Family Office Insights

In my daily interactions with family offices, I've been observing a significant shift in their approach to venture capital investments. Increasingly, they are leaning towards direct investments rather than traditional fund investments. This shift is not just about diversifying assets; it's about aligning their investments with their values, creating a lasting impact and believing that they can outperform VC. A lot of the family offices I'm talking to are increasingly drawn to investments that offer both financial returns and alignment with their core values, particularly in areas like sustainable technology and healthcare. They're seeking a deeper connection with their investments, which goes beyond mere financial transactions. They're not just passive investors; they want to be part of the story of the companies they invest in, influencing and nurturing them towards success. Often they see their investments as extensions of their legacy. Navigating direct investments, however, requires a specific skill set and resources. The successful family offices I see in this arena often have robust in-house teams and collaborate with other entities (other families, other funds, independent sponsors). I see a lot of family offices who invest with us so that they can mentor entrepreneurs directly and gain exposure to a curated deal flow they might not typically access. This kind of engagement is invaluable for everyone involved, particularly for entrepreneurs. Many of these families are seasoned entrepreneurs themselves, bringing a wealth of practical knowledge and industry connections that can be pivotal for the growth and success of startups. Risk management is a critical aspect of direct investing. While there is potential for higher returns, the risks are also greater. Balancing direct investments with more traditional fund commitments is a strategy I've seen many successful family offices adopt. This approach allows them to maintain a diversified portfolio while indulging in the more hands-on aspect of direct investing. In my opinion, family offices are setting new benchmarks in venture capital investing through their direct involvement and strategic insights. And yes, some family offices are positioned to potentially outperform traditional venture capital funds. Their unique insights, long-term investment horizon, and close involvement with their investments provide a competitive edge that traditional funds may not match. Source: Dentons (note: the graph below is for all asset classes; not just venture capital)

The Family Office investment landscape in 2024 is marked by a decisive shift toward private markets. According to Goldman Sachs, private equity claimed a significant portion of Family Office portfolios in 2023 – representing 26% of their assets. This keen interest in private equity is further substantiated by the UBS Global Family Office Report, which reveals that a remarkable 86% of Family Offices are planning tactical overallocations within this asset class over the next 12 months. In 2023, Family Offices have shown a growing appetite for private debt as a component of their investment portfolios. The BlackRock Global Family Office Survey highlighted that despite a challenging economic outlook, less than a quarter of these offices intend to make material changes to their asset allocation. However, there has been a noted shift in investor sentiment towards private debt. Historically, allocations to private debt have been low, with 87% of Family Offices allocating less than 10%, but two-thirds now indicate their intent to increase their exposure, drawn by the potential returns from dislocated markets. This strategic shift underscores Family Offices' belief in the potential of private equity markets to deliver superior returns, both via investing in private equity firms, but also the direct investment in companies in the mid-market segment. Indeed, Family Offices have been increasingly investing directly in companies – over the past decade, there's been a noted rise in such direct investments due to factors like asset accumulation, talent acquisition, robust networks, and the desire for greater control and decision-making ability. Campden Wealth and FINTRX reports highlight that 76% of Family Offices invest directly in companies, with 83% of Family Offices worldwide considering direct investments. The willingness to take on more risk reflects their confidence in identifying pockets of value within the private equity landscape. As Family Offices pivot toward private equity, they are positioning themselves for long-term growth and the preservation of generational wealth. While private equity takes center stage, Family Offices are also recognizing the value of secondaries investments. The UBS Report highlights a notable trend: nearly half of surveyed Family Offices (45%) plan to over-allocate their portfolios to secondaries. This surge in interest can be attributed to the narrowing valuation gap between public and private markets. As public markets rebounded, secondary markets became increasingly attractive. The ability to transact LP interests in this environment has encouraged higher deal volumes. Secondaries funds raised a staggering $34.66 billion in 2023, surpassing the previous year's total and on track to exceed 2021's record. Some alternatives fund managers, such as Morgan Stanley Alternative Investment Partners and Blackstone, have raised capital for secondaries strategies in 2023. #familyoffice #tiger21 #privateequity

