There’s no denying that the family office channel is growing at a rapid rate. The number of U.S. family offices has grown to at least 3,000 with investments of $1 trillion to $1.2 trillion, according to Real Assets magazine. With the growth of the family office channel, Real Assets magazine asked a handful of executives involved in various aspects of family office investing to give a brief answer to this question: What are the latest investment trends among family offices?
Among the executives interviewed was WE Family Offices CEO Mel Lagomasino, who commented on the trend of families looking for opportunities in private markets.
“We are witnessing a significant increase in the allocation by family offices to nontraditional assets,” Lagomasino told the publication. “These allocations span the spectrum from venture capital to private credit. One can clearly see this trend in the ever-larger funds being raised by the traditional private equity funds. The rationale for this trend derives from families, as they solve their income and growth needs, seeing more opportunity in the private markets and express a willingness to trade liquidity for returns.”
She also offered a word of caution for investors considering nontraditional assets.
“Caution is warranted when considering these types of investments and assets, as they present additional complexity and illiquidity,” she explained. “That illiquidity and the fact that most of these investment commitments are for multiple years, require the investor to know the character of the general partner.”
To learn more, see the full Real Assets article here.
About Real Assets
Real Assets is published by Institutional Real Estate Inc. (IREI). Founded in 1987, Institutional Real Estate, Inc. (IREI) is a global media firm recognized as a critical nexus for the sharing of industry intelligence, knowledge and insights on the institutional real estate and infrastructure market- places through its publications, events and consulting services. IREI publishes a diversified portfolio of news publications, special reports and investment guides for the benefit of the global institutional real estate investment community. Each publication provides subscribers with news, insights and perspective on the trends and events shaping the investment landscape in private equity real estate.
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