One of the biggest gaps in the wealth industry is the management of ultra-rich families’ so-called off-register assets, such as art. According to an interview with SYNTHESIS partner Tatiana Collins, this is an area very few private banks are likely to pursue.
Although much of the wealth industry’s focus has been placed on managing traditional financial assets like stocks and bonds, a significant portion of high net worth (HNW) and ultra-high net worth (UHNW) families’ riches have been tied up in more esoteric passion assets, including fine art, classic car collections, wine collections, and more. Among these “off-register assets” – defined as the portion of wealth that sits outside of the formal balance sheet – art alone represents approximately 10% of UHNW families’ overall net worth, according to Deloitte’s Art and Finance Report 2025.
“Family real estate and other lifestyle assets add materially to this. The off-register assets likely represent 12-20% of total wealth for HNW individuals and potentially higher for UHNW clients,” said Tatiana Collins, partner and head of financial services at business consultancy SYNTHESIS, in an interview with Global Private Banker.
Wealth transfer as the trigger for liquidation
Such off-register assets are entering the limelight due to an intergenerational wealth transfer – estimated by Cerulli Associates to be around USD 84 trillion by 2045 – that is expected to trigger a shift.
“The generation inheriting these assets does not share the same emotional attachment as their family members,” Collins explained. “Collectables, family real estate and lifestyle assets are likely to be liquidated fastest once they transfer to a generation with different preferences and no memory of their acquisition.”
Five capabilities required
In order to capitalise on the off-register asset opportunity, Collins highlighted five capabilities required.
First is specialist valuation expertise to accurately value and assess provenance, condition and secondary market potential. Second is operational infrastructure to connect private markets data with lifestyle asset records and reconcile intermittently in line with valuation cycles. Third is a value proposition to manage, buy, sell, and enhance such assets once they come under management. Fourth is a governance framework that creates accountability for an asset and its appreciation in value over time, compensating for constrained liquidity and long holding periods. Fifth is advisor training and awareness on how to manage assets within the investment goals framework.
Top challenges: valuation methodology, legal complexity and more
Despite the opportunities, Collins underlines a plethora of challenges in dealing with off-register assets.
This includes the lack of reliable independent valuation methodologies, especially for unique items. Legal issues around ownership structures, inheritance and cross-border taxation is also very complex.
In Italy, for example, new legislation is being proposed to force the declaration of family gold and jewellery collections, provide a certificate on ownership and pay taxes. Failure to authenticate could result in outright confiscation.
Who will close the gap?
Currently, there are limited services providers with the necessary capabilities and solutions to service this market. Collins notes that specialist wealth managers and multi-family offices who can build or acquire the full capability stack from valuation expertise and private markets data infrastructure are best placed to offer a compelling proposition.
On the other hand, she said that the private banking industry is broadly not well-positioned to close this gap.
“Most private banks have neither the capability nor the commercial incentive to manage these assets directly. The business model of a traditional private bank is built around AUM fees on managed portfolios,” Collins added. “Lifestyle assets have been seen as ‘fiddly’ to manage, with no clear path for a traditional wealth manager to generate fee income quickly, unless they are actively managed or transacted.”
