Samsung Securities' family office has surpassed 200 client families and 55 trillion won in client assets.

Samsung Securities said on Tuesday that as of early September its family office had 200 client families and 55 trillion won in client assets.

Samsung Securities' family office is an ultra-high-net-worth service that provides comprehensive management of investments, tax and succession for clients with at least 100 billion won in financial assets.

Recently, inflows of exit owners who secured large amounts of cash after selling their companies have become prominent. Samsung Securities said its exit owner clients have risen by about three times from 3 years earlier. The number of individual asset owners holding at least 100 billion won in financial assets, separate from their corporate stakes, is also increasing.

As client types have diversified, wealth management methods have also become more segmented. It is based on the view that traditional owners with a high share of corporate equity, emerging owners who accumulated assets during a growth phase, and exit owners who secured liquidity through company sales each have different asset allocation, investment goals and succession plans.

Samsung Securities runs an "investment management-type wealth management" model in which private bankers and investment management specialists at headquarters jointly handle clients.

It provides an investment management framework at an institutional investor level for clients who hold large assets or whose liquidity rises at once due to a company sale.

It also runs a dedicated advisory organisation for each family, called a "committee". Through regular annual meetings and ad hoc advice, it checks clients' asset status and key tasks, and experts in investment, tax and succession provide customised solutions.

Its outsourced chief investment officer, or OCIO, service is also expanding. As of end-June, the OCIO assets under management for family office clients exceeded 900 billion won. It provides everything from establishing asset allocation strategies to product construction, management and post-management, reflecting each client's investment objectives and asset structure.

Samsung Securities' analysis of clients' asset allocation showed that exit owners tend to actively diversify investment targets using global assets and alternative investments.

Traditional owners held stocks, bonds, alternative investments and liquidity relatively evenly, while emerging owners showed the characteristic of managing personal assets and corporate assets for different purposes.

It is also tapping a global investment network. It is providing global investment opportunities to family office clients by working with global alternative investment managers including Apollo, Blackstone and KKR, as well as Singapore sovereign wealth fund Temasek, among others.

It has also expanded services into asset succession and family management. It provides heritage solutions that include business succession and tax strategies, wills, public interest and donation trusts, the establishment of charitable foundations, and real estate consulting.

For corporate clients, it also links Samsung Securities' investment banking capabilities, including initial public offerings, fundraising, block deals and mergers and acquisitions. It is a strategy to connect corporate growth and stake monetisation to personal wealth management after an exit and the transfer of assets to the next generation.

Jeonghwa Yoo (유정화), head of Samsung Securities' family office division, added, "Samsung Securities' family office will continue to develop based on the experience built up managing 55 trillion won in client assets, global partnerships and Samsung's infrastructure."