Singapore’s DBS Multi Office AUM Cross $780 Million

Two years after its launch, the Singapore-based DBS Multi Family Office Foundry VCC (DBS MFO) has achieved a record $780 million in assets under management (AUM) as ultra-high net worth (UHNW) individuals and their families have been increasingly viewing Asia as a gateway for growth and investment opportunities.

Announcing this milestone, DBS Private Bank said that the strong uptake reflects the surging demand for innovative wealth planning solutions amid a historic intergenerational wealth transfer and growing interest in alternative investments, such as private markets and digital assets.

Since debuting in 2023 as the world’s first bank-backed multi-family office that leverages Singapore’s Variable Capital Company (VCC) structure, the DBS MFO has onboarded more than 25 UHNW families around the world, underscoring Singapore’s position as a leading family office and fund management hub.

These include families who were originally considering setting up their own Single-Family Office (SFO), but were won over by cost optimisation, manpower benefits and the ease of administration which the DBS MFO offers.

Even as UHNW families now have a wider pool of wealth structuring solutions at their fingertips, the DBS MFO continues to stand out in the following ways as it is designed as a unique ‘plug-and-play’ offering, where DBS will set up the sub-fund (which automatically benefits from the VCC’s tax incentive award) and manage ongoing regulatory reporting requirements on a client’s behalf.

This contrasts with other options that require families to set up their own fund entities and apply separately for tax incentives. Clients need only to invest $11.67 million to qualify for the DBS MFO.

The DBS MFO does not impose pre-determined investment philosophies nor are clients required to invest in DBS products. Instead, a client is free to directly customise investment strategies that are aligned with the family’s long-term vision. Clients can, in fact, leverage the bank’s open-architecture model to access an even broader ecosystem of funds and alternative investments, which includes private assets, structured products, as well as digital assets.

Capital is held and managed professionally by DBS, thereby maintaining the highest standard of governance and oversight underpinned by robust compliance frameworks and institutional resilience. An additional layer of legal separation and professional governance is further embedded within the DBS MFO structure.

Evolving Landscape of Wealth Structure

Lee Woon Shiu, Group Head of Wealth Planning, Family Office & Insurance Solutions, DBS Private Bank, said that the wealth structuring landscape was evolving rapidly, with families demanding solutions that are flexible, transparent and trusted.

While the traditional SFO model still appeals to many, they anticipated very early on that there would be growing demand for cost-efficient yet institutionally-supported solutions, Lee said.

“That was the thinking behind our DBS MFO, which we launched back in 2023 as a market-first, and today, the response has exceeded expectations. This milestone reflects our clients’ trust in us to come up with innovative structures that empower them to shape their wealth and legacies on their own terms,” Lee pointed out.

Today, DBS banks more than one-third of the SFOs established in Singapore, and its Family Office AUM has also more than doubled in the last two years.

“Client interest in succession planning and wealth preservation has intensified, and we are currently in talks with more than 15 prospects who see the DBS MFO as an attractive solution. With this in mind, we are on track to double our AUM to $1.56 billion by end-2026, achieving in just over half the time what it took to reach our first billion,” Lee added.

DBS has also seen more UHNW families committed to using their family wealth as a “force for good,” be it through impact investing or philanthropic means.