Family offices are preferring direct investments in private companies over private equity funds, survey shows.

Family offices, often founded by entrepreneurs, are increasingly bypassing private equity funds to directly invest in private companies, according to a survey by Bastiat Partners and Kharis Capital. About 52% prefer direct deals through syndicates, though they face challenges like due diligence and securing quality investments. To address these, they are forming boards and investment committees and focusing on niche assets like real estate and whiskey aging.

November 12, 2024
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