Net Worth Statement
Last updated 17 July 2026
A net worth statement is a consolidated view of assets minus liabilities at a stated date. For a family, it can include cash, listed portfolios, private funds, operating companies, property, collectibles, loans, and other obligations across personal names, trusts, partnerships, and holding companies. It is similar to a balance sheet but is designed around the family's ownership perspective.
The scope must be explicit. A statement for one principal, a married couple, a branch, or the wider family can produce different totals. Beneficial interests and assets controlled through trusts should be presented in a way that does not imply unrestricted personal ownership.
Why it matters for family offices
The statement provides a reference point for allocation, concentration, liquidity, borrowing, insurance, succession, and family reporting. It can reveal that apparent diversification rests on one underlying company or that a large asset is matched by debt and guarantees. It also distinguishes broad net worth from assets actively managed under an investment mandate.
Accuracy depends on ownership mapping and valuation context. Public prices may be current, while property appraisals and private fund NAVs may be older. Liabilities need accrued interest and currency treatment, and intercompany balances should not inflate the family total. A useful statement shows source and date rather than presenting every number as equally precise.
How it shows up in practice
Suppose a family asks for its net worth after a business sale. Cash proceeds sit in two trusts, a holding company retains a minority stake, several properties have mortgages, and the family has guarantees related to a private investment. The office maps each asset and liability to its owner, eliminates intercompany amounts, and converts values using a stated reporting currency and date.
The report shows $210 million of net worth, but also identifies $35 million of illiquid value and $12 million of contingent guarantees separately. When a private fund later updates its NAV, the total changes with a traceable source. A spreadsheet can calculate the arithmetic, but disciplined consolidation is what makes the number explainable and safe to use.
Related terms
Consolidated Reporting
The aggregation of all of a family's assets, liabilities, and performance, across every custodian, entity, currency, and asset class, into a single coherent set of reports. It answers the deceptively simple questions of what the family owns, what it is worth, and how it is performing. Consolidated reporting is the core deliverable of most family offices and the primary function of family office software.
Wealth Mapping
The exercise of documenting everything a family owns, where it is held, through which entities, and who controls and benefits from it. A complete wealth map covers bankable assets, private investments, real estate, collectibles, liabilities, and the legal structures connecting them. It is the foundation for consolidated reporting, succession planning, and crisis readiness, and its absence is often only discovered when a principal dies unexpectedly.
Assets Under Management (AUM)
The total market value of assets that a family office, wealth manager, or fund manages on behalf of its clients or family. AUM is a standard measure of scale and often determines fee levels, access to institutional products, and regulatory obligations. For family offices, consolidated AUM across all entities and custodians is the starting point for meaningful oversight.
Bankable vs. Non-Bankable Assets
Bankable assets are securities and cash held with financial institutions and visible on custodial statements, while non-bankable assets include private equity, real estate, art, yachts, and operating businesses held outside the banking system. Non-bankable assets often represent well over half of UHNW wealth. Capturing both in one consolidated view is a defining requirement of family office reporting.
Holding Company
A company created to own shares in other companies, investments, or assets rather than to trade in its own right. UHNW families use holding companies to consolidate ownership, centralise governance, manage tax exposure, and simplify succession. A family's wealth is often held through layers of holding companies, trusts, and partnerships that reporting systems must map accurately.
Further reading
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