How are wealth taxation, family succession and private market risks reshaping the priorities of wealthy families?

The preservation and transfer of family wealth are becoming increasingly complex as governments reconsider the taxation of large fortunes, private market investments test investors’ liquidity expectations and disputes among heirs expose weaknesses in family governance. These challenges were evident during the week in California’s vote on a proposed billionaire wealth tax, the continuing ownership dispute within Italy’s Del Vecchio family and Blackstone’s tighter redemption terms for certain Asian private equity investors.

Meanwhile, Hong Kong’s record private wealth assets, Malaysia’s growing family office initiative and JP Morgan’s expansion in Dubai reflect intensifying competition for internationally mobile wealth. Strong wealth management earnings at DBS and OCBC reinforce the importance of advisory businesses, while South Korea’s proposed inheritance tax changes highlight the challenges of family business succession. Together, these developments underscore the need for wealthy families and their advisers to look beyond investment returns towards liquidity, ownership structures, governance and the preservation of wealth across generations.

Read more on the week's key developments:

California’s billionaire tax vote raises questions over wealth mobility and business ownership

California voters considered Proposition 40 on 3 November, a proposed one-time 5% tax on covered wealth exceeding $1 billion. By 7 November, preliminary results showed the measure trailing by approximately 53.3% to 46.6%, with about three-quarters of votes counted.

The proposal, intended primarily to fund healthcare, prompted debate over wealth inequality, business valuations and the possible movement of wealthy residents. A separate measure, Proposition 42, sought to restrict certain future taxes on personal financial assets.

The debate reinforces the importance of coordinating tax planning, residence, business ownership and liquidity management. Families holding substantial wealth in illiquid enterprises may face particular difficulties funding wealth-based taxes, while governments must consider how such measures affect investment and future tax receipts.

Blackstone and iCapital–Mubadala developments highlight private market liquidity risks

Blackstone introduced a four-year holding period for new Hong Kong and Singapore investors in certain share classes of its approximately $29 billion Blackstone Private Equity Strategies fund. Redemptions within four years attract a 5% penalty, while quarterly redemptions remain subject to a 3% net asset value limit.

Separately, iCapital announced on 5 November that an evergreen private markets strategy sponsored by Mubadala Capital would be available to qualified investors through its Middle Eastern wealth management platform. The strategy offers exposure to private investments with limited quarterly redemption opportunities.

Wider access to private markets does not eliminate the mismatch between illiquid assets and investors’ liquidity needs. Wealth managers and family offices must assess redemption restrictions, valuations, fees and suitability alongside commitments to operating businesses, succession settlements and other family obligations.

Del Vecchio family dispute exposes weaknesses in inherited wealth governance

Leonardo Maria Del Vecchio proposed buying out fellow shareholders in Delfin, the Luxembourg holding company controlling substantial family investments, including a 32.4% stake in EssilorLuxottica. The company is owned equally by eight heirs of Luxottica founder Leonardo Del Vecchio.

Reports on 2 November suggested financing of up to EUR 22 billion (about $24.6 billion) for the proposed transaction, although Citi did not confirm the arrangement. Reuters subsequently reported that four shareholders had rejected the proposal.

Equal ownership does not guarantee agreement over control or investment strategy. Wealthy families need clear shareholder agreements, voting arrangements, dispute resolution mechanisms and succession structures that preserve business continuity without leaving major decisions dependent on family consensus.

Hong Kong’s private wealth assets rise 24% to a record $1.66 trillion

Hong Kong’s private banking and private wealth management assets under management increased 24% to HKD 12.9 trillion (about $1.66 trillion) in 2025, according to the Private Wealth Management Association (PWMA) and KPMG China ’s report released on 5 November.

Among surveyed institutions, 77% reported stronger new-account and asset-booking demand, while 94% expressed moderate or high optimism about the industry’s five-year outlook. A further 79% expect Greater Bay Area initiatives, including Wealth Management Connect, to be critical or moderately important to their offshore Hong Kong business.

Hong Kong’s growth strengthens its position as a cross-border wealth centre, particularly for families with interests in mainland China and international markets. Private banks must translate inflows into lasting advisory relationships, while families increasingly assess jurisdictions on legal certainty, succession services and cross-border capabilities.

Malaysia’s family office initiative attracts $4.9 billion in indicative assets

Malaysia’s single-family-office incentive scheme had attracted MYR 20.8 billion (about $4.9 billion) in indicative assets under management by the end of September, according to Securities Commission Malaysia executive director Shahrul Amry Abd Malek on 2 November.

