Holding $5.5 trillion in assets, the rapidly rising Wall Street big player: family offices!

In the power landscape of Wall Street, a low-profile yet rapid force is rewriting the rules of the game—Family Office. They do not go public, do not raise funds, and do not disclose financials externally, yet they are becoming an increasingly significant "invisible capital provider" in the capital markets. According to Deloitte, the global wealth managed by family offices has reached approximately $5.5 trillion, a staggering 67% increase compared to five years ago. This figure is expected to rise to $6.9 trillion this year and surpass $9 trillion by 2030. Deloitte even predicts that in the future, the assets managed by family offices will exceed those of the hedge fund industry. "This is not growth; it's explosive expansion," said Hendrik Jordaan, a partner at a law firm that exclusively serves family offices. "I truly believe that family offices will become the next private equity." From "Wealthy Standard" to "Status Symbol" In the past, family offices were exclusive tools for super-rich individuals like Bill Gates, Jeff Bezos, and Michael Dell; today, families with a net worth of tens of millions or even hundreds of millions are also entering the fray, either building their own offices or opting for the "Multi-Family Office" model. Deloitte's data shows that the number of single-family offices worldwide has exceeded 8,000, a growth of about one-third since 2019, and it may surpass 10,000 by 2030. In the social circles of ultra-high-net-worth individuals, "having a family office" has become a status label in itself. "At cocktail parties, everyone talks about this," admitted Justin Flach, a high-end wealth management professional at Bank of America. "Behind this is a symbol of certain status." Currently, about 800 registered investment advisors claim to be multi-family offices, managing wealth for dozens of families, a number that has grown by approximately 30% over the past decade. A New Type of Competitor on Wall Street: Competing with Blackstone and Apollo for Projects What truly catches the market's attention is not the "lifestyle management" aspect of family offices, but their firepower and freedom on the investment side. Unlike pension funds and hedge funds, family offices are only accountable to the family, do not need to disclose regularly, do not have to appease external investors, and do not have to worry about short-term performance rankings. This grants them three unique advantages: Extremely long investment cycles: They can hold assets for ten or twenty years. More concentrated risk appetite: They dare to take large positions with less hedging. Very short decision-making chains: Quick to decide and act. In some large mergers and private equity transactions, leading family offices are already able to compete head-to-head with institutions like Blackstone, Apollo, and KKR. Their presence is not only seen in the private market but is also beginning to penetrate public markets and cutting-edge technology fields—from AI, data centers, biotechnology to dental clinics and medical beauty institutions, they cover almost everything "Not short of money, not in a hurry for money," the favorite financial backers of entrepreneurs It is precisely because they are "not short of money" that family offices have a strong appeal to entrepreneurs and asset managers. Compared to traditional institutional investors' frequent performance evaluations and risk control clauses, family offices place more emphasis on long-term vision and sector judgment. One entrepreneur described this type of funding as "not loving hedges and not fearing volatility." However, obtaining this type of funding is not easy. "I receive three financing emails every day," said entrepreneur Vinod Gupta, "and I basically delete them all directly." More than just investment, it's "full life management" Beyond wealth management, family offices often serve as the central system for family life: from global asset allocation, charitable donations, and art collection, to paying thousands of bills, managing private jets and yachts, and even arranging psychological consultants and family affairs managers. In family offices with assets exceeding $500 million, over 20% have art advisors. Major firms like Citigroup can even arrange "private" art tours for clients when museums are closed. A noteworthy trend is that family offices are beginning to ally like institutions. They exchange investment leads with each other, participate in transactions together, and form "family investment clubs" to gain stronger bargaining power for better terms. In a world where information is highly confidential, "referrals from acquaintances" are often more important than roadshows