This report on family offices and direct investing comes at a time of change. Family offices, like all of us, have recently been through the global COVID-19 pandemic and the suffering it caused. Now, as the pandemic’s impact is starting to fade, global markets have been hit by the rapid shift from bull to bear market and the threat of recession. Russia’s brutal invasion of Ukraine has led to the biggest shock to global stability for decades and to real-time imagery of the horrific suffering by the Ukrainian civilian population. Crypto winter has now become a hard freeze, punctuated by a string of overnight bankruptcies. From the geopolitical and macroeconomic outlook to the operational challenges of post-pandemic work, family offices around the world have much to consider as they invest with the needs and goals of their family members in mind.

A total of 188 family office respondents from 32 countries took part in this survey. Participants, who ranged from family members and C-suite executives to investment professionals and other family office staff members, provided a comprehensive picture of how family offices view the world and the key factors driving their investment strategies. While many family offices are braced for the worst as investors, they are also continuing to search for the best direct investments in public and private markets. An increasing number of families are interested in direct investments in growing companies, especially in the healthcare and technology sectors. This report examines how family offices are thinking about allocating capital to funds versus going direct.

Private equity is a key focus. Many families want to back early-stage growth enterprises in key sectors, rather than participate in mega rounds involving the largest private equity fund managers.

If you are involved in a family office, whether as a family member, an employee, a board member or a senior executive, we trust that you will find this report thought-provoking and insightful. Among the insights in these pