Netherlands: A Wealth Managers Overview

Why the Dutch Family Office Market is Entering a New Phase

The number of millionaires in the Netherlands has been rising for years. The group of ultra-high-net-worth individuals (UHNWI) is also growing. According to Statistics Netherlands (CBS), more than 13,000 households have assets of USD10 million or more. A small proportion of these have sufficient wealth to work with a multi-family office (USD25 million-plus) or to establish their own single-family office (EUR200 million-plus).

It is not only the number of wealthy individuals that is changing the family office market. Increasing complexity, driven by more stringent regulation and a new generation taking responsibility for family capital, is also an important force reshaping the Dutch family office market. An interview with Nienke Bollen, managing partner of Providence Capital.

“The questions families are grappling with have become much broader. For many years now, it has not only been about investments or tax matters. Of course, those remain important. But I see, for example, that family dynamics have become much more important. That changes what families need from us. The questions families ask concern philanthropy, privacy, the next generation, but also private markets. No single adviser can cover all of that alone,” says Nienke Bollen

“Single-family offices relied for many years on a small group of advisers. They are now discovering that they need more expertise. Increasingly, I see those single-family offices joining forces with multi-family offices, which have a larger group of advisers around them. That means that, for a specific problem, you do not ask your regular adviser for advice, but the person who understands that particular situation best.”

Multi-family offices are also seeking collaboration. In recent years, some firms have been acquired by private equity firms, while others - such as Providence Capital itself - have opted for a long-term partnership. Providence Capital recently entered into a collaboration with industry peer Clavis, after Strikwerda Investments had previously taken a stake in the company.

Robust Systems

According to the interviewee, the market in the Netherlands is currently being reshaped. “It is not about becoming bigger for the sake of becoming bigger. It is about having the capacity to invest. Sometimes these are investments whose results a client does not immediately see. Think of compliance, cybersecurity and more robust systems. Regulation is also becoming more demanding. These obligations increase the fixed costs of advice, making it harder for smaller organisations to carry the full operational burden on their own. Client due diligence, anti-money laundering rules and data protection are all hygiene factors. They must be 100% in order. It is clear that AI will play a major role in all of this. All market participants are working on it. What is clear is that, in five years’ time, we will be doing far more with AI, but no one yet knows exactly what that will look like.”

Notably, some single-family offices outsource parts of their administration, reporting or investment infrastructure to multi-family offices. A strong multi-family office seems like the perfect complement for those who want to retain control over family decisions, but do not always want to build an internal organisation for every function.

How is the Client Changing?

“Established families with inherited wealth no longer define the client profile on their own. New clients are entrepreneurs who have sold their businesses. Entrepreneurs are used to being close to decision-making. They have built something themselves and taken risks. After a sale, they do not suddenly want a black box. They want control, clarity and people around them who can keep up with their pace,” says Bollen.

The sale of a business affects not only the entrepreneur but also the entire family. “What I often see is that family members, for example, think differently about risk appetite, lifestyle, the point at which children gain access to the family wealth, or which charities should receive donations. As a result, a family suddenly needs a framework for decisions that were previously embedded in the business. Let it be clear: a good family office does not sit in the family’s chair. The decisions remain with the family. But a family office does help a family make better decisions.”

What Role Do Private Markets Play?

“For entrepreneurial families, investing in private markets often feels natural,” says Nienke Bollen. “They understand private companies. They have an affinity with entrepreneurship and know that value creation takes time. Unfortunately, the best opportunities are not always accessible, and there are also many poor-quality funds.”

Here too, according to Bollen, scale and specialisation are important. “A multi-family office with a broad network can compare managers, funds and direct investments more effectively than an adviser who only sees such opportunities occasionally. It is not only about opening doors. It is also about knowing which doors should remain closed.”

This is also relevant for advisers who work with family offices, such as tax specialists, lawyers and civil-law notaries. “The days when you called a fixed notary for every question are behind us. A private-equity investment can have tax, legal, governance, reporting and succession implications. We only work with advisers who understand the broader family office context.”

The Next Generation

Nienke Bollen sees generational change as another important shift in the market. “In many families, control will shift from founders or first-generation wealth creators to children and grandchildren. That is not only a legal or financial transfer. It is also about education and about keeping the family together.”

“I see that the next generation often asks different questions. They may feel less connected to their parents’ advisers.”

“For advisers, that transition is both a risk and an opportunity,” says Bollen. “You cannot assume that children will trust you simply because their parents did. They ask their own questions, and rightly so. In many cases, you have to earn that relationship all over again.”

This means that family offices must invest in dialogue with those new kids on the block. Education is important. The next generation should not be introduced to wealth only at the moment of transfer. They need to understand the family history, the investment strategy, the responsibilities and the choices ahead.

“Within that generational transfer, philanthropy plays an important role. What I like about philanthropy is that it often brings a different kind of conversation to the table. It is not only about returns or structures, but about what a family considers important and how younger family members can be involved.”

Families increasingly want to make a meaningful contribution, involve younger generations, measure impact and align their giving with family values. That does not mean every family wants a public profile or a large foundation. Many prefer discretion. “But even discreet philanthropy benefits from clear objectives, governance and careful selection of partners.”

For the next generation, philanthropy can be an important entry point. “It enables younger family members to participate in decisions, express values and learn how capital can be deployed responsibly. It can strengthen the family itself.”

What Does This Mean for Trusted Advisers?

Consolidation does not make lawyers, tax specialists and civil law notaries less important. “Their role remains essential,” says Nienke Bollen. “But families increasingly need a single point of contact. They want the separate pieces of advice brought together as one.”

Personal

According to Nienke Bollen, the essence of the work is not changing. “Our work remains a highly personal business. AI will not change that over the next three to five years either. So amid all the upheaval of change, personal contact will remain the constant.”