CPI operates through its wholly-owned Hong Kong-based subsidiary Carret Private Capital. The co-operation extends to several areas, such as portfolio management, research, business development and operational optimisation, the groups said in a statement today. Financial terms were not disclosed.

The firms expect that the merger will produce "new business and investment opportunities in the near future".

For the time being, Carret Private and LCI, which together have more than $2 billion in assets under management, will continue to operate in their respective markets under their existing name brands.

“The merger of our two firms will help us to continue the strong growth that we have achieved over the last decade. I am delighted to work with Carret Private. I have known the CEO Kenny Ho for over 13 years when we were both founding members and executive board members in establishing Bank Julius Baer’s presence in Asia," Wilfried Kofmehl, founding Partner of LCI, said.

The family office sector is relatively small in Asia compared with regions such as North America and Europe, but growing at double-digit percentage rates. With so much Asian business in family control, the rise of an FO sector is a natural progression.

Ho added: “North Asian clients are increasingly looking for investment and custodial solutions in Southeast Asia. We believe that given its strategic positioning in Singapore, LCI is perfectly situated to enhance Carret Private’s overall value proposition. Additionally, Carret Private and LCI have a complimentary range of investment solutions.”