Asia’s unrelenting pace of wealth creation continues to reshape the region’s financial landscape. With high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals on the rise, generational wealth transfer is becoming a pivotal topic. According to a 2023 McKinsey & Co study, an astonishing USD 5.8 trillion will be handed down in Asia between 2023 and 2030. For many families, establishing family offices has become the go-to strategy for managing this transition.
However, setting up a family office is far from straightforward. The study notes that personnel costs alone account for a staggering 45% to 65% of operating expenses for single-family offices managing between USD 15 million and USD 500 million in assets. Building and maintaining a robust team—including investment managers, tax advisors, legal consultants, and administrative staff—requires significant expertise and resources.
"One might think a family should run their own family office—after all, it’s in the name," remarked Stella Lau, Managing Director Wealth Advisory at Lighthouse Canton. "However, the reality is that the running costs and regulatory intricacies make it challenging for many to go down this route."
.png)
FAMILY OFFICE EVOLUTION
For families looking for a more efficient path, multi-family offices and blended models are gaining ground. These setups combine bespoke services with shared operational efficiencies, offering a flexible solution without the overhead of a standalone office. This shift is emblematic of a broader trend in Asia: families turning to trusted advisors and independent wealth managers to navigate the complexities of preserving and growing generational wealth.
"Finding the right partners is crucial," Lau shared. "Clients are drawn to independent models like Lighthouse Canton’s, where the focus is on alignment with their investment goals and entrepreneurial spirit, rather than pushing products. This is particularly appealing to a new generation of wealth holders who value innovation and flexibility."
As the appetite for independent wealth management grows, so does the demand for skilled talent in this space. Recent events, such as the downfall of a prominent private bank and stricter regulations on family office setups, have sharpened investor scrutiny.
Families now rely more heavily on relationship managers who have earned their trust over generations. But as wealth transitions to younger heirs, preferences shift. The new generation seeks advisors who resonate with their modern outlook and entrepreneurial mindset.
"Clients increasingly look for professionals who not only understand their investment philosophy but also share their entrepreneurial spirit," said Lau. "They want wealth managers to be nimble and adopt a flexible and client-centric approach."
Also read: Why do we need a family office?
A NEW IMPERATIVE OF DIVERSITY
This evolving dynamic underscores the need for greater diversity in wealth management, spanning cultural, professional, and gender lines. Women’s growing financial influence is also a key driver of this trend. Many female clients value empathy, thoughtfulness, and patience—qualities they often prefer in their advisors.
"In my private banking experience, gender preferences among clients varied," Lau shared. "Some clients have preferred female bankers for their empathetic approach, while others leaned towards male advisers, as they are sometimes perceived to have fewer personal commitments. These preferences are often shaped by cultural nuances and market-specific dynamics."
Interestingly, while private banking has achieved gender parity in many markets, independent wealth management is still skewed towards male bankers. Lau noted that the candidate pool often reflects a 2:1 male-to-female ratio.
"This may be because male bankers are more inclined towards the entrepreneurial model, seeking upside potential, while female bankers generally prioritize stability and welfare benefits commonly offered in banks," she explained.
Adding to this perspective, Charu Kunwar, Executive Director, Global Head Human Resources at Lighthouse Canton, shared that this space is evolving too.
"There is growing prominence of women in independent asset and wealth management as well, reflecting a larger societal transformation," Kunwar said. "Women bring a nuanced perspective that resonates with increasingly diverse and sophisticated clients."
The growing prominence of women in independent asset and wealth management reflects a larger societal transformation.
For the first time in history, women in Asia hold more wealth than their counterparts in any other region except North America. Interestingly, their growth potential is also the fastest in the world.
According to Boston Consulting Group, women in Asia are expected to control US$27 trillion in assets by 2026. Many of these women are self-made entrepreneurs or senior professionals driving the region's economic narrative.
"Families and the broader professional ecosystem are also becoming more supportive," Kunwar observed. "We’re seeing more women take on roles requiring travel, networking, and client meetings—activities once seen as barriers to their growth."
A FUTURISTIC VISION
As Asia’s wealth continues its upward trajectory, independent wealth managers are uniquely positioned to meet rising client expectations by fostering a diverse talent pool. By building teams whose expertise and perspectives reflect the diversity of their client base, they can create meaningful partnerships that resonate across generations.
"The future lies in creating meaningful partnerships that resonate across generations," Lau concluded. "This is not just about managing wealth but about aligning with client values through inclusivity and innovation."
Kunwar echoed similar sentiments, adding: "Organizations and markets must adapt with talent strategies and client engagement models that reflect these fundamental shifts."
With Asia at the forefront of global wealth creation, independent wealth managers are set to define a new era in wealth management by embracing inclusivity, innovation, and an entrepreneurial vision.
Also read: The forces behind Lighthouse Canton’s strategic talent expansion
.png)
.png)
.jpg)
.png)
.jpg)