Key Takeaways:
- Perth’s family offices have tripled since 2019, driven by mining wealth.
- Local skepticism of global managers boosts Perth’s family office appeal.
- Perth’s next-gen wealth could further expand its family office market.
What Happened?
Perth, Australia, has seen a significant rise in family offices, specialized entities managing the wealth of ultra-rich families. Since 2019, the number of family offices globally has tripled, reaching nearly 4,600 in 2023, according to Preqin Ltd. Perth, benefiting from a long mining boom, now boasts 64 centi-millionaires, putting it among the world’s richest cities.
Notable families, like Andrew and Nicola Forrest of Fortescue Ltd., lead the charge with their family office, Tattarang, which invests in sectors like renewable energy and health technology. Rod Jones, founder of Navitas Ltd., also established his family office, Hoperidge Capital, to manage his wealth independently.
Why It Matters?
The rise of family offices in Perth signifies a shift in wealth management trends, emphasizing local control and deep-rooted connections over global management. This development highlights Perth’s growing economic power and its ability to attract and sustain ultra-rich families.
Family offices bring significant investments into various sectors, potentially driving economic growth and innovation in the region. The preference for local management over global wealth managers indicates a strong sense of community and trust among Perth’s elite, providing a unique market dynamic.
What’s Next?
Perth’s family office sector is poised for further growth, driven by the wealth generated from its booming mining industry. As the current generation of mining magnates prepares to pass their wealth to their children, the demand for family office services will likely increase. The relaxed lifestyle and proximity to world-class beaches add to Perth’s allure for wealthy families seeking both business opportunities and quality of life.
The challenge remains in attracting skilled financial professionals to this relatively remote location, but imaginative recruiting strategies and a growing local talent pool could bridge this gap. Investors should watch for increased investments in sectors like renewable energy, health technology, and agri-food, driven by these family offices.
