The Future
for Single &
Multi-Family Offices.
Inflation is a hot topic, and economic pressures influencing many of the family office trends in 2023 and heading in to next year.
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Changes to investment strategies, increased social consciousness, and leveraging technology, automation, and outsourcing are just some of the developments as a result of the current environment.
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Also, the rise in direct investing and impact investing were under way before the pandemic, and there is little reason to suggest they stop now.
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The same goes for succession planning issues and rising operational costs. They existed before, and they will still exist. But with proper planning and action, you can mitigate the risks.
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Cybersecurity remains a hot topic. While those risks won’t go away, family offices can take steps to mitigate that risk.
Overall, the family office structure will continue to remain a viable and desirable way for wealthy families to grow and preserve wealth and assets for generations to come.
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There are some current challenges, but the future is bright and by being socially contributors, family offices can make things brighter for the world.
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According to Morgan Stanley analysis.
Private equity, venture capital, private credit, private real estate and infrastructure investments have historically over performed public markets. Family offices on average allocate approximately 45% of their portfolios to alternative asset classes and according to UBS, over 80% of family offices invest in private equity.
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And when it comes to fixed income.
29% plan to decrease investments significantly or moderately in developed market fixed income.
Two-thirds (63%) say they no longer think high-quality fixed income helps diversification.
The reason for the increase in private investing is simple. According to another UBS survey, 74% of families likely to increase their private equity allocations believe these investments will continue to outperform public equities.
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Here are a few reasons why family offices like direct investing.
Greater control.
The appeal to entrepreneurial families for a more hands-on approach to their investments.
Reduced fees.
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Similarly, many entities raising capital view family offices as good partners for the following reasons.
Long-term investment horizons.
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Flexibility with investment approaches.
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Straightforward and expedited decision-making.
Want to get in touch? We'd love to hear from you. Here's how you can reach us....
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London, United Kingdom Dubai, United Arab Emirates
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+44 (0)74 5521 3260 +971 (0)566 141 266