Geographical shifts: Why Europe is becoming more important in the family office market

The Global Redistribution: Why Europe and the Middle East are Growing

The investor landscape for family offices is changing dramatically. While North America has historically been home to the largest and wealthiest family offices - with 53% of global wealth - the emphasis is increasingly shifting to new regions.

The current geographical distribution: North America 53%, Europe 27%, Asia Pacific 12%, Middle East 5%, South America 2%, Africa 1%. These numbers appear stable, but the dynamic growth rates tell a different story: Europe and the Middle East are growing faster than established markets.

In 2025, 442 new family offices were founded worldwide. A significant proportion of these – particularly in Europe (London, Zurich, Frankfurt) and the Middle East (Dubai, Abu Dhabi) – show a clear structural shift in the investor landscape.

North America: Still dominant, but growth slowing

The USA and Canada remain the largest markets for family offices. With 53% of global assets under management, its dominance remains unbroken. But the pace of growth is slowing:

• Market Maturity: The US market is highly consolidated. The largest FOs already have trillions of AUM. It is more difficult for new founders to create differentiation.
• Regulatory complexity: The SEC and other US regulators have continued to tighten FO rules. This creates costs and complexity.
• Capital efficiency: New wealth creation in tech, biotech and other sectors is increasingly happening globally, not just in the US.

London Skyline – Europe’s largest financial center

Europe: Emerging and fast growing

Europe, with 27% of global family office assets, is a dynamic and fast-growing market. Three reasons are driving this growth:

1. Technological innovation in Europe: London is a global fintech hub. Berlin and Munich are biotech hubs. Paris and Zurich have strong wealth management traditions. These innovation clusters generate new wealth.

2. Family assets from classic European industries: Generations of successful entrepreneurs in medium-sized businesses, mechanical engineering, pharmaceuticals and other sectors are formalizing their wealth structuring - often in the form of family offices.

3. Regulatory advantage: Europe has created progressive regulations for alternative investments with AIFMD (Alternative Investment Fund Manager Directive) and now MiCAR (Markets in Crypto Asset Regulation). This attracts international family offices.

Key European Hubs:

• London: Global fintech and wealth management hub. Over 300 FOs with bases in London.
• Zurich: Traditional private banking center with strong FO structures and advisor networks.
• Frankfurt: Financial infrastructure, regulatory expertise, and a growing tech ecosystem.
• DACH region: Middle-class economies with significant intergenerational wealth transfer.

Asia Pacific: Fastest wealth growth

Asia Pacific is the fastest growing market, currently accounting for 12% of global FO assets. One reason is the exponential wealth creation in China, India, South Korea and Singapore.

Key trends: New wealth, not traditional wealth. Tech founders from China and India are creating new wealth faster than any other region. These founders often formalize asset structures earlier because they want to invest globally.

European Business Hub – Growing investor market

Middle East and Gulf Region: The Hidden Growth Champion

Currently accounting for just 5% of global wealth, the Middle East may seem a small market – but its growth rate is spectacular. The Kingdom of Saudi Arabia, the UAE and other Gulf states are currently experiencing the fastest formalization of family office structures in the world.

Reasons for this growth:

• Post-oil diversification: Gulf states are consciously diversifying away from oil dependence. Family offices are central to this strategy (Saudi PIF, UAE Sovereign Funds).
• Strategic Hub Status: Dubai and Abu Dhabi are establishing themselves as global hubs for Middle East, Africa and South Asia investments.
• Regulatory Innovation: The UAE has created progressive crypto and tech regulations that attract internationally-oriented investors.

Cross-Border Investment: The New Normal

A crucial trend: Family offices are increasingly cross-border investors. Geographic fragmentation is less of an obstacle than it used to be.

Why cross border?

• Global deal flow: Best opportunities are not available locally. A European FO with a strong interest in tech can invest directly in Bay Area or Berlin startups.
• Asset flows: The assets of Gulf states flow into European and Asian investments. Conversely, European FOs are exploiting the growth opportunities in Asia.
• Decentralized teams: Larger FOs today have multi-office structures - London, Dubai, Singapore, Hong Kong as operational centers.

Implications for founders and fundraisers: Geography Matters

This geographical redistribution has direct implications for founders:

• Diversify your investor base: Don’t just fundraise in local markets. A North American startup can now easily come into contact with European or Middle East FOs.
• Understand Regional Preferences: Different regions have different sector preferences. Golfe FOs are very interested in tech and energy transition. European FOs for medium-sized businesses and industrial technology.
• Regulatory arbitrage: FOs from restrictive markets seek jurisdictions with progressive regulation (particularly in crypto and alternative assets).
• Relationship building: The large FO hubs are well known. Networking intensity in these centers is crucial for fundraisers.