Chad Fox’s Post

We have worked with family offices for almost a decade and we have heard the direct investing rhetoric 10x over the past several year. Here’s some advice to family office managers regarding direct deals. 1. Do them… cautiously 2. Do them with a fund manager you trust and can leverage their work 3. Don’t do them on your own unless your willing to take the risk, put in the work, and dilligence the hell out of them https://lnkd.in/eAzTfU5b

Transforming the Investment Landscape: Family Offices Leading the Charge in Direct Investments! The investment world is witnessing a transformative trend, with family offices at the forefront. Insights from the latest BNY Mellon Wealth Management survey (see link below) reveal key trends: - 62% of family offices made at least six direct investments in the past year, with 71% planning to increase this number in 2024. - Family offices, founded by entrepreneurs, provide not only capital but also expertise and management advice, making them valuable partners for private companies. - Private companies are turning to family offices for patient capital and long-term investment horizon, reshaping the private markets. - Family offices co-invest alongside private equity firms, reducing fees and increasing carried interest payments. - Challenges like due diligence are met with support from wealth management firms and deal advisors. As someone deeply involved in family office investments, I view this trend as a game-changer. Direct co-investments offer superior returns and drive growth in innovative private companies through capital and expertise. The strategic shift towards direct investments showcases the adaptability of family offices, reshaping the investment landscape. It's a thrilling time for both family offices and PE, full of opportunities to seize. If you're intrigued by this topic and want to explore how your family office or PE firm can leverage direct co-investments, let's connect and discuss the opportunities ahead. #InvestmentTrends #FamilyOffices #PrivateEquity #DirectInvestments #WealthManagement #PrivateCompanies #BNYMellon #InvestmentStrategy Read more:

💵 Family Offices deployed direct investment to at least six private company investments last year. With the trend continuing for the foreseeable future. 🚨 * A majority of family offices made at least six direct investments last year, where they buy a stake in a private company or provide lending, according to a survey by BNY Mellon Wealth Management. * Investing directly allows them to contribute their expertise and management advice to the portfolio companies, as well as their capital. * Private companies are increasingly attracted to family offices as banks tighten lending and private equity firms do fewer deals. #money #investments #familyoffice #privateequity #privatecredit

Family offices, are diving deeper into private companies. Back in the early 2000s, these investments made up just 5% of their portfolios. Today, they account for 15-20%. The allure? Higher returns than the public markets. To find out more, please read below: https://lnkd.in/gjdXYSAq #PrivateMarkets #FamilyOffices #CNBC #WealthManagement #FinancialTrends #PrivateEquity #Investing

Why Family Offices Are Embracing Private Equity. #castlefamilyoffice #barrons Family offices, which manage money for the ultrawealthy, are embracing private equity, with some 40% seeing PE as a “core component” of their strategies in the next two years, according to a new study from investment bank Bastiat Partners and PE firm Kharis Capital. Family offices invest in private markets through direct stakes in companies, funds, and co-investments with PE firms. The PE trend aligns with a September survey from Campden Wealth and RBC Wealth Management, in which family offices said PE and venture capital offered the best long-term risk-adjusted returns, followed by stocks. Some 42% expect more private exposure this year, while 19% see adding exposure to stocks. Where the Money Has Been. Family-office wealth has slowly been shifting from stocks to private equity, cash, andfixed income. Developed-market stocks returned 17.8% on average for family offices last year, notes Campden, compared with 11% for direct PE investments and 7% for PE funds. But, says Bastiat Managing Partner Nader Afshar, public-market outperformance “can sometimes be an indicator that private markets, which tend to lag behind by a few months or more—particularly in less efficient asset classes—may soon follow suit.” Long-term strategies, he says, are a “natural fit for patient capital like family offices.” https://lnkd.in/db4yC8Re

The investment landscape is shifting as family offices go direct in private deals, creating fresh competition for traditional Private Equity funds. 🚀 With niche investments like whiskey aging and litigation financing, family offices are reshaping market dynamics. This trend could impact deal access, fees, and capital flow for PE funds, making the coming years—especially 2025—one to watch. Exciting times ahead!

Family Offices Embracing Private Equity I caught up with a family office principal I really admire and they’re adding a private equity strategy alongside their core private credit strategy. I know at least 3 other families that have the same thesis but in different industries. What it shows me is that family offices have the ability to invest across the capital stack and really understand what risk adjusted returns look like. I’m excited to start working with this family office as their strategies have been consistent performers every year since we met, and yes they showed proof of those returns. F Partners Read The Full Article Here: https://lnkd.in/e_7-wWZU #singlefamilyoffice #familyoffice #familyoffices #privateinvestors #privatemarkets

Family offices are becoming like private equity firms themselves, directly investing in companies instead of relying solely on traditional financial instruments. According to a survey by BNY Mellon Wealth Management, 62% of family offices made six or more direct investments last year, with 71% planning to continue or increase their direct investment activity in 2024. With combined assets now over $6 trillion, this trend is reshaping private markets. While direct investing is not without its challenges, getting help from larger wealth firms and advisors are key for family offices to navigate and thrive. #FamilyOffices #PE #Investments

Family offices are increasingly resembling private equity firms by directly investing in companies, with 62% participating in at least six direct investments last year and 71% planning to maintain or increase efforts in 2024, as highlighted by BNY Wealth. With their numbers tripling since 2019 and assets surpassing $6 trillion, family offices are reshaping industry dynamics by deploying patient capital and industry expertise amid tightened bank lending and reduced private equity activity. Successful direct investments promise higher returns through the illiquidity premium, differentiating them from traditional market investments. They are also exploring co-investment opportunities with established firms to optimize returns and reduce costs. Navigating diverse sectors and conducting thorough due diligence remain challenges, prompting many to seek support from larger wealth management firms and consultants. As significant players in private equity, family offices' influence on investment strategies and market dynamics is poised to grow.