Family Office Private Markets Benchmark Report 2024

Introduction

GPFO (Global Partnership Family Offices), the private membership association for family offices, today released its latest report on family office investment trends, revealing a substantial shift towards private markets and alternative assets. The study, which surveyed representatives from single family offices provides unprecedented insights into the evolving strategies of these increasingly important capital markets participants.

Key Findings

1. Asset Allocation Tilt to Alternatives: Family office portfolios have tilted significantly towards Alternative Asset Classes, now comprising 50.49% of allocations. This shift is driven by increased private market allocations and declining public equity allocations over the past 24 months.
2. Industry-Wide Asset Allocation Benchmarks: For the first time, the report presents industry-wide asset allocation benchmarks encompassing aggregate data from 1,266 family offices, revealing significant variance in fixed income and equity allocations among family office peers.
3. Private Markets Sentiment: Portfolio changes indicate an increased proportion of asset bases shifting to private markets, part of a broader adoption of alternative assets. Investment sentiment from family offices remains positive as opportunity offsets uncertainty and liquidity concerns.
4. Co-Investment Trends: Co-Investment is emerging as a preferred strategy in venture and growth segments of private markets. The report highlights that this area is expected to grow meaningfully in the coming years, though definitions and perceptions of co-investment vary greatly.
5. Strategy and Process Changes: 33% of family offices intend to increase in-house staff to support investment processes, while 28% plan to explore new asset classes.

"Our research reveals that family offices are increasingly sophisticated in their approach to private markets, leveraging their unique position to access high-quality opportunities while remaining acutely aware of associated risks and operational demands. The trend towards co-investment is particularly noteworthy and warrants deeper exploration." Dr. Michael J. Oliver, Co-Founder & Board Member of GPFO

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The report also emphasizes the growing emphasis on sustainable and impact-driven investments, reflecting the priorities of an emerging cohort of wealth inheritors. This comprehensive study offers invaluable insights for family office principals, executives, and advisors aiming to optimize their private market strategies in a dynamic investment landscape.

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"The report highlights both the exciting opportunities and complex challenges in the co-investment landscape for family offices. While co-investment has emerged as a key trend offering potentially enhanced returns and greater portfolio control, it also brings significant hurdles around nomenclature and transparency. As the industry evolves, it's crucial that we work towards standardized terminology to enable family offices to accurately assess costs and benefits. This report aims to dive deeper into these trends, examining best practices for navigating co-investments and improving alignment between family offices and their investment partners."‍ Hugo King-Oakley, Head of Private Markets & Community at GPFO

About GPFO

Founded in 2009, Global Partnership Family Offices (GPFO) is a private membership association dedicated to supporting and connecting family offices worldwide. With members in over 20 jurisdictions, GPFO provides a platform for networking, knowledge sharing, and access to exclusive resources tailored to the unique needs of family offices. GPFO's community includes principals, family members, executives, and advisors from both single family offices and private multi-family offices.

GPFO Research

GPFO Research is a platform that delivers family office insight-ready data and tools. Built on a trusted academic foundation, our team brings together primary data and leading market access to build industry benchmarks and uncover unique insights. For family offices globally, GPFO Research delivers mission-critical data for operations, investments and beyond.

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FAQs

Q: How do I access the Report?

A: Visit the dedicated page here. Members can access the report at no cost, Institutions can purchase the report.

Q: What are the Industry Benchmarks?

A: The Industry Asset Allocation Benchmarks take aggregate level data on asset allocation, representing 1,266 family offices and present industry benchmarks by asset class, including box plots for upper, median and lower quartiles.

Q: How do I join GPFO membership?

A: Submit an application here. Eligibility criteria apply.