Patrick Lai’s Post

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

Interesting read on the rise of Family Offices and their impact on the private market.

According to a recent survey by BNY Mellon Wealth Management, a substantial 62% of family offices engaged in at least six direct investments last year, underlining a strategic move towards becoming their own private equity entities. What's interesting is the proactive approach many family offices are taking, with 71% planning to either maintain or increase their direct investments in 2024. With the number of family offices tripling since 2019 and their combined assets estimated to surpass $6 trillion, the impact of this influx of capital into private markets could be transformative, reshaping both the private equity landscape and the companies they invest in. The rise of family offices as direct investors represents not just a financial opportunity but also a testament to the evolving nature of wealth management. By combining financial resources with industry expertise and a long-term perspective, family offices are poised to play an increasingly influential role in shaping the future of private markets. Read more https://lnkd.in/gcy8eU-d. #DanielCommunities #FamilyOffice #Partnerships

New research from BNY Mellon shows that family office investors are increasing their allocations to private capital markets, with 62% making over six direct private investments last year. Private markets have moved beyond a hedge against inflation and have become a strategic imperative for family offices. The future of private markets looks bright: ✅ Continual funding boosts ✅ Increased liquidity ✅ A strong embrace of automation, digitisation, technology This indicates that institutional investors like family offices are likely to increase their allocations to infrastructure, private debt, and private equity in the coming year. We can also expect more digitisation and automated workflows, capitalising on the increased flow and appetite for private markets. Read more below to get up to speed... https://lnkd.in/ejrpcyGz #FamilyOffices #PrivateMarkets #PublicMarkets #InstitutionalInvestors Globacap

💵 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 have increasingly started challenging the private equity industry. While most banks have tightened lending and private equity firms have done fewer deals due to a slower exit environment, indicates data from BNY Mellon Wealth Management that family offices are allocating more capital to direct placements. According to the survey, over 60% of the offices participated in direct investments by buying a direct stake or providing lending last year, with most of them planning to make at least the same or more direct investments in the next year. Why direct deals? Most family offices are established to protect wealth and ensure the family properly invests its money. The founder typically has an entrepreneurial background with experience in building and scaling companies within a specific niche. Participating in direct investment allows the family to allocate capital and actively contribute their expertise and knowledge to helping their portfolio companies grow. #familyoffice #privateequity

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.

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:

Where are #FamilyOffices directing their money right now? A survey of global family offices by BNY Mellon Wealth has revealed that while real estate and public and private equity still make up a majority of portfolios, family offices are increasingly investing directly in unlisted assets rather than relying on external managers. They are also venturing into new areas, including venture capital and cryptocurrencies (now accounting for 5% of portfolios). However, some remain cautious due to volatility and regulatory concerns. #investmenttrents #wealth #wealthmanagement #realestate #equity

According to a survey by BNY Mellon Wealth Management, most family offices engaged in a minimum of six direct investments last year, involving acquiring shares in private companies or offering financial support. Direct investments enable family offices to not only provide financial backing but also offer their specialized knowledge and managerial guidance to the companies in their portfolios. As banks restrict lending and private equity deals decline, private companies are finding family offices more appealing partners for investment. This trend highlights the growing interest of private companies in collaborating with family offices for funding and expertise, amidst changing dynamics in traditional lending and private equity sectors. https://lnkd.in/dKYFX4nr