Where will the ultra-wealthy invest?

Private equity and infrastructure will become the most popular investment areas for ultra-high net worth individuals and families, according to a member of a leading multi family office.

Rick Pitcairn, chief investment officer of US-based Pitcairn and a founding member of Wigmore Association, told CampdenFB: “We are convinced that UHNW investors will increase allocations to various kinds of private equity opportunities over the coming months.”

He added: “The nature of these investment assets – long-term, low-risk and usually carrying significant dividend components – is very attractive to high net worth families.”

Rick’s comments are in line with the findings of a recent survey conducted by Grant Thornton and Prince Associates. According to a report in Financial News, the study found 86% of the 139 family offices polled planned to up their commitment to private equity.

Pitcairn, set up by Rick’s family in 1923, is focusing specifically on using private equity to invest in energy, he said – “we think this will present multiple investment strategies over the coming years”.

But he remained cautious on returns on equity. “It is safe to say that [we] feel that equity returns for the foreseeable future won’t match the historical averages,” he said.

Wigmore Association, set up last year by Pitcairn along with five other family offices to share investment resources and research, also wants to add more members. Last month, Brazil’s Turim Family Office & Investment Management joined Wigmore, becoming the first emerging market family office to be part of the group.

“Wigmore is looking to add one or two more multi family offices over the next one or two years,” said Rick. The group is eyeing family offices in India, China and the Middle East, he added.

Current members of Wigmore include Australia’s Myer Family Company, Germany-based HQ Trust, Northwood Family Office from Canada, US-based Progeny 3 and the UK’s SandAire.