Family offices are increasing their interest in private equity and co-investing, but what this means for investment logistics is the focus of a new survey launched by Campden Research today.
Campden researchers are following-up last year’s popular Private Equity and Co-Investing for Family Offices report with its 2018 edition and are calling on family office leaders to share their insights in a quick and confidential survey.
From determining the level of exposure to secondary market deals to sourcing co-investment partners, the private equity and co-investing landscape was peppered with decisions to be made.
“By capturing insight from family office executives on topics such as drivers for co-investing and criteria for selecting fund managers, family office professionals can better understand what it means to enter and invest within the private equity and co-investing space,” Dr Rebecca Gooch, director of Campden Research, said.
In a returning partnership with leading private equity firm KKR, the Private Equity and Co-Investing for Family Officesreport was valuable to families regardless of their level of exposure to co-investments; whether in the early stages of exploration or revisiting an already-established strategy.
Last year’s report surveyed 242 respondents, with average assets under management of $759 million, and included a series of in-depth interviews. The findings from the 2017 report revealed the myriad of factors that family offices will do well to consider when co-investing.
Gooch said one of the most important factors for families was determining how to enter the co-investing space.
“Co-investing alongside fund managers or other family offices can be a learning opportunity for those looking to build confidence and develop the skills necessary for co-investing,” she said.
“By easing into the co-investing space instead of jumping right in, the family office can set themselves up for a suitable level of involvement. Investing passively can help family offices achieve consistent deal flow and diversification without having to take full control over all aspects of a deal.”
This, along with several other factors, will be explored in this year’s survey to obtain a granular view of private equity and co-investing. Recipients will also appreciate the ability to benchmark performance alongside their peers and to identify the core industries in which co-investments are made.
Jim Burns, head of KKR's Individual Investor Business, said private equity continues to be an important contributor to the overall returns of a diversified portfolio for family offices.
"Co-investing in private equity, when done well, serves as a nice complement to fund investing," Burns said.
"It can serve to lower the fee burden of the asset class and, assuming good asset selection, can increase returns as well. In addition, certain family offices appreciate the ability to diligence a single asset versus only investing in the blind pool structures that private equity funds represent."
The survey takes only 15 minutes to complete, with participation treated with strict confidentiality and anonymity. Participants must work within a single family office or multi family office. Those who meet the criteria can take part by clicking here.
The Private Equity and Co-Investing for Family Offices2018 report will be revealed to attendees of Campden Wealth’s milestone 20th anniversary European Family Office Conference, in London on 6-7 November, 2018.