SINGAPORE (BLOOMBERG) - DBS Group Holdings is seeing a surge in accounts for family offices that could boost its related assets under management to US$10 billion (S$13.5 billion) by 2025.
DBS is seeking to triple assets under management for the family office unit if markets are favorable from “strong single-digit billions” now. It grew by 40 per cent year on year with the average account holder placing US$150 million with the bank, said Lee Woon Shiu, a managing director who heads up wealth planning at DBS Private Bank.
The number of family offices in Asia has surged in recent years as the region’s wealthy clans seek professional money managers to look after their assets. Singapore is trying to become a global hub for the wealth management industry and local regulators in October estimated that the number of single family offices in the city grew to about 200 last year.
“We expect to see strong growth being created in Asia with the slew of IPOs being organized and arranged in Hong Kong and China,” said Mr Lee, adding that the average account holder has a net worth of US$600 million.
DBS expects to see continued compound annual growth of 20 per cent for the next three-to-five years, in assets under management for the family office unit this year, he added.
DBS’s assets under management for its wealth management operations, which include private bank and other services for the affluent, stood at $251 billion as of June.
Other growth is coming from non-Asian family offices stablishing satellite offices in Singapore for investments and holdings across the region - James Dyson’s Weybourne Group started a Singapore outpost last year.