96 New Family Offices Favor Direct Deals at 92.7% as Hedge Fund Interest Falls to 10.4%
Updated
Updated · Family Wealth Report · Aug 19
96 New Family Offices Favor Direct Deals at 92.7% as Hedge Fund Interest Falls to 10.4%
1 articles · Updated · Family Wealth Report · Aug 19
Summary
FINTRX’s 96 second-quarter additions showed a sharp tilt toward direct investing, with 92.7% listing that strategy and 89.6% favoring private equity.
That cohort’s appetite for hedge funds dropped to 10.4% from 38.2% across FINTRX’s full database, while private credit interest fell to 6.3% from 19.3% in the prior quarter’s intake.
68 of the new entrants were single-family offices and 28 were multi-family offices; North America led with 43 additions, ahead of Europe’s 26 and Asia/Oceania’s 19, while Latin America had none.
First-generation entrepreneurial wealth made up 68.6% of newly classified offices, up from 57% in Q1, with private investing, technology and real estate the main source industries.
The shift comes as private credit still shows signs of strain, with the Financial Times reporting troubled loans at major private debt investors have climbed to levels last seen in 2017.