Deloitte’s Private Company Outlook: Family Enterprise survey is out! 📣🙌 Lots of interesting insights on the strategic priorities for family businesses.   What caught my eye? 👀 While many leaders of family owned businesses think their organization is ready for succession, the next generation might not be as eager or ready.    Although nearly half of the 100 U.S. family business leaders surveyed feel prepared for leadership succession, many organizations face significant challenges. To prepare future leaders, family enterprises are focusing on formal education (52%), on-the-job training (48%), and mentorship (45%) to develop future-ready leaders.   But the challenge isn’t just about skills; it's about interest. The survey cited a lack of interest from the next generation (37%) – echoing Deloitte's Gen Z and Millennial Survey, which shows only 6% are primarily driven to reach senior leadership. Unclear selection criteria (31%) and leadership skill gaps (31%) further complicate matters, according to our Outlook.   As executives at privately owned companies look to secure the long-term stability and growth of their organizations, understanding succession dynamics is crucial. Dive into the full survey for more insights 👉https://lnkd.in/eQCBEDaq   Curious to hear from my network. How is your organization preparing the next generation? Share your thoughts in the comments! 👇

Anyone who's worked with a Family Office knows this: The biggest risk isn’t markets. It’s people. In 2025, the most forward-thinking Family Offices are building systems that last. Consider the data: - 86% of Family Office executives cite governance as their top challenge - 69% list succession planning as a core strategic focus - 66% prioritize next-gen education and family advisory programs I break this down in my latest article for The National Law Review: https://lnkd.in/e2hQXF93 If you're building for more than yourself, this article is for you. #FamilyOffice #Governance #Succession #Capital #Longevity #UHNW #NationalLawReview

🔎 How did Family Offices go from quiet stewards of generational wealth to the driving force behind some of the most significant shifts in private markets and global investing? In 2024, they didn’t just maintain their influence—they expanded it, challenging private equity and venture capital models, embracing ESG at unprecedented levels, and steering the largest wealth transfer in history. Their impact on the financial world is no longer quiet—it’s transformative. 🔸 The Opportunity & the Risk Family Offices balance long-term vision with flexibility, but this influence brings challenges. Nearly 60% still lack governance structures or succession plans, a gap highlighted by Ronald Diamond in "2024 Family Office Recap." As NextGen heirs emphasize ESG and philanthropy, Family Offices must adapt to foster intergenerational dialogue. Without alignment, inefficiency and trust erosion threaten legacies. 🔸 Patient Capital: A Catalyst for Change Patient capital, a Family Office hallmark, fueled transformative investments in biotech, renewable energy, and AI. Success demands not just time but operational excellence and best practices. Aligning strategies with innovation positions Family Offices as leaders in private markets. 🔸 Women in Wealth: A Paradigm Shift With nearly half of the projected $84 trillion wealth transfer—now expected to reach $105 trillion—going to women, female inheritors are driving sustainability, philanthropy, and impact investing. Family Offices must integrate diverse perspectives and values into leadership to stay competitive. 🔸 Technology: The Backbone of Progress Technology adoption in 2024 streamlined operations and improved decision-making. Tools like AI and blockchain enabled efficiencies, but success depends on integration and training. Family Offices treating technology as foundational, not a quick fix, will thrive. 🔸 The Disruption of Private Markets Family Offices redefined private markets in 2024, leveraging patient capital and bypassing traditional PE and VC models to align returns with values. Mission-driven strategies proved impact and profitability can coexist, challenging the status quo. 🔸 Looking Ahead: Leadership & Adaptation What excites me most about 2024 isn’t just the scale of the wealth transfer or the rise of ESG—it’s the recognition of what Family Offices can achieve when they lean into their strengths. They’re not constrained by quarterly earnings or short-term cycles. They have the freedom to invest in what truly matters, from next-generation technologies to sustainable urban development. This opportunity requires leadership. Family Offices must embrace governance, professionalization, and technology—not as checkboxes, but as integral parts of their strategy. By doing so, they can define the future of wealth management and set a new standard for balancing profit and purpose. The question isn’t whether Family Offices will lead—it’s how they’ll use their influence to shape the world. 🌎

