It took decades of grit, deal-making and sacrifice for many of Asia’s first-generation entrepreneurs to build their family empires. Yet despite the scale of these fortunes, history shows that most family wealth doesn’t survive beyond the third generation.
A 20-year study by US consultancy The Williams Group, involving over 3,000 wealthy families, found that 70% lost their wealth by the second generation, and 90% by the third.
This should raise alarm bells in Asia, where a massive generational wealth transfer worth US$5.8 trillion is underway—and many families are woefully underprepared.
Navigating Wealth Transfer Complexities
One of the key challenges during this transition is how the older generation can transfer their wealth to the next without jeopardizing family harmony. There are likely going to be differing views on how to run the family business or preserve the family legacy.
These complexities have reshaped the role of wealth managers. Today, wealth management goes beyond growing a portfolio—it’s about tailoring financial plans to the needs of each key family member. Additionally, high net worth (HNW) families are increasingly demanding sophisticated investment products and strategies.
Wealth managers are also the “bridge” that connects each family member, helping HNW families to better understand their assets, capital structure, values and vision for the future. All of this will help HNW families structure their wealth to meet their goals.
Jeffrey Yap, Managing Director and Regional Head of Wealth Management at Hong Leong Bank (HLB), says families building generational wealth often grapple with “complex financial considerations like intricate tax laws and sophisticated estate planning.”
He adds, “Beyond finances, they face the delicate task of managing family dynamics, which include fostering communication, preventing entitlement and preparing the next generation for responsible stewardship. Protecting privacy and reputation also becomes a significant concern amid their affluence.”
A Strategic Alliance With A Shared Philosophy
In 2025, HLB, the Malaysian financial services powerhouse with a strong regional presence, joined forces with Lombard Odier, Switzerland’s oldest private bank, in a strategic alliance to serve the growing wealth segment under HLB Private Bank, the bank’s private banking arm. This collaboration combines HLB’s extensive understanding of the Southeast Asian market, including its operations in Singapore (HL Bank Singapore), Hong Kong, Vietnam and Cambodia, with Lombard Odier’s two centuries of global wealth management expertise.
Commenting on this partnership, Yap says, “We want to be our clients’ strategic partner in legacy building because for HNW families, wealth isn’t just about assets, it’s about a lasting purpose and future generations.”
Vincent Magnenat, Lombard Odier’s Asia Group Regional Head and Global Head of Strategic Alliances, says the partnership with HLB was the right fit as they share common wealth management vision and values.
“We resonate with HLB’s 120-year legacy and culture of innovation and technology adoption in financial services,” says Magnenat. “Our strategic alliance provides a holistic, ‘glocal’ proposition—strong global expertise paired with local insights and perspectives to empower leading onshore HNW clients to achieve their financial ambitions and aspirations.”
Yap says, “We hope the partnership through HLB Private Bank will benefit clients with thoughtful, responsible and compelling solutions for multi-generational wealth transfer and legacy planning, drawing on Lombard Odier’s expertise and first-hand experience.”
