Knight Frank Targets US Luxury Market with Boutique Alliance Strategy

BEVERLY HILLS, CA – January 20, 2026 – In a significant strategic move, London-based global property consultancy Knight Frank has announced a new alliance with Carolwood Estates, an elite boutique brokerage in Beverly Hills. The partnership marks a deliberate and ambitious re-engagement with the U.S. real estate market, signaling a pivot toward a new model of global-local collaboration in the ultra-luxury sector.

This alliance is the first step in Knight Frank's broader plan to expand its footprint across key American wealth centers. By choosing to partner with a specialized, high-performing local firm rather than pursuing a large-scale acquisition, the 128-year-old consultancy is making a clear statement about its future strategy: prioritizing deep-seated local expertise and client-centric service over sheer size. The move comes as the U.S. real estate industry navigates a period of significant change, creating opportunities for new competitive models to emerge.

A New Blueprint for a Disrupted Market

The timing of the alliance is no coincidence. The American real estate landscape is in the midst of what Knight Frank's leadership calls “major disruption,” a period shaped by several converging factors. Recent shifts in brokerage network structures, influenced by nationwide settlements over commission rules, have altered traditional business practices. Concurrently, fluctuating interest rates and evolving buyer priorities have created a more complex and nuanced market environment, particularly at the high end.

In this climate, Knight Frank is betting on a “quality over scale” philosophy. Paddy Dring, head of global prime sales and Knight Frank's Private Office, emphasized the strategic nature of the decision. "In a time when the real estate landscape is experiencing major disruption, our new alliance represents a deliberate and defining choice," Dring stated. "We believe the future belongs to firms that uphold excellent standards of client privacy and combine the strength of a global platform with the agility, intimacy, and deep local expertise of a boutique brokerage. This alliance sets us apart; it’s about quality over scale and partners that truly understand their markets."

This approach aims to directly address the needs of a new wave of ultra-high-net-worth (UHNW) clients. The market has seen a surge in demand driven by a massive intergenerational wealth transfer and global geopolitical instability, which has positioned the U.S. as a safe haven for capital. These discerning international and domestic buyers increasingly demand discretion, personalized service, and unparalleled market insight—qualities often best delivered by nimble, locally entrenched firms.

Combining Global Reach with Boutique Agility

The partnership creates a powerful synergy between Knight Frank’s vast international network and Carolwood Estates’ formidable local dominance. Knight Frank operates from over 600 offices across 50 territories, offering clients access to a truly global marketplace. Carolwood Estates, though boutique in its approach, is a powerhouse in the Los Angeles luxury scene.

Founded by CEO Drew Fenton, Carolwood has established itself as the preeminent brokerage for the highest segment of the market. In 2025 alone, the firm’s 200 associates closed an impressive $5 billion in sales. Demonstrating its deep connections and ability to operate with discretion, nearly 30% of this volume was conducted through off-market transactions. Further cementing its top-tier status, Carolwood represented both the buyer and seller in the two highest residential sales in Los Angeles in 2025, each closing for a staggering $110 million.

This proven track record provides Knight Frank with an invaluable and trusted foothold in one of the world's most important luxury property markets. For Carolwood, the alliance opens up a new global channel for its clients and listings.

"We are beyond excited to partner with Knight Frank and bring Knight Frank's global audience to Los Angeles and the West Coast," said Drew Fenton, CEO of Carolwood Estates. "Our level of clientele and the significance of the properties we represent are the perfect fit for such a legendary brand. We look forward to a long and meaningful relationship."

Redefining Service for the Ultra-Wealthy

A central component of the alliance is providing Los Angeles’ UHNW clients with access to Knight Frank's Private Office. This specialist team operates as a dedicated, end-to-end advisory service for the firm's most valued clients, which include over a third of the world's billionaires. The Private Office offers a single point of contact to connect clients with global property opportunities, investment advice, and portfolio management across both residential and commercial assets.

The combination of this bespoke global service with Carolwood's reputation for unmatched service and client discretion is designed to set a new standard of excellence. Rupert Dawes, global head of residential at Knight Frank, noted the opportunity to innovate. "Amid the ongoing disruption in the US real estate industry... we see a clear opportunity to redefine what excellence looks like," he explained. "Our network isn't about scale, it's about creating meaningful connections that translate into real results for every client, wherever they operate."

This partnership directly challenges established global luxury brands in Los Angeles, such as Sotheby's International Realty and Christie's International Real Estate, as well as powerful local boutiques like Hilton & Hyland and The Agency, by offering a unique blend of global connectivity and localized, high-touch service.

A Strategic First Step in US Expansion

Knight Frank's leadership has made it clear that the Carolwood alliance is not an isolated venture but the foundational move in a much larger American expansion. The firm is actively pursuing similar partnerships with best-in-class boutique brokerages in other key U.S. wealth markets.

"Our commitment to the Los Angeles market through Carolwood is the first step in our ambitious growth plan to partner with the very best brokerages across key US wealth markets," confirmed Paddy Dring. "We are presently exploring further opportunities in New York, Miami, Palm Beach and Aspen."

This methodical, partnership-driven strategy marks a significant recalibration for Knight Frank in the U.S., following the end of its 15-year alliance with Newmark in 2021. By carefully selecting local champions in pivotal markets, the firm aims to build a network that is both globally integrated and deeply specialized, positioning itself to thrive in the new era of luxury real estate.