Family Offices Remain Satisfied with Their Private Equity Investments

by Hayley Wong

  • 30 Mar 2010
  • PE

Preqin recently published a report on the attitudes of family offices as investors in private equity. A survey was conducted to gain an understanding of family offices as investors in private equity and their views on the asset class. Preqin surveyed 34 family offices from around the world, with over half (53%) of the respondents located in Europe, 32% in North America and the remaining 15% in Asia and Rest of World.

In order to get a clearer idea of how family offices currently view their private equity investments, Preqin asked participants whether the asset class had met their expectations. Despite the challenging financial conditions private equity investors have had to face over the past year, a considerable 65% of the family offices told us that their private equity investments had lived up to their expectations and 19% said that their investments had even exceeded expectations. The overall results indicated a long-term commitment to private equity on the part of family offices.

Preqin also questioned respondents about their allocations to the asset class. More than a third (36%) of family offices stated they do not have a set target allocation to the asset class, illustrating a key difference between many other institutional investors and family offices. As one participant pointed out, the absence of target allocations allows family offices to be “more flexible” than some limited partners. Approximately 28% of the respondents declared they were above their target allocation, while 24% were at target and the remaining 12% were below.

More details regarding this survey can be found in the research report Survey of Family Offices Investing in Private Equity.

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