPORE] Many family-owned companies in Singapore are not fully prepared to pass on the business to the next generation, according to a HSBC report released on Wednesday (May 14). In fact, selling the business is also becoming a preferred option, the report said. While 81 per cent of Singapore's entrepreneurs would like to keep their business in the family to preserve its legacy, only 55 per cent have prepared a concrete plan for leadership transition. This gap is even more pronounced in other parts of Asia, said HSBC. 'In particular, we found that roughly two-thirds of respondents from Mainland China, Hong Kong and Taiwan have not planned for how their businesses might continue after them. It is a state of affairs that seems likely to not only damage family harmony over the short-term, but also jeopardise its wealth and business affairs over the longer one,' said the bank. Globally, while 78 per cent of entrepreneurs express the desire to pass on their business, only 52 per cent have taken planning steps. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The findings are based on a survey of 1,798 high-net-worth business owners with at least US$2 million of investable assets. These owners come from Mainland China, France, Hong Kong, Taiwan, India, Singapore, Switzerland, UAE, UK and US. HSBC's findings underscore a looming leadership vacuum, especially as Asia prepares for an estimated US$5.8 trillion intergenerational wealth transfer by 2030, with the region rapidly creating billionaires. 'Rising financial wealth does not make discussions about business succession any easier. It can have the opposite effect,' the report said. 'For what can be a sensitive topic for any family, is likely to be far harder if the first and second generation have experienced radically different lives thanks to their country's rapid economic transformation.' Succession versus selling: A shifting mindset Although succession remains the preferred route, selling the business has become a viable option. Business owners in Mainland China, Hong Kong, Taiwan – and to a lesser extent, Singapore – show the most interest in selling, out of the 10 markets surveyed. The sector most favoured for sale globally is electronics (21 per cent) while the least favoured are food and beverage and manufacturing (both 6 per cent). For entrepreneurs in Asia, Single Family Offices (SFO) are also growing in popularity as the end destination for sales proceeds. They enable families to professionalise their wealth and for the next generation to diversify it into varied industries through direct investments, private equity and allocations to other asset classes, said HSBC. The sector is booming in both Hong Kong and Singapore, and at the beginning of 2025, Singapore had 2,000 SFOs, up from 400 in 2020. Why succession is more complex in Asia While entrepreneurs in Asia have benefited from the region's recent and rapid economic rise, they have less experience in managing wealth, the report said. 'Economies have radically changed in the space of just one generation, forging different expectations among the second generation in the process,' the HSBC report said. 'On top of this, all companies face a more globalised world where geopolitics, international trade and competition are in flux.' Generational flexibility Despite wanting and trusting the next generation to carry on the family business, many entrepreneurs in Asia recognise their children may have different aspirations and a significant proportion are open to them exploring what they want. In Singapore, 43 per cent of entrepreneurs want their children to be able to carve out their own path. Edith Ang, HSBC's head of family advisory, said: 'Asian entrepreneurs and their families can better prepare for the future by embracing a dynamic, forward-thinking approach to extending business longevity and protecting wealth. 'This can maximise the smoothness of eventual transitions. It does not have to be a decision to keep the business in the family or sell and formalise the wealth through a single family office. Sometimes the optimal solution could be a blend of the two.'
