New Family Offices Favor Direct Deals at 92.7%, Shunning Hedge Funds at 10.4%
Updated
Updated · Wealth Professional · Aug 18
New Family Offices Favor Direct Deals at 92.7%, Shunning Hedge Funds at 10.4%
3 articles · Updated · Wealth Professional · Aug 18
Summary
FINTRX’s Q2 data on 96 newly added family offices shows 92.7% interested in direct investments and 89.6% in private equity, versus just 10.4% for hedge funds and 6.3% for private credit.
That gap is far wider than across FINTRX’s full database, where hedge fund interest is 38.2% and private credit 24.1%, signaling a sharp break from traditional externally managed fund structures.
Q2 additions also fell 19.3% from Q1 to 96 and skewed more single-family and entrepreneurial: 70.8% were single-family offices, and 68.6% of new single-family offices came from entrepreneurial wealth.
Geographically, 59.4% of new offices were based outside the US, with Europe adding 26, Asia and Oceania 19, and Africa and the Middle East eight; Switzerland and Australia led with six each.
For asset managers and advisers, the shift points to a smaller, more international pool of new family offices that increasingly wants co-investment, bespoke structures and direct deal access rather than commingled funds.
With new family offices ditching hedge funds for direct deals, are traditional asset managers facing an existential threat from their wealthiest clients?
As entrepreneurial family offices pivot to leading massive AI funding rounds, how will this patient capital disrupt the traditional venture capital ecosystem?
Why are newly minted global billionaires risking their wealth on bespoke direct investments instead of relying on established commingled funds?