As a result of a survey that found that single family offices (SFOs) are “eager” to build up their allocations to private equity, Grant Thornton issued some guidelines on fundraising and targeting SFOs.
The aforementioned survey found that during the first quarter of 2012, nearly 90% of SFOs are expected to increase their dollar investment in private equity over the next three years. The figure is impressive considering that 109 of the SFOs surveyed were already investing USD 8 billion during 2009. (Only 30 out of the 139 SFOs that responded were not investing in private equity at this time.) The report is a good one and worth reading. Here is just a small example. (Image source: Grant Thornton)
Key criteria for an SFO decision on GP investments identified by Grant Thornton.
– Appropriateness for the family’s portfolio
– Expertise of the professional investors
– Track record
– Significant financial commitment by the professional investors
– Reputation of the financial institution