Family offices turn to private equity, study
More than six in 10 family offices want to increase their investments in the private equity market this year, but hedge funds are proving less popular.
These are the main findings of a survey of 32 single and multi family offices, managing an average of more than $500 million (€382.9 million), by London-based family office adviser Somerset Capital.
According to the research, more than half of participants plan to decrease their allocations to cash and 63% want to invest directly in businesses.
European and US companies in the business services and consumer goods sectors are attracting the most interest, followed by firms operating in the healthcare, manufacturing and technology industries.
“The private equity portion of their portfolio has been the best performing over the last 10 years,” Jim Miller, managing director of Somerset Capital, told CampdenFO.
In contrast, amid “problems” in hedge funds, just a quarter of family offices plan to increase their allocation to this type of investment.
