An increasing number of family offices are looking at direct investment. The attraction of lower fees coupled with the ability to have greater influence over investments is attractive.
Historically private capital hasn't had the accumulation of assets and talent required to effect such investments or the robust networks to source them. This is no longer the case and we commonly see family offices leaning on their professional advisors to introduce them to transactions and provide commercial input.
As the roles of private equity and direct investment within family offices continue to evolve, both families and investment advisors have much to consider. Sourcing deals and ensuring they can be quickly but effectively evaluated will remain top priorities.
As family offices have grown in sophistication over the past decade, interest in direct investment opportunities has been increasingly noted. Family office direct investment trends can be attributed to several factors including the accumulation of assets and talent required to effect such investments on the single family office's behalf, more robust networks, as well as the greater control and decision-making ability, as well as better value and interest alignment and returns that these deals afford.