Dublin, November 17, 2023 (GLOBE NEWSWIRE) — The report “Global Trust and Corporate Service Market (by Alternative Asset, Segment, & Region): Insights and Forecast (2023-2028)” has been added to The Offer.

The global trust and corporate services market is expected to reach a value of USD 11.96 billion in 2023, growing at a compound annual growth rate (CAGR) of 4.98% during the forecast period.

Trust and corporate services include a wide range of administrative offerings designed to help clients set up, organize and monitor their financial and investment activities. This sector is primarily focused on stable countries with strict regulatory frameworks.

Several factors have contributed to the growth of the trust and corporate services market, including highly skilled workforce, delivery of high-quality services, fostering personal client-service provider relationships, and the ongoing trend toward globalization. Expected drivers of market expansion include increasing household affluence, tighter corporate and tax regulations, and increasing outsourcing of administrative functions by private equity and real estate funds.

The global trust and corporate services market is fragmented. The major players include TMF Sapphire Midco BV (TMF Group), M&T Bank Corporation (Wilmington Trust), Intertrust Group, Tricor Group, JTC plc, American Stock Transfer & Trust Company, LLC, Cafico International, Apex Group Ltd. (Sanne Group), IQ EQ Group Holdings Sa rl, Vivanco & Vivanco, Ocorian and Vistra.

North America currently dominates the trust and corporate services market, driven by a thriving technology sector that has driven significant wealth growth. This region is expected to witness increasing demand for trust and corporate services, particularly due to the growing number of high net worth individuals (HNWIs).

Asia Pacific is expected to see the strongest growth in the coming years. The private equity and real estate fund sectors are expected to generate strong demand for trust and corporate services due to industry growth and increasingly complex reporting requirements that are driving the outsourcing of fund-related services.

In addition, the growing need for regulatory compliance is a major factor supporting the expansion of the trust and corporate services market in Europe. Within Europe, the UK currently holds the largest market share and is expected to be the fastest growing region in the near future.

Driver, challenge and trend analysis

Driver: Growing opportunities in pension assets

The main motivation for the industry is likely to be the policy changes in developed and developing countries aimed at bringing a larger proportion of their workforce into defined contribution pension plans.

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This emerging financial segment, coupled with increasing levels of trust and outsourcing of corporate services, is expected to provide great opportunities for various players to participate and generate new customer profiles by gaining presence in another end market that is expected to experience structural growth.

Challenge: Unstable globalization and foreign direct investment

With the advent of globalization, many widely accepted and well-integrated policy frameworks and organizational structures have emerged. This has increased the inflow of foreign direct investment worldwide. However, in recent years, foreign direct investment has shown a fluctuating trend.

The trust and corporate services market is increasingly influenced by increasing globalization and foreign direct investment. Due to fluctuations in foreign direct investment, trust and corporate services organizations may face certain challenges in expanding their business in their home countries as well as abroad.

If net foreign direct investment inflows continue to decline, confidence and the business sector could face major hurdles to growth over the forecast period.

Trend: Political and economic ambiguities

Both political and economic uncertainties are felt around the world. Due to these changes, the number of clients (from organizations and companies to individuals and HNWIs) requiring trust and corporate services is also increasing. Given the current situation, clients are demanding secure and innovative solutions for their wealth management.

In addition, high net worth individuals (HNWIs) currently own assets across borders and with increasing political and economic instability around the world, it is becoming increasingly important for the market to provide a wide range of wealth allocation solutions for these HNWIs. In short, the market is expected to see increased demand for their services to meet complex client needs.

The COVID-19 analysis

The COVID-19 pandemic has caused a significant decline in business activity and, in turn, a decline in individuals’ income. As a result, demand for trust and business service providers has declined as the number of high-income individuals has declined sharply.

This has led to a decline in the demand for experienced personnel required to manage finances such as wealth structuring, tax filing, administrative services, and more, thereby hampering the overall growth of the market in 2020. However, in 2021, the market witnessed growth as business activities gradually resumed due to the decline in COVID-19 cases.

Segments covered

In terms of segments, the report provides insights into the trust and corporate services market across four segments: Corporate, Fund SPV, High Net Worth Individuals and Others.

Corporates accounted for the largest market share, while SPV funds are expected to be the fastest growing segment in the coming years. Demand for services by corporates has continued to grow in recent years due to the value-added administration services and the high demand for support services provided by trusts and corporate service providers, such as corporate advisory services and compliance services.

Funds Special purpose vehicles (SPVs) have flourished throughout history due to worldwide economic growth and increasing globalization. This has necessitated the outsourcing of fund administration along with basic trust and corporate services, increasing the demand for funds.

The report also provides a breakdown of the market based on alternative assets.

Alternative investments typically refer to investments that fall outside the traditional asset classes that most investors typically turn to, such as stocks, bonds or cash investments. A rebound in the global alternative investment market is attributed to the strong performance of capital markets, driven by loose monetary policy and significant GDP growth.

Market dynamics

Growth drivers

• Rising global GDP per capita

• Growing global HNWI wealth

• Growing opportunities in pension assets

• High customer retention rate

• Increasing number of state investors

• Upswing in outsourcing

challenges

• Unstable globalization and foreign direct investment

• Failure of the customer relationship

• Shocking global consumer sentiment

• Increasing cyber threat

• Brexit aftershocks

Market trends

• Changes to the regulations

• Political and economic uncertainties

• Trust and good corporate conduct

• Low barriers to entry

• Improvement and further development of the technology infrastructure

• Strong culture of excellence

Company profiles: Business overview, business segments, sales by service area, business strategies

• Intertrust Group

• JTC plc

• TMF Sapphire Midco BV (TMF Group)

• M&T Bank Corporation (Wilmington Trust)

• Tricor Group

• American Stock Transfer & Trust Company, LLC

• Vistra

• Cafico International

• (Sanne Group)

• Okorian

• IQ EQ Group Holdings Sa rl

• Vivanco & Vivanco

For more information about this report visit https://www.researchandmarkets.com/r/spjje3

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