Family Office and endowments plans are ranked as the top two most active PE investors, reports Financial News. Typically family offices account for only 5% of the PE industry’s total fundraising universe with an average of 24.5% of their assets under management committed to the asset class as of June 2012. This is nearly double that of endowment plans, according to data provider Preqin.
The importance of family offices to PE fundraising has been growing. According to a report by professional services firm Grant Thornton, a large proportion of buyout fund managers expect to see family offices more heavily represented in their next funds as uncertainty continues in the core institutional investor market. This is expected to be particularly strong in Europe.
Some of the larger family offices have teams of 10 to 15 people dedicated to private equity and invest up to 70% of their net worth in the asset class, according to advisers. These include family offices such as Brenninkmeijer and Souter. No other names were disclosed in the report because “it’s still quite a private club area of capital raising”.