Star Asset
Private equity was the star asset class, with an average return of 16% for direct investments and 11% for funds-based investing. Real estate also performed well, returning an average 9.4%, and now makes up 17% of the average family-office portfolio, up 2.1 percentage points from last year’s survey. In the year ahead, 46% of families said they plan to put more money in direct private equity investments, with 42% devoting more to private equity funds and 34% funneling more into real estate, according to the survey.
Family offices are also increasingly focused on a different kind of potential disruption: succession planning. This year, 54% of those surveyed said they have a succession plan in place, up from 43% last year.
“We didn’t really see the community addressing this issue in the way that it needed to” in previous years, Campden Wealth research director Rebecca Gooch said. “As the saying goes, ‘Wealth can be made and lost in three generations.’”
This article provided by Bloomberg News.