By Eshana Lutawan, Marketing Manager at HF Quarters
Family offices are often portrayed as conservative and relationship-driven. 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 remain sensitive to transparency, governance, and alignment, and gravitate toward sponsors and managers who are willing to open their books, explain their structures, demonstrate strong risk management, and discuss governance openly. The structure can be intricate, but the story must be transparent. Beyond that point, the risk of complexity quickly outweighs any payoff potential.