EFSI’s Post

Today there are 8,030 family offices worldwide, managing an estimated $3.1tn in assets. This figure is expected to grow 73 per cent to $5.4tn by 2030, surpassing the current assets under management of the global hedge fund industry ($5tn). The number of FOs is estimated to rise to 10,720, according to Deloitte.

Family offices are also changing how they invest. Instead of the old-school 60-40 stock and bond portfolios, family offices are shifting their money to alternative assets, including private equity, venture capital, real estate and private credit. Family offices now have 46% of their total portfolio in alternative investments, according to the J.P. Morgan Private Bank Global Family Office Report. The largest amount is in private equity, at 19%. Aside from investing in private equity funds, more family offices are doing direct deals, where they invest directly in a private company.

Family Offices Set to Surpass Hedge Funds by 2030 Family offices are projected to grow to $5.4 trillion in assets by 2030, offering ultra-wealthy families privacy, #customisation, and long-term wealth #management solutions. This shift is transforming the #financial landscape and driving #newtrends in alternative #investments. Learn more about how family offices are reshaping the future of finance. Stay informed with the latest updates at The Inspirepreneur Magazine - https://lnkd.in/gYni5HpN #australia #melbourne #theinspirepreneurmagazine

A significant trend I have been following is the growth of family offices. CNBC recently highlighted this shift in their article, “Family Offices Are About to Surpass Hedge Funds, with $5.4 Trillion in Assets by 2030.” Key Highlights: Growing Numbers: The count of single-family offices—exclusive investment and service firms for families with $100 million or more—is projected to increase from 8,000 to 10,720 by 2030, according to Deloitte Private. Asset Growth: Family offices are expected to exceed $5.4 trillion in assets by 2030, more than doubling from $3.1 trillion today and significantly increasing since 2019. Enhanced Services: These offices offer greater privacy, customization, and tailored programs for the next generation, differentiating themselves from traditional wealth management. The rise of family offices is a pivotal trend reshaping the wealth management industry. Expected to surpass hedge funds in assets within the next few years, family offices are becoming more and more important when it comes to fundraising, venture capital firms, private equity interests, and private companies all vying for a share of their growing wealth. You have "private equity giants like Blackstone, KKR and The Carlyle Group are building out their private wealth teams to better target family offices. With such significant assets, these entities are positioned to influence market trends and investment landscapes in transformative ways. https://lnkd.in/gbME83kK #FamilyOffices #HedgeFunds #WealthManagement #AlternativeInvestments

Family Offices Surpass Hedge Funds: A New Power in Wealth Management 🚨 The growth of family offices is reshaping the financial landscape, with assets expected to exceed hedge funds by 2030. Key insights from Deloitte highlight the rise of this powerful force in wealth management: 📈 $5.4 trillion in assets by 2030, up from $3.1 trillion today. 📊 The number of family offices will jump from 8,000 to 10,720 by 2030. 💡 Why the shift? More privacy, customization, and tailored programs for next-gen wealth holders. 🌍 North America is leading the charge, with wealth growth projected at 258% by 2030. Family offices are investing more in private equity, venture capital, and direct deals—becoming the go-to for patient capital. Exciting times for family office growth ahead! #WealthManagement #FamilyOffice #Investment #PrivateEquity #VentureCapital

Having worked with numerous fund managers in real estate private equity, I've learned that there are some basic rules we can't forget to follow. I would like to share my two cents of wisdom today. #RealEstate #PrivateEquity #FundManagers

What is the true alpha generated by holding hedge funds? While the asset class, on average, can be shown to demonstrate outperformance over risk-free returns, that performance hype underplays the true costs. Merely adding advisors and custodian banks to the mix will erode most of the alpha generated and then some. Of course, as with any investment, there will be outliers, but family offices must pay more attention to all the fees involved. Let 1648 re-imagine your family office. We understand that navigating investments can be complex and that building processes, structures, and governance can be challenging. Unlike multi-family offices, our approach is customised to your vision and helps future-proof your family's legacy. Stay single, stay in control, and don't become another account. CHANGE BEGINS WITH A CONVERSATION.

Another one bites the dust. My fund management days are long behind me so I'm not close to this anymore (feel free to jump in and correct me) but I was looking at take private deals on MarktoMarket and it reminded me that lots of my old favourites have delisted from the London Stock Exchange recently, especially AIM - EMIS, Ideagen, Abcam, etc. These were all top companies with, I thought, great characteristics for long-term holds - operating in industries with structural growth, recurring revenues, great margins and cash generation, well run, etc etc. The latest is Mattioli Woods, another one with the above characteristics. At first glance, maybe it's maturing, slowing its acquisition strategy and therefore doesn't need to tap the markets for capital any more. But I don't think so. I don't see them slowing down their acquisition-led growth, but they obviously see the private markets as a better environment to continue this than the stock exchange. It's amazing that private equity (in the cases of Ideagen and Mattioli Woods at least) can see value where public equity cannot, paying chunky premia to take these business off the market.....or maybe the fund managers just can't buy the smaller caps anymore due to the need to keep funds liquid as the de-equitisation of the UK stock market continues. 🤷♂️ Thoughts very welcome......

Our friends at leading $35 billion+ AUM global private markets infrastructure fund manager I Squared Capital continue to build out the global capital markets team to support the investment strategies in developed and emerging markets, credit, and infratech. Look out for more private markets infrastructure fund managers hiring top investor relations and fundraising talent in the market as the fierce competition for scale and capital continues! I wonder if compensation is rising as well? #alternativeinvestments #privatemarkets #infrastructure #capitalmarkets #limitedpartners #institutionalinvestors #fundraising #investorrelations

Capital from the Global North needs to find size and risk partners that reflect real growth. The rise of exchanges like the Nigerian stock exchange the most profitable last year is proof that capital is liquid. Africa development and growth is the future of public markets. How are you going to react to 1.5 BILLION people that are outside the room and are not afraid to go it on their own? Think carefully about your response. It’ll affect your future more than you give it credit for.