The figure exceeded the original MYR 2 billion ($0.47 billion) target. Malaysia has also proposed a multi-family-office model allowing participating families to engage licensed fund managers directly.

The initiative adds to competition among Asian jurisdictions for family capital and advisory activity. Its success will depend less on indicative asset figures than on whether families establish sustainable operations, professional governance and investment activities that contribute to the domestic economy.

Citi Private Bank builds Asia strategy around families with cross-border wealth

Citi Private Bank is building its Asia strategy around families whose businesses and assets span several jurisdictions, according to a Wealth and Society article published on 4 November. Steven Lo, Head of Japan, Asia North and Australia and Asia South at Citi Private Bank, said Asia contributes approximately one-third of Citi Wealth’s global revenues and is the fastest-growing and most productive region within the Private Bank.

The model draws on a One Citi approach linking the Private Bank, Wealth, Markets and Banking divisions, with family office advisory as a core capability.

For families whose assets span jurisdictions, this structure places banking, markets and family office advisory within one relationship.

International family office federation seeks to strengthen professional coordination

The IFFO - International Federation of Family Office is seeking to connect national family office associations, according to reporting published on 2 November. The Paris-based initiative involves associations from Belgium, France, Lithuania and Canada, with discussions extending to other markets, including Singapore.

The initiative reflects the increasing institutionalisation of family offices as they expand their international investment activities and confront common challenges in governance, recruitment, succession and regulatory compliance.

Greater professional coordination could improve access to expertise and strengthen governance practices, particularly among smaller family offices. Its practical value will depend on whether the federation establishes credible services and standards while respecting the confidentiality and independence of individual families.

DBS and OCBC wealth fees reach records as advisory businesses expand

DBS Bank reported nine-month wealth management fees of SGD 2.69 billion (about $2.11 billion), up 24%, with wealth assets under management reaching SGD 544 billion (about $426 billion). Third-quarter wealth fees rose 9% year on year but declined 6% quarter on quarter.

OCBC reported nine-month wealth management fees of SGD 1.33 billion (about $1.04 billion), up 25%, and banking wealth assets under management of SGD 358 billion (about $281 billion). Wealth fees accounted for 62% of total fee income, although weaker investment performance at Great Eastern affected the broader wealth management business.

Wealth management is becoming an increasingly important source of fee income for Singapore’s banks as interest rate conditions change. Sustaining growth will require deeper advisory relationships, transparent pricing and services extending beyond investment distribution into financing, succession and family governance.

JP Morgan expands Dubai private banking operations to serve international wealth

JP Morgan Private Bank announced on 2 November that it was establishing a branch in the Dubai International Financial Centre, regulated by the Dubai Financial Services Authority.

The bank said it had more than tripled its Dubai-based private banking team over the preceding year, reflecting growing demand from entrepreneurs, family offices and internationally mobile wealthy clients.

Dubai’s development as a wealth centre is intensifying competition among global and regional private banks. Clients with assets, businesses and family members across jurisdictions increasingly need integrated investment, financing, tax and succession services rather than conventional portfolio management alone.

South Korea’s proposed inheritance tax changes raise family business succession concerns

South Korean business owners raised concerns at a National Assembly forum on 2 November over proposed changes to family business inheritance tax relief. The government’s September tax revision bill would narrow eligibility to 727 detailed industry classifications and extend the qualifying management period from 10 to 30 years.

Business representatives warned that the restrictions could discourage restructuring, diversification and commercially necessary changes before ownership transfers to the next generation. The proposals remain under legislative consideration.

Inheritance tax relief can help preserve family businesses, but restrictive eligibility rules may constrain their ability to adapt. Families and advisers need to integrate succession, business strategy, ownership arrangements and liquidity planning while monitoring how the final legislation treats legitimate restructuring.

What to watch next

Wealth taxation: California’s final ballot results and the implications for wealthy residents, business ownership and jurisdictional planning.

Private market liquidity: Whether longer holding periods and redemption restrictions become more common as evergreen funds expand into wealth management.

Family business succession: The outcome of South Korea’s inheritance tax debate and developments in the Del Vecchio ownership dispute.

Family office development: The implementation of Malaysia’s family office framework and the emergence of professional standards across international family office networks.

Cross-border wealth management: Competition among Hong Kong, Singapore and Dubai for internationally mobile families seeking integrated investment, governance and succession services.