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
Mike Cautillo
6mo
Albeit great returns & opportunities exist in P/E, I can see it becoming an overcrowded trade in future given the amount of capital at FO disposal plus on top of existing investors. Whereby if not diligent, too much capital is incentivized to chase private equity just to be in P/E & subsequently over inflating valuations yet diluting quality of ideas/competition. Not much different than what we saw emerge in 0%/easy credit environment.
Eliott Collin
6mo
Family offices definitely understand the higher return that can reside in the right private equity investment. What are the PE strategies they value the most in your opinion?
It's a sea change across PE in general as the industry starts switching to a more permanent capital model - better outcomes for everyone IMO, will be interesting to see what the industry does if/when rates drop. Definitely a model more amendable to family office preferences though
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6moIt really boils down to portfolio diversification. The best way to manage risk while still staying profitable can only come from portfolio diversification.