Family Office Investment Grows 73%

Read why there's an estimated $88million per family office allocation in 2019

“According to research by Campden Wealth, alternative investments now comprise nearly 46% of family portfolios, with real estate (17%) and private equity (22%) the most significant contributors.” Also “private equity are expected to rise 73% between 2017 and 2019. This results in an average rise from $51 million per family office allocation in 2017 to an estimated $88 million in 2019.” Also, here’s a list of additional insights from Camden’s report?

“91% of family office private equity investments met or out-performed expectations in the last 12 months. Here is a recap of some of the top insights.

  1. "The average return stood at 14%  in 2017, an expected 14% at year end 2018, but a rise to 18% in 2019.

  2. Healthcare is currently the most popular sector for a family office' private equity fund investment.

  3. 53% of all private equity fund investments are put towards growth capital deals while 28% are allocated towards leveraged buyouts and 19% venture capital.

  4. 67% of respondents believe that the family offices’ demand for co-investing opportunities will increase over the coming 12 months.

  5. 57% of family offices states that the "lower middle markets" offer the best opportunities for co-investment deals.”

With this in mind when it comes to allocation strategies, finding the right opportunities in alternative asset classes is critical.

Forbes lists some interesting trends for family offices in 2019. Here’s a list of them:

1. Changing Investment Strategies

2. Softer performance metrics opposed to confusing kpis

3. Consolidated Analysis And Reporting

4. Cybersecurity

5. Ethics

6. Transparencey

7. Succession

8. Rising Costs

9.Talent

10.Digitization”

18 months ago, many funds were spending time with family offices with blockchain 101 education. Now many of these family offices have a strong understanding of the technology based on their own personal research.

One interesting family office in the middle east is Dubai royal Sheikh Saeed bin Ahmed Al Maktoum who is backing cryptocurrency fund manager Invao as the Liechtenstein-based firm seeks to attract more investors from the United Arab Emirates.