Talking Point  

Increasing focus on private markets from next generation of family offices

Increasing focus on private markets from next generation of family offices
Family offices are facing a change in investment priorities with an increasing focus on private markets. (credit: Kevin Malik via Pexels)

Family offices are facing a change in investment priorities and approach as the next generation of the family become more involved, according to a new study by fund administrator, Ocorian.

It found almost all (93 per cent) of family office professionals including those working for multi-family offices questioned say the next generation differ from the founding and preceding generations on how to run the family office with a third (34 per cent) saying they differ significantly.

Key issues identified by the study include investing in digital assets which 66 per cent reported as an area of difference while nearly half 46 per cent pointed to an increased focus on private markets from the next generation.

Article continues after advert

More than four out of five (82 per cent) said the next generation was also becoming more involved in developing and reviewing the family office’s investment strategy with 35 per cent reporting much more involvement from the next generation, Ocorian’s international study of more than 300 family office professionals found.

Michael Harman, commercial director at Ocorian, said: “Differences in approach and priorities between different generations in family offices are natural and to be expected but do need to be recognised and included in succession planning."

Areas of difference for next generations in family offices

Percentage of family office professionals highlighting this area

Digital assets

66 per cent

Increased focus on private market

46 per cent

ESG/impact investing

42 per cent

Investment risk appetite

34 per cent

Geographical footprint

31 per cent

Asset allocation/investment strategy

28 per cent

Synthesising cultural priorities

20 per cent

Philanthropy

19 per cent

Ownership of physical assets such real estate or business aircraft

12 per cent