What’s forcing Family Offices to rethink where and how they invest in real estate? In recent months, we’ve seen a marked shift from traditional, “safe” asset classes into sectors once considered secondary. Industrial remains strong, especially with nearshoring boosting demand for logistics and warehousing across the US Mexico border. But what’s capturing Family Office attention even more are sectors that combine resiliency with real world utility: medical office, cold storage, and workforce housing. These aren’t just buzzwords. In fact, according to the Family Office Real Estate Institute’s latest analysis, allocations are moving sharply away from single family homes, hospitality, and even assisted living. Instead, capital is rotating into areas that align with long term wealth preservation: durable income, lower volatility, and assets that perform through economic cycles. We’re also seeing the emergence of more direct investing strategies. Family Offices are bypassing funds and going deal by deal, often preferring club deals or co investment structures with aligned operators. Besides control, Family Offices want to be closer to the asset, to better manage risk, to reap the full benefits of depreciation and tax efficiency. One clear example: A $250M West Coast SFO recently exited its allocation to retail REITs and redeployed into four off market medical office properties in secondary cities at cap rates nearly 200 basis points higher than what they were getting in core markets. The rationale? Recession resilience, essential services, and better yield. At the same time, Family Offices are continuing to prefer long holds. Over 50 percent look at 10 plus year timelines. The contradiction is that many of the most attractive investment strategies, value add, opportunistic, and development that typically come with 3-5 year cycles. The workaround? Stabilize, refinance, and hold. But that takes the right partner. And patience. Real estate remains a cornerstone for generational wealth, but it appears the playbook is changing. Family Offices are doubling down on asset classes with staying power, shifting into more hands on structures, and aligning capital with long term vision rather than market timing. So their challenge now is not whether to invest, but how to find opportunities that match the Family Offices goals, risk profile, and values. Those waiting for the perfect market are already behind. From my experience, the families who win are the ones who play the long game with the right partners, the right assets, and a plan that looks 20 years out, not just two.

I asked four US Family Office CIOs what’s ahead for 2025. Here’s what they shared: 1. Private markets take the lead. Volatility in public markets will push more capital into private equity, venture, and real assets. Families want control, stability, and outsized returns. 2. ESG becomes the norm. Younger generations demand sustainability. From renewables to impact investing, ESG isn’t a trend—it’s table stakes. 3. Data is the new advantage. Family offices are investing in AI, analytics, and cybersecurity. Smarter data, smarter decisions. The big picture? Family offices are ahead of the curve—lean, flexible, and future-focused. What trends are you watching for 2025? #familyoffice #esg #privatecredit #data #realestate

