Family offices ‘kept captive’ by relationship managers turn to independent advisers, direct deals

Singapore's family offices are taking a more active role in sourcing their own investment opportunities as the sector becomes more institutionalized, according to the Private Family Society's AI & Family Office Summit on Oct 5. Managing principal at advisory firm Sophatych, Anupum Khaitan, explained that family offices in the region are often "kept captive" by relationship managers and private banks, leading to suboptimal investment decisions.

He added that information often arrives as a pitch rather than intelligence about the best options for families.

The society, founded by Khaitan and Sean Tan of Bespoke 81, reported that as of end-2025, there were over 2,000 single-family offices in Singapore, which receive tax incentives from the Monetary Authority of Singapore. While many allocators are making direct investments, Khaitan noted that performance requirements will eventually necessitate professional allocation to experts who can closely monitor investments.

Bursa Malaysia-listed MUI Group's executive chairman and CEO, Andrew Khoo, agreed, emphasizing that while direct deal flow from connections and networks will persist, third-party advisers will continue to play a crucial role in uncovering investment opportunities.

The extent of the shift from siloed operations to institutionalized setups varies depending on a family office's size. Smaller operations typically operate on an advisory model, executing investments through private banks, while institutional family offices, akin to fund managers, employ internal teams with discretionary mandates.

Industry players at the AI & Family Office Summit emphasized the increasing allocation of capital towards AI, but observed that most opportunities to invest in AI remain in the US, despite many Asian family offices operating outside the US.