The Rise of Family Offices in Perth: A New Trend Among the Wealthy
In the exclusive suburb of Peppermint Grove in Perth, Western Australia, a new trend is emerging among the elite residents. The wealthy denizens of this affluent area are increasingly turning to family offices to manage their vast fortunes, signaling a shift towards a more sophisticated approach to wealth management.
Traditionally, financial hubs like Dubai, London, New York, and Singapore have been the epicenters of the family office world, catering to ultra-high-net-worth individuals with assets exceeding $100 million. However, as the global rich get richer, the number of family offices worldwide has more than tripled since 2019, reaching almost 4,600 last year, according to investment data provider Preqin Ltd.
Perth, with its 64 centi-millionaires and a population of over 2 million, is now emerging as a new hub for family offices. The city’s wealth is tied with Stockholm and surpasses that of Berlin and Dublin, making it one of the richest cities in the world by that measure.
Prominent figures like Andrew Forrest, the richest Australian with a fortune of $29.2 billion, have established their own family offices in Perth. Forrest and his family run Tattarang, which invests in public and private companies and focuses on philanthropic endeavors through their Minderoo Foundation.
Other affluent families in Western Australia are also following suit, setting up family offices to manage their assets and investments. Shaun Parkin, a consultant who assists families in establishing their offices, has worked with over 20 companies overseeing more than A$200 million in assets, highlighting the hidden wealth in the region.
The allure of family offices lies in their ability to provide personalized and discreet services to the ultra-wealthy, allowing them to exert tight control over their financial affairs. In Perth, where locals are wary of outsiders, the appeal of working with a local family office is even greater, as it fosters a sense of familiarity and trust.
As Perth’s economy continues to thrive, fueled by the mining sector and other industries, the demand for family offices is expected to grow. With a unique blend of wealth, opportunity, and a relaxed lifestyle, Perth is poised to become a bustling ecosystem for family offices in the years to come.