𝘜𝘯𝘭𝘰𝘤𝘬𝘪𝘯𝘨 𝘐𝘯𝘴𝘪𝘨𝘩𝘵𝘴: 𝘞𝘩𝘢𝘵 𝘛𝘩𝘦 𝘍𝘢𝘮𝘪𝘭𝘺 𝘖𝘧𝘧𝘪𝘤𝘦 𝘋𝘢𝘵𝘢 𝘚𝘢𝘺𝘴: The family office landscape is evolving rapidly, yet the common challenges of family enterprises persist. Why do we care, iBridge is a boutique family business and family office strategy firm that specializes in designing bespoke strategies to help owners and families achieve their goals in concert with owner’s tax, legal, wealth etc advisors. So, we live in the neighborhood and want to know what is happening. To get the numbers, we did a survey of contacts, clients, and friends, so we can understand the goals and challenges.      Key Findings: Despite being top priorities, areas like succession planning, family governance, and cybersecurity remain unresolved for many family offices. ☀️ Succession Planning & Family Governance: 72% view these initiatives as mission critical but struggle with planning and implementation. -This is not surprising, poorly planned transitions destroy most family entities and governance (family & business) is generally overlooked or poorly utilized. ☀️ Cybersecurity: 40% cite this as a top service risk, with over 25% admitting breaches or fraud. -This was surprising given the day and age, from personal experience no name companies get pinged constantly. Cyber intrusion is not an If, but When, so make sure the door is locked. ☀️ Family Unity & Decision-Making: Almost 90% of families are deeply involved in investment decisions, but half struggle to democratize these decisions through governance and investment councils. And 62% lack insight into the performance of their operating company investments and sufficient succession plans. -This is not surprising, relinquishing control even when it is key to the firms long-term success on multiple levels is hard for most owners generally due to fear, lack of clarity, and confidence. As for evaluating and tuning up operational investments, being able to break a business down, maximize its performance, and design it for a desired transition purpose is a different skillset that most owners have never had to learn. The Reality of All This: Balancing family control with effective governance, security measures, and comprehensive transition planning is no small feat – and this is just the top three challenges. There's a growing emphasis on using family offices to foster unity, free-up next generations to pursue their own passions while retaining family assets and trying to ensure long-term success across generations. But it doesn’t work, or work for long, if the family, the office, and owners are not aligned and designed to achieve their goals. Family Office is a Family Business, it is a family in business together, yes, it is more complex than that, but if you don’t have the basics dialed-in, then we know where this is heading. #FamilyOffice #SuccessionPlanning #FamilyBusiness

"Can I be real a second? For just a millisecond? Let down my guard and tell the people how I feel a second?" Aside from the lyrical genius of Lin-Manuel Miranda, George Washington is on my mind. I've had a number of conversations in the past few weeks with wealthy inheritors who have a George Washington at the helm of their family - a founding father, revered, undisputed as the leader, often in their 80s or even 90s. The "kids" are in their 50s or 60s or even 70s, and yet still waiting in the wings to move into leadership positions in the family office. When a family office suffers from "founder’s syndrome"—where the patriarch (or, more rarely) matriarch declines to step back—many of the same organizational weaknesses seen in nonprofits or startups also apply. 1. Resistance to Evolution: A founder who built their wealth under a siloed approach where businesses make money and philanthropy is used to "give back" may reject a more holistic, integrated life philosophy held by their children or grandchildren. The family office risks alienating younger family members whose financial goals and worldviews differ from the founder’s. 2. Lack of Preparation: Important knowledge, relationships, and decision-making authority remain concentrated in one all-powerful individual, leaving the office vulnerable to disruption if the founder becomes ill, dies, or is incapacitated. Families can experience a power vacuum exacerbating internal disputes at precisely the moment when they most need clear leadership. And if the family office team has resisted the ideas and priorities of successive generations because they only really answered to the founder? Things can get ugly quick. 3. Weak Governance and Oversight: Boards, investment committees, or advisory councils often exist in name only if the founder maintains centralized control. Even if they technically have an equal vote, they may be hesitant to challenge the founder or propose alternative views. Many family members complain that "governance" is purely ceremonial such that decision-making suffers, and so does their interest. In short, a family office stuck in the shadow of a dominant founder often trades long-term resilience for short-term control. True legacy is not about maintaining a grip—it’s about preparing others to lead with clarity, competence, and values. Without that, the family risks becoming wealthy but hollow, with a family office reflecting the past more than it serves the future. So what to do? As one colleague said "Good luck moving [the founder] out of that seat." One of the greatest gifts a larger-than-life founder can give to the family is to move from being the Chair of the family office, to its client, a revered emeritus. I keep returning to the example of George Washington, who willingly left office before being forced out: "If I say goodbye, the nation learns to move on; It outlives me when I'm gone" Can a family founder be just as wise? #familyoffice #succession