Family Offices Positive on PE ; Somerset Capital Survey


March 21, 2013

In January 2013 Somerset Capital conducted its third annual survey of the family office investors in its network in order to determine their investment plans for the year ahead. A total of 51 family offices participated in the survey, of which 75% were single family offices (SFO). The investors in question were predominantly located in the UK and Europe.

Key findings

  • Around half of the participants, over the course of the next twelve months, plan to increase their allocations to real assets (50%), equities (48%), and private equity (46%).
  • A similar number plan to decrease their allocations to bonds (52%), and cash (43%).
  • Over the next two years, a majority of the investors surveyed stated an interest in continuing to back existing managers through re-ups, new managers, and to invest in co-investments and direct investments. 39% stated an interest in secondary transactions.
  • The participants demonstrated a strong preference for growth equity transactions, with 67% showing an interest, compared with 60% who were interested in mid-market buyouts, 48% in secondary, 44% in turnaround and 37% in venture capital. Only 15% showed interest in large buyouts.
  • Geographically, 83% showed an interest in private equity investments in Europe, versus 60% in the US and 40% in emerging markets, although it should be borne in mind that for the most of these investors Europe is the home market.
  • 19% of investors had a preference for control deals, versus 26% non-control, with 56% showing no preference. (Image source: Somerset Capital)
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