Preqin recently conducted a survey of family offices and multi-family offices on our Investor Intelligence database in order to gain a better understanding of family offices as investors in private equity.
Nearly 70% of participants told us that, in the next 12 months, they would consider investing with private equity fund managers they had not previously committed capital to. This compares favourably to a recent Preqin survey of all types of limited partners, which indicated that 54% of investors would consider establishing new relationships with GPs this year.
A key aim of the survey was to ascertain whether family offices believe they differ from other private equity investors, and to what extent they believe their needs are being met by fund managers in the asset class. More than one-quarter (27%) of respondents referred to the need for family offices to have a close relationship and good communication with fund managers, while a number of participants spoke of family offices being more flexible and having longer-term perspectives than other investor types, making them ideally suited to the private equity asset class.
The majority of family offices responding to the survey indicated that the history of fund managers is an important factor when seeking new investment opportunities, with 82% stating that they seek GPs with good track records, and 68% placing value on the experience of fund managers. A considerable number of family offices also said that they seek private equity firms that possess operational and value-adding expertise, rather than just financial capabilities.
Further details of this survey can be found in the March issue of Preqin’s Private Equity Spotlight, while the full results are due to be published soon.
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