The concept of multifamily offices, organisations that have for decades managed and preserved the wealth of American and European families, is finally taking off in Asia.
This comes largely thanks to the region's fast-developing economies, with the mainland and India in the vanguard, showing no sign of slowing down - churning out a growing number of newly rich.
Headquartered in Cologne, Germany, Sal Oppenheim launched its banking operations in Hong Kong last July, its first foray in Asia. The bank plans to unlock Asian investment opportunities through hedge funds and private equity in the Greater China region for its existing European clients. Real estate opportunities will be offered at a later stage.
'We have decided that Asia will be the prime focal point of growth for the next 50 to 100 years and we wanted to be involved with the emergence of this growth,' said Reinhard Krafft, head of private wealth management at Sal Oppenheim, who noted that Hong Kong's reputation as an established banking hub, and its proximity to the mainland, had made the city an optimal entry point.
In particular, the German private bank wants to serve its existing wealthy European families who are interested in investing in Asia.
'The family office concept is still in its infancy in Asia compared to Europe and the US where wealthy families have taken a much more institutionalised approach to managing their wealth. However, we see the family office space as an area of growth here,' said Ming Lee, Sal Oppenheim's Asia chief executive.
In the past, family offices in Hong Kong and Singapore - Asia's most advanced private banking centres - have been slow to develop because of the manner in which Asians have traditionally perceived wealth.