European family offices investing in tech and talent to futureproof operations

A new report from HSBC Global Private Banking in partnership with Campden Wealth shines a light on the operational challenges faced by family offices and the steps being taken to support their growth and readiness for the future.   

The European Family Office Report 2024 – which surveyed 101 family offices in Europe, representing $136 billion of total wealth – finds that family offices in the region expanded at pace last year. Almost 40% reported an increase in non-family staff numbers, while over half (56%) ramped up their investment in technology.  

Staff retention and recruitment remains a key challenge, evidenced by steps taken to maintain commercial competitiveness. The report shows that although the vast majority (80%) of European family offices reward employees with bonuses, these are often supplemented with other forms of incentivisation – such as co-investment opportunities (26%), profit shares (12%) and options on phantom equity (5%). More than a third (36%) also report a significant issue was a limited pool of available talent with appropriate skills. 

Investment in new technologies to aid operational efficiency also continues. A third of European family offices have already adopted some form of generative AI, with a further 30% keen to do so, while wealth aggregation platforms are the latest addition to the family office armoury, with their adoption rate up to 39% from 32% last year. 

Meanwhile, the report also finds that most European family offices have yet to plan for the wealth transfer. Under a half (47%) in Europe have a succession plan – compared with 55% in North America and 65% in Asia-Pacific – and only 13% have a formal, written plan.  

Caroline Kitidis, Global Head of Ultra High Net Worth at HSBC Global Private Banking, said: “Family offices are shaping their future, evolving rapidly to embrace new technologies and prepare for transformative shifts like the Great Wealth Transfer. It is inspiring to see their focus on growth and wealth preservation, building strong foundations to thrive in an ever-changing financial landscape.” 

Adam Ratner, Director of Research at Campden Wealth, commented: “European family offices are prioritising operational excellence by investing in technology and talent. These steps not only address immediate challenges like staff retention and recruitment but also enhance their long-term resilience. This strategic focus ensures they remain competitive and well-positioned to navigate future complexities.” 

Notes to Editors 

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Methodology 

The European Family Office Report 2024 report is based on a statistical analysis of survey responses from single family offices and private (non-commercial) multi-family offices located in Europe. A total of 101 family members and family office executives participated in this survey. Among them, 40% are family members, and 44% hold key leadership positions as chairperson, chief executive, founder, principal or president. On average, families participating in the survey have total wealth (including operating businesses) of US$1.8 billion, and their collective wealth stands at US$186 billion. Their family offices have on average US$1.35 billion of assets under management (AUM), while aggregate AUM stand at US$136 billion.  

 
About HSBC Global Private Banking 

HSBC Global Private Banking helps clients manage, grow and preserve their wealth for generations to come. Its network of global experts helps clients access investment opportunities around the world, plan for the future with wealth and succession planning, manage their portfolio with tailored solutions, and find the right support for their philanthropy. www.privatebanking.hsbc.com  

About HSBC Holdings plc 

HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$3,099bn at 30 September 2024, HSBC is one of the world’s largest banking and financial services organisations. 

About Campden Wealth 

Campden Wealth is a family-owned, global membership organisation providing education, connectivity, research and networking opportunities to families of significant wealth, supporting their critical decisions, helping to achieve enduring success for their enterprises and family offices, and preserving their family legacy. 

Campden Research supplies market insight on key sector issues for its client community and their advisers and suppliers. Through in-depth studies and comprehensive methodologies, Campden Research provides unique proprietary data and analysis based on primary sources.