Ocorian: Most FOs Unprepared for NextGen Handover
Despite awareness of the imminent wealth transfer, the majority of family offices are not ready for a handover to the next generation.
Less than a quarter (23 percent) of family offices are fully prepared for the handover to the next generation, according to a research report by fund services firm Ocorian.
Nonetheless, awareness is present with 99 percent of family office employees and advisors agreeing that more needs to be done on succession planning. Around 91 percent are observing a natural succession of wealth and leadership in the families they work. 3 percent say they do not see a natural succession while 6 percent are unsure.
Different Generation, Different Approach
Almost nine out of 10 (85 percent) of respondents believe the approach of the next generation differs from founders with 28 percent saying it differs significantly. 14 percent say the approach differs but don’t believe it is a contentious issue.
«Succession planning is always important in family offices and family businesses, but the growing wealth of the sector means succession planning is becoming ever more important and complex,» said Simona Watkis, Ocorian’s head of private client – Cayman.
«In general, the sector appears to be focused on the issue but less than a quarter say they are fully prepared and there is the additional issue of differences in approach and priorities of the next generation compared with the founders.»
The report was based on responses from family members and senior employees at family offices as well as related intermediaries representing $68.26 billion in total wealth. They originate from markets across 13 countries and territories including the UK, UAE, Singapore, Switzerland, Hong Kong, South Africa, Saudi Arabia, Mauritius and Bahrain.
