From CNBC: 2024-06-10 08:47:38

Family offices are increasingly acting as private equity funds, investing directly in companies. 62% made at least 6 direct investments last year. In 2024, 71% plan to make same or more investments. With family offices tripling since 2019 and total assets reaching over $6 trillion, private markets could see a significant shift.

Family offices, founded by entrepreneurs, provide expertise and capital to portfolio companies through direct investments. They offer patient capital at a time when banks tighten lending and private equity deals decrease. Deals in private markets can yield higher returns than public markets, attracting family office investment.

Co-investing with private equity firms can reduce fees for family offices. Challenges include limited industry expertise and difficulties in due diligence. Smaller family offices seek help from larger firms and advisors for proper vetting. Two-thirds conduct internal due diligence, while almost half consult with investment advisors.



Read more at CNBC: Family offices are planning big investments in private companies