Asia's wealthiest family fortune is threatened by chaos

Jakarta, CNBC Indonesia - the transition of the wealth of the first generation to its successor is a huge challenge for rich families in Asia. The latest report Julius Baer revealed, unprepared succession and intergenerative views may threaten the family's integrity and impeding business sales.

The Julius Baer Family Barometer report that The Strits Times quoted on Tuesday (20 / 10 / 2026) revealed the low readiness of the family's business owners facing a transition of wealth. Only 3.5% of the wealth management professionals who handle clients in Asia judge most of the families they escort are actually ready to sell companies or divert assets. Global, that number is even lower, which is 2.3%.

The difference in expectations of a business evaluation becomes one of the main causes of a family conflict that can derail the sales plan. The dispute about the company's future, the founder's emotional attachment, the inheritance, until the right time to retreat is also a hindrance.

Another problem arose from the minimal engagement of the next generation in determining the future of business and family wealth. Only 8.4% of respondents in Asia report that the next generation have equal voting rights in that plan. Some are simply questioned, involved in limited discussions, or not even involved at all.

The report was based on a survey of over 700 family counselors in different countries. His findings reflect the professional judgment that accompanied the family, not a direct survey of the owners of wealth.

After business was sold, more than 75% of the rich family advisors in Asia chose to form a single family office, which is an institution that manages the wealth of one family centrally. Another alternative is to form a family investment entity or start a new business.

"Unless you have a large-scale family office with resources, it will be difficult to form a special team for each asset class, and manage noninvestment functions such as legal, operational, and legacy planning," says Christos Anagnostopoulos, Head of Solutions and Family Office for Asia.

Therefore, Anagnostopoulos says that families generally still need external experts to handle certain functions.

Some of the founders in Asia also chose to share wealth after corporate sales. Some assets are managed professionally to maintain a long-term value of wealth, while the rest are used to finance new businesses and direct investments.

According to Anagnostopoulos, this approach allows families to professionalize wealth management without losing the entrepreneurial spirit that is the foundation of their business.

Asian District Chief Julius Baer, Jimmy Lee, judging the family needs to talk about succession long before business sales becomes an option.

"Involving the next generation early on and agreeing on long-term goals family can help maintain wealth and entrepreneurial spirit that builds such wealth," said Lee.

globally, 80% of respondents call the lack of harmony in the family as a barrier in sales or business diversions. The findings show that financial readiness alone is not enough: deals about ownership, management, asset division, and investment points are also required to allow the transfer of wealth between generations to trigger prolonged conflict.