Growing Demand for Family Office Services in Vietnam
It’s interesting to see the evolving landscape of private equity and family offices in Vietnam. The challenging fundraising conditions, including rising interest rates and geopolitical uncertainties, have led firms like PENM Partners to seek capital from family offices. Family offices are often more receptive to higher risks and interested in Vietnam’s opportunities and diversification from China. This trend is attractive to a new generation of family offices from the US and Europe, while ultra-high-net-worth individuals in Asia are actively diversifying their portfolios with a keen interest in alternative investments.
Raffles Family Office, a multifamily office headquartered in Hong Kong and Singapore, has also intensified its commitment to private equity transactions within Southeast Asia. They recognize the value of geographical and sectoral flexibility as a risk mitigation measure and express a desire to expand their reach into various markets.
The increasing number of ultra-rich individuals in Vietnam, projected to reach 1,300 by 2027, signifies a burgeoning potential for family office services in the region. Vietnam has also experienced substantial growth in its population of high-net-worth individuals, and this segment is expected to continue to soar in the coming years. These projections align with the sentiment expressed by data analyst Preqin, which views private equity as the premier asset class for the upcoming decade.
Overall, the landscape of private equity and family offices in Vietnam is evolving, with family offices becoming an appealing source of capital for investment firms and a growing interest in alternative investments among wealthy individuals in the region.