Todd Vandegrift’s Post

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

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 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, increasingly resembling private equity funds, are directly investing in companies, with 62% making at least six such investments last year. This trend is set to persist in 2024, with 71% planning to maintain or increase their direct investments. With the number of family offices tripling since 2019 and their total assets exceeding US$6 trillion, their entry into private companies could reshape the private equity industry. These offices, often founded by skilled entrepreneurs, offer expertise, management advice, and patient capital to portfolio companies. Co-investing with private equity firms is common, reducing fees and increasing carried interest payments. Challenges include limited investing range and the need for thorough due diligence, leading many to seek assistance from wealth management firms and deal advisors. This data comes from a survey by BNY Mellon Wealth Management. #FamilyOffices #Growth #Investment #PrivateWealth #PrivateEquity #WealthManagement #NextGen #FamilyBusiness I CNBC I Robert Frank

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

A survey by BNY Mellon Wealth Management reveals that a majority of family offices engaged in at least six direct investments last year, involving acquiring stakes in private companies or providing lending. This approach enables them to offer not just capital but also expertise and management advice to the portfolio companies. Private companies are showing growing interest in family offices amidst tightened lending by banks and reduced deal activity by private equity firms. Learn more: https://lnkd.in/gTwg264F

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

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.

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