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.
- 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)