Bill Kelly, CEO of the Chartered Alternative Investment Analyst (CAIA) Association, examines the pros and cons of alternative investments and how they can be used in client portfolios, including important factors in judging how and when to...
We provide findings from our survey of 157 single-family offices about their use of private equity funds, hedge funds, and direct private company investments, including recent allocation changes, future plans and differences in behavior across first generation-led family offices and those managed by second generation family members.
Second-generation SFOs have a particular propensity for direct deals, with 71% increasing their direct allocations relative to last year and 82% intending to do so in the future.
90% of SFOs increased their private equity exposure over the past year, either through funds or direct investments.
It would be overly simplistic in our view to consider headline dry powder numbers in isolation and conclude that private equity as an asset class should be avoided.
As part of our regular survey series, we queried our investor network about their use of alternatives, including current allocations, preferred structures, and top investment strategies of interest.
Growth equity has long been described as the private investment strategy occupying the middle ground between venture capital and traditional leveraged buyouts. While this is true, the asset class has evolved into more than just an intermediate private investing approach.