In recent years, private equity direct investments has solidified its role as a core asset class for family offices, increasingly taking center stage in portfolio strategies.

Family offices are moving away from traditional pooled funds. Instead, favoring direct investments that grant greater control over capital deployment and a more tailored approach to portfolio management.

According to a 2024 survey by Bastiat Partners and Kharis Capital, this shift reflects an evolving preference for high-quality, customized investments.

This aligns with family office objectives, particularly as market dynamics demand more flexible and responsive capital strategies.

A Growing Priority for Private Equity

Private equity investment is no longer a secondary consideration for family offices; it has become a foundational component of many portfolios.

The survey reveals that 40% of family office respondents plan to increase their private equity allocations over the next two years.

This reflects confidence in the sector’s potential for strong returns and its alignment with long-term growth strategies.

By moving toward private equity, family offices gain unique advantages. Access to high-growth private companies and industries often insulated from the volatility seen in public markets.

The Rise of Private Equity Direct Investments

Direct investments stand out as the preferred approach for family offices, driven by a desire for closer oversight, reduced fees, and flexibility in decision-making.

Unlike pooled funds, where capital is managed by third parties, direct investments enable family offices to pursue specific opportunities that fit their strategic objectives.

This trend also opens the door to co-investments with other family offices. Trusted partners enhance access to a wider deal pipeline while sharing both the capital and risk involved.

In the survey, 50% of family offices reported an intention to increase exposure to direct investments. This is suggesting that customized deal-making is more than a trend; it’s now a strategic imperative.

Navigating the Private Equity Landscape: A Strategic Partner for Family Offices

For family offices, the rising appeal of direct private equity and tailored investment strategies underscores the importance of informed, adaptable partnerships.

They are aligning with firms that bring a deep, specialized understanding of the private wealth landscape. Family offices can better navigate the nuanced demands of direct investments and private equity.

This often involves working alongside experienced advisors who can assist in structuring complex investments. Access to networks that enrich deal flow and broaden investment horizons is essential.

Carlisle Place & Partners, with its expertise in private wealth and family office strategy, shares insights that resonate with these evolving priorities.

Family offices seek investments that balance flexibility with long-term growth, by leveraging established networks. In-depth industry analysis helps to optimize their private equity portfolios with both precision and foresight.

As family offices continue to gravitate towards direct investments and private equity, the expertise and support of collaborative advisors play a valuable role.

With careful, strategic management, these investments align family offices with opportunities. This not only enhance returns but also meets broader objectives for multi-generational wealth preservation.

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Cover image by Freepik
Chart by Bastiat Partners and Kharis Capital report

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