In the previous posts in our Family Office Series, we have examined, among other topics, how family offices are structured and the pros and cons of forming a family office.
For the final installment of our Family Office Series, we are highlighting current trends in the world of family offices. Here are several family office trends to watch:
- Instead of investing through private equity funds, family offices are making direct investments in deals (either alone or in combination with private equity funds or other family offices) with increasing frequency.
- Family offices are teaming up with other family offices to buy entire companies with the intent to hold and operate them for the long term.
- Family offices are engaging in impact investing—investments that are intended to make a profit and also have a positive social or environmental impact. A recent Financial Times survey indicated that family offices allocate on average 17 percent of their assets to impact investing.
- Family offices are forming formal and informal networks with other family offices to share information about deal flow, pool cash for “club-deal” investments, and discuss investment strategies.
- Investment banks, private equity funds and professional service firms are increasingly catering to family offices and forming dedicated teams to serve family offices.
- Family offices are attracting talented executives from private equity funds, hedge funds and investment banks.
- Some family offices are funding medical research and raising awareness for diseases and conditions which afflict one or more family members.