“The trend today is that family offices are investing directly in private companies through single-family and multi-family offices in rising numbers as these offices become more sophisticated” according to a study released by Fintrx, a Boston-based Data and Research firm.
Family offices are doing FDIs (family direct investment)
More than half of the approximate 12,000-15,000 family offices around the world invest directly today. The present is the Best time to find good deals and investment opportunities.
Over the past 20 years, growth in global wealth has resulted in the creation of an estimated 12,000 – 15,000 family offices around the world. No longer simply the province of the world’s 1,500 billionaires, the family office concept now scales to those families with US$200 million or more in investable wealth.
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The direct-investment trend is “consistent with broader trends we’re seeing in the ultra-high-net-worth market toward greater transparency, greater control of investments, and lower fees,” says Paul Ferguson, managing director at Schwab Advisor Family Office. Source: Barrons.
“With the family direct investing, these families have the ability to invest in the specific businesses they want to invest in,” Ferguson says. “They have a lot more control and can have [more of] a positive impact on the business through direct investing than through fund investing.”