DBS Multi-Family Office Assets Surpass S$1 Billion, Aiming for S$2 Billion by 2026
DBS Bank's multi-family office (MFO) service, established two years ago, has seen its assets under management (AUM) exceed S$1 billion. The bank anticipates this figure will double to S$2 billion by the end of next year, fueled by increasing interest from ultra-high net worth individuals (UHNWIs) in Asia.
Strong Growth Driven by Wealth Transfer and Alternative Investments
DBS Bank announced this milestone in a statement on Tuesday, September 23rd. The service, known as "DBS Multi Family Office Foundry VCC," launched in 2023 and has already attracted over 25 UHNWI families globally. This robust growth reflects a rising demand for innovative wealth planning solutions, driven by intergenerational wealth transfer and a growing interest in alternative investments such as private markets and digital assets. It also highlights Singapore's prominence as a leading hub for family offices and fund management.
Client Profile and Investment Preferences
Lee Wen Hsiu, Group Head of Wealth Planning Family Office & Insurance Solutions at DBS Bank, noted in an interview with 《联合早报》 that the families originate from Europe, India, and other parts of Asia, with businesses spanning both traditional and emerging technology sectors. Some families, initially considering setting up their own single-family offices (SFOs), opted for the multi-family office service as a more cost-effective way to test the market or due to challenges in finding suitable talent to manage a family office in Singapore.
Some families eventually established their own SFOs in Singapore after using the MFO service to "test the waters." According to Lee, these families are interested in investments across secondary market stocks, bonds, funds, private equity, and cryptocurrencies. The minimum investment amount is S$15 million, with some families investing over S$100 million.
Beyond Investment: Legacy Planning and Impact Investing
In addition to investments, these high-net-worth families are also interested in legacy planning, impact investing, and philanthropic endeavors. UHNWIs are typically defined as individuals with investable assets exceeding US$30 million (approximately S$38.5 million).
The Appeal of the Multi-Family Office Model
Lee Wen Hsiu emphasized the rapidly evolving wealth architecture, with families increasingly requiring flexible, transparent, and trustworthy solutions. While the traditional SFO model remains attractive to many, DBS anticipated a growing demand for cost-effective, institutionally supported solutions. The bank believes this foresight led to the early launch of the MFO in 2023, and the market response has exceeded expectations. DBS is currently in discussions with over 15 potential clients, who find the MFO to be an appealing option. They project doubling the AUM to S$2 billion by the end of 2026, taking only slightly longer than half the time it took to reach the first S$1 billion.
DBS Multi Family Office Foundry VCC Structure
DBS's multi-family office operates as a variable capital company (VCC) in Singapore, utilizing an "umbrella structure" with multiple sub-funds to offer customized investment strategies. Clients can choose to have their sub-funds managed by the bank's discretionary portfolio management team, family members, or a designated investment advisor.