Despite the challenging economic situation in the past three years, some families in Belgium have thrived financially. Some 70 such families have a combined wealth of €23 billion.
Since 2020, the Covid-19 pandemic, the war in Ukraine and the impact this had on energy prices and as a result inflation, worsening the financial health of many Belgian households. On the other side of the spectrum, however, are the super-wealthy, who managed to turbocharge their own finances and the country's economy despite these crises.
Research by De Tijd showed that only 73 Belgian families have boosted the Belgian economy over the past two years by investing €6 billion in it. Over 10 years (2012-2022), they even accounted for an injection of €15 billion. They were able to contribute these billions through so-called "family offices".
These are privately held companies that are set up by wealthy entrepreneurs or business families to handle investment and wealth management, with the goal being to effectively grow and transfer wealth across generations. Generally, entrepreneurs or families with at least €50 million to €100 million in investable assets take on such financial aid.
"Generating additional wealth through investments and protecting existing assets against risks such as inflation and market volatility is what many family offices are doing," Anneleen Michiels, professor of finance and family business at Hasselt University, told De Tijd.
Under the radar
The financial clout of these systems cannot be underestimated. In Belgium, 73 such family offices have combined savings of €23 billion. The top 25 alone have savings or equity of €19.6 billion, accounting for 85% of the combined total.
How many of these family investment funds are operating in Belgium currently is unclear as there is no legally recognised status, meaning they often remain under the radar.
The popularity of such mechanisms is increasing, especially among young entrepreneurs with start-ups or scale-ups as well as first-generation entrepreneurs who sell their shares and look for a way to manage those freed-up assets.
