Since 2015, the number of, and wealth represented by, family offices have grown dramatically. So, too, have their levels of sophistication and professionalism matured. In the process, their investment strategies, adding direct private investments (DPI) to the portfolio mix, and organizational models have significantly evolved to meet their long-term goals.
Co-investing with another family office, in which one takes advantage of another’s expertise, infrastructure, and prior investment to make an investment, has become more prevalent.
This paper examines:
- The reasons why DPI has become more popular,
- Why co-investing is gaining traction,
- Challenges to Direct Private Investing, and, most relevantly,
- How family offices have adopted different organizational models to reflect their investment priorities.