Family offices and alternative investments: Transparency versus complexity - London Business News | Londonlovesbusiness.com
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Family offices and alternative investments: Transparency versus complexity - London Business News | Londonlovesbusiness.com
"While this may have some merit, many of them have a real appetite for structured, multi-layered deals, paired with a low tolerance for complexity they can't understand or control. Recent global family office surveys indicate substantial and sustained allocations to private equity, private credit, real estate, and other private markets, with alternatives accounting for more than half of portfolio holdings in the US and 40-50% of holdings in Europe and the Middle East."
"These studies also highlight growing use of co-investments and direct deals alongside traditional fund commitments, particularly in private equity and real assets. Family offices see more access to potential deals, although challenges persist due to due diligence constraints and tight timelines. While family offices remain open to complex deals, they could see them as less appealing if they are opaque."
Family offices allocate substantially to private equity, private credit, real estate, and other private markets, with alternatives exceeding half of US portfolios and comprising 40–50% of portfolios in Europe and the Middle East. Many family offices pursue structured, multi-layered deals and increase use of co-investments and direct transactions alongside traditional fund commitments, especially in private equity and real assets. Deal access has increased, but due diligence constraints and tight timelines remain challenges. Family offices tolerate complexity only when structures are transparent, governance is clear, alignment is demonstrated, and sponsors openly explain books and risk management.
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