Single family offices in Asia account for a tiny share of the world's total, but given the size of the UHNW population in the region, growth potential is vast.

Despite its rapidly expanding wealth and dominance of family-run firms in much of Asia, the region so far accounts for a relatively tiny 3 per cent of all the world’s single family offices – or around 100, according to a report by Credit Suisse.

And that small percentage figure compares with Asia accounting for a quarter of ultra high net worth individuals globally, the Zurich-listed bank reports.

The total SFO sector around the world is made up of about 3,000 of these institutions, already a well established market in North America and to some extent, in Europe. In Asia, by contrast, the sector is akin to a young teenager – at least half of the SFOs have been created only within the last 15 years.

The comments about the size of the sector came as the bank launched a report called Family Office Dynamic: Pathway to Successful Family and Wealth Management. The report was launched at Credit Suisse’s inaugural Asia Pacific Family Office Forum in Hong Kong late last week.

“To set up a single family office, the amount of family wealth under management is generally at least $100 to 150 million. The Credit Suisse Global Wealth Report 2013 estimates that there are close to 34,000 ultra-high-net-worth individuals globally with more than $100 million in wealth, with 25 per cent of these or more than 8,400 in Asia; yet only 3 per cent of existing global SFOs are in the region,” Bernard Fung, Credit Suisse’s head of Family Office Services and Philanthropy Advisory Asia Pacific, said at the event.

“As more of our ultra-high-net-worth clients are entering the mature phase of their wealth lifecycle in the coming years, they will start thinking about long term wealth management and succession planning, and increasingly need advice on structuring their wealth and management of liquidity for the next generation. Setting up an SFO can be an important part of this process,” Fung added.

Infrastructure needs of SFOs
A report of the event said discussions at the forum covered the topic of infrastructure requirements of SFOs.

As SFOs grow in size and sophistication, they are increasingly defining their own specific investment strategies, becoming more self-directed and looking for institutional sales and trading capabilities, with some of the most advanced effectively operating like a hedge fund, the bank said.

The report was produced in conjunction with Ernst & Young and the University of St Gallen of Switzerland.