Mel Lagomasino Comments to Real Assets on Families’ Growing Interest in Non-Traditional Assets
December 28, 2017
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.
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