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Family Offices Look To Increase PE Holdings, Including Going Direct

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April 11, 2013

The majority of family offices are convinced of the industry’s merits, according to a recent poll conducted at an industry event in March, according to a report in unquote. The poll was conducted by Investec Family Office Intelligence. It revealed that nearly 60% are considering investing in private equity. This is inline with another survey we covered earlier in the DealMarket Digest.

 

The unquote survey found that only 54% plan to invest through a fund manager and the majority 59.5% have plans to back businesses directly. Not all family offices are set up for direct deals, says the report, highlighting the need for a variety of skills to do the due diligence, make the investments and monitor them.

 

Direct deals are attractive because they allow the family office to retain control over how capital is allocated, said experts in the report. If the family office can see dealflow and make decisions on a case-by-case basis, it creates a choice about whether or not to invest in funds, with management fees and lockups, or directly in viable in companies.

 

The report says that family offices account for roughly 2% of investors in private equity, but roughly 4% of private equity secondaries sales.

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