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At EquityZen, we saw family office investments in private company secondaries grow by 121% in 2023 versus the average over the 3 years prior. Family offices (FOs) are investment firms managing capital on behalf of a single ultra-high-net-worth individual or multiple families together. Many FOs are allocating over half of their investment portfolios to alternative investments. Driving the trend is family offices’ stated objectives to balance capital preservation with achieving outsized returns over a longer time horizon. This combination aligns with the investment timelines for private companies (and other illiquid alternatives). These factors are driving the shift: 1. Alignment with long-term goals The investment horizons of private investments generally match the long-term strategies preferred by family offices. 2. Portfolio diversification By expanding into different asset classes, family offices aim to reduce risk and enhance potential gains. 3. Stability through alternatives Alternative investments provide an opportunity to dampen portfolio volatility. 4. Seeking asymmetrical upside These investors are not just spreading risks but are also searching for investments that could yield significantly higher returns relative to the risk undertaken. We created EquityZen — because we believe the tools and lessons for wealth creation shouldn’t be only left to those who are already wealthy. Family offices offer a valuable lesson on creation and preservation of wealth.

Family offices are increasingly shifting their investment strategies towards alternative investments, aiming for potentially higher returns, lower volatility, and better alignment with long-term goals. This move reflects a shift towards private markets and away from traditional asset allocations. Larger family offices now have almost half of their investments in private markets and alternatives, with a strong focus on long-term horizons and illiquid investments. Family offices are also exploring more nuanced approaches to portfolio construction, focusing on goal-based asset allocation that considers short-term, medium-term, and long-term objectives. Educating the next generation and keeping an eye on emerging trends like generative AI are also key priorities for family offices. With the rise of alternative investments, there is a growing need for alternative data management solutions. Mirador, LLC offers streamlined tools and reporting support to help you efficiently manage and track your alternative investments. Read more from this insightful Forbes article written by Josipa Majic Predin here: https://lnkd.in/gqnETgXb #FamilyOffice #WealthManagement #AlternativeInvestments #Alts

Curious about the rising trend of family offices investing in private companies? CNBC explores this phenomenon in a recent article, shedding light on the strategies and considerations driving family office investments in the private market. Dive into the insights here: https://lnkd.in/gjdXYSAq According to CNBC, family offices are increasingly turning to private investments as they seek to diversify their portfolios, capture higher returns, and gain exposure to innovative startups and high-growth companies. With access to Ledgex's technology platform, family offices can navigate the complexities of private market investing with confidence. Ledgex empowers family offices with robust tools and capabilities to optimize private investment strategies, streamline due diligence processes, and monitor portfolio performance effectively. From deal sourcing to portfolio management, Ledgex provides comprehensive solutions tailored to the unique needs of family offices, enabling them to capitalize on investment opportunities and achieve their financial objectives. As family offices continue to expand their presence in the private market, Ledgex remains committed to supporting their success with innovative technology solutions and personalized service. Ready to unlock new investment opportunities and drive growth with Ledgex? Let's connect and explore how we can elevate your private market investing experience! #Ledgex #PrivateMarketInvesting #FamilyOffices #Innovation #Finance Peter Cunha, Nicole Eberhardt, Wendy McCoy, Christopher McCoy, Brian Nickerson

Family offices are increasingly stepping up as influential players in private company investments, evolving into what some now view as ‘economic powerhouses.’ With their capacity for long-term capital deployment and a focus on sustainable, generational wealth, family offices bring a unique approach to private markets, often filling a gap left by traditional PE and VC. This shift aligns with a growing demand for stable, values-driven investments in today’s volatile market. As someone who partners with family offices, I see firsthand how their strategic foresight and commitment to patient capital contribute to transformative growth in the companies they back.

Pepper Trends Family offices are innovating their portfolios Gone are the days of solely relying on traditional asset classes. Today, successful families are embracing alternative investments for higher returns, lower volatility, and long-term wealth preservation. Here's what's driving the change: 1) Shift towards alternatives: Private equity, real estate, and venture capital are gaining traction, offering a path beyond public markets. 2) Long-term perspective: Family offices' ability to invest for generations allows them to ride out short-term market fluctuations. 3) Entrepreneurial spirit: Many families leverage their expertise for direct co-investments in promising companies. 4) Goal-based approach: Tailored investment strategies consider short, medium, and long-term family objectives. However, challenges remain - Balancing risk, managing illiquidity, and navigating emerging trends require specialized tools and expertise. Pepper's data management platform empowers family offices to: 1) Gain deep insights into complex portfolios with diverse asset classes. 2) Make informed decisions based on real-time data and comprehensive reporting. 3) Focus on family goals with efficient portfolio management tools. Ready to build a future-proof portfolio? Let's talk about how Pepper can help your family office thrive. Pulak Sinha Ann Eberle Thomas #familyoffice #wealthmanagement #alternativeinvestments #portfoliomanagement #pepperdatawarehouse https://lnkd.in/gqnETgXb

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:

Unlocking Strategic Success for Family Offices in Southeast Asia At Protemus Capital, we’ve had the privilege of working closely with numerous family offices across Southeast Asia. One of the most strategic insights we've gleaned is the importance of focusing on areas where the family has a major competitive edge. This means zeroing in on specific countries, regions, and business models where their expertise and strengths can shine, rather than being tempted by opportunities outside their core competencies. Too often, family offices operate in an opportunity-driven manner, chasing after every promising deal that comes their way. While this can sometimes yield short-term gains, it often detracts from long-term sustainability and success. By honing in on what they do best and leveraging their unique strengths, family offices can build a more resilient and prosperous future. Here’s our advice to family offices in Southeast Asia: 1. Identify Core Competencies: Understand and map out the family’s competitive advantages. This could be in specific industries, regions, or even particular types of investments. 2. Focus on Strengths: Allocate resources and efforts towards areas where the family has deep expertise and a proven track record. 3. Resist Diversification Temptation: Avoid spreading too thin by venturing into unfamiliar territories or industries. Staying focused ensures more efficient use of resources and better risk management. 4. Build a Unique Strategy: Each family office should craft a tailored strategy that reflects its unique strengths and goals. This personal approach is key to standing out and achieving sustained success. The key to thriving in the dynamic landscape of Southeast Asia is not just about seizing every opportunity but about strategically positioning oneself where the odds of success are the highest. By focusing on core competencies, family offices can unlock their full potential and drive long-term growth. At Protemus Capital, we are here to support you in effectively executing your investment strategies. Let’s connect and explore how we can help achieve optimal outcomes for your family office. Protemus Capital #FamilyOffice #StrategicInvestment #SoutheastAsia #InvestmentStrategy #CoreCompetencies

#familyoffices #followthemoney Where Will Family Offices Deploy Trillions of Dry Powder? How to Make Them LPs? Family Offices are sitting on trillions in unallocated capital, or “dry powder,” ready to influence private markets. But where will this wealth go, and how can fund managers and entrepreneurs position themselves to make Family Offices their Limited Partners (LPs)? Key Areas for Deployment: 1. Technology & Innovation Family Offices are focusing on sectors like AI, biotech, and cybersecurity that promise long-term growth and societal impact. 2. Impact Investing Driven by the NextGen, Family Offices are increasingly blending financial returns with social good, investing in clean energy, healthcare, and sustainable agriculture. 3. Real Estate & Hard Assets Real estate continues to be a favorite, with many Family Offices expanding into sectors like co-living, e-commerce logistics, and green buildings for diversification and capital preservation. 4. Private Equity & Direct Investments Family Offices prefer direct investments, allowing greater control and better fee structures. They are drawn to funds with niche strategies or managers who offer unique access to deal flow. How to Make Family Offices Your LPs: 1. Align with Their Values Understand their goals—whether it’s sustainability or innovation—and tailor your pitch accordingly. 2. Build Personal Relationships Family Offices value trust. Personal introductions and long-term relationship-building are key. 3. Offer Flexibility Be adaptable with investment structures and timelines. Flexibility is often crucial to securing their investment. 4. Show Long-Term Commitment Emphasize your long-term vision and commitment to steady growth, as Family Offices think in decades, not quarters. Family Offices are ready to deploy capital. By aligning with their values, building personal relationships, and offering flexible, long-term solutions, you can make them your LPs and unlock the potential of this patient capital. By Ronald Diamond #manufacturing #industrialassets #manufacturing #energy #ai

Family Offices are reshaping how companies think about capital and growth. Instead of rushing to go public, businesses are staying private to grow on their terms. With patient capital, Family Offices can support companies’ long-term strategies without the pressure of meeting short-term milestones. #FamilyOffices #FamilyOffice

Ronald Diamond nails it! This is a primary thesis underpinning our business model of private investment for private mining. Public companies are forced by the very structure and workings of the public markets to focus on the wrong things. We are building mines that will last decades (i.e. 50 years or more) which could be anchor assets for family office dynasties. Public markets can't recognize the value of such long-lived constancy and therefore no public market facing company builds for it. That type of long-term value creation can only happen in a private setting. THEN, once one makes that fundamental paradigm shift, you also learn that aligning with Net Gold rather than gross reserves as the primary KPI, also changes every choice in the development decision tree, opening up so many beautiful mines that have been bypassed by public operators. And then you realize the additional additional fruit of direct metal distributions, and tax benefit passthrough, which is unavailable in public companies (MLPs notwithstanding). If you are ready to leave the herd and Be a bit Maverick, right now, at the beginning of the largest commodity supercycle boom of our lifetime, is the best time to start. DM me to learn more. #gold #directinvestment #GotGold?