- March 1, 2020: Vol. 32, Number 3

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Wealth and prosperity: How real estate can deliver compelling capital growth and long-term income streams for family offices’ multigenerational ambitions

by Thomas Wiegelmann and Morten Bennedsen

Family offices exist for the purpose of investing and managing funds to sustain the family’s long-term wealth and prosperity. The wealth controlled by billionaires worldwide is estimated to be roughly $9 trillion. There is limited knowledge about how much capital is managed through professional family office structures; The Economist provided an indication of $3 trillion to $4 trillion in a December 2018 story titled “Family offices become financial titans: The growing ranks of billionaires’ in-house investment teams.” It is estimated that there are about 5,300 single-family offices, of which three-quarters are in North America or Europe. In addition, there are many multi-family offices that service up to hundreds of wealthy families.

Strategic allocation to real estate

Even 200 years ago, banker Nathan Meyer Rothschild stated that one should wisely invest one-third of one’s assets in property. Today, in times of creative monetary po

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