Private investing is an increasing priority for family offices. However, many of them – particularly early-stage entities – may lack the resources or expertise to do due diligence.
Private investing1 – whether via private equity or real estate funds, direct holdings of real estate, or equity or debt positions in private companies – continues to be a key priority for family offices.
In our flagship survey of family office clients in 2022, 29% of respondents reported 10–20% of their portfolio was allocated to direct investments, with 35% allocating more than 30%.2
We expect family office appetite for private asset classes to remain strong. Over time, a growing proportion of companies have shifted from stock market–listed to privately owned. In other words, private investments now represent a larger – but less readily accessible – part of the opportunity set than ever before.
While our clients’ interest in this area is high, many of you also tell us that you have concerns when it comes to performing due diligence on potential private investments. Early-stage family offices, in particular, believe they may not have necessary resources and expertise to perform this vital process effectively.
Indeed, we hear growing concerns that some investments have been or continue to be made without a complete assessment of risk and returns. This applies to positions in their own right and their significance within a portfolio context.
In this white paper, we set out a framework for those seeking to understand and apply best practices for private investing due diligence. To do so, we draw on our long experience working with leading family office clients worldwide.
To learn more, please download our paper, Private investing: Key questions and due diligence best practices for early-stage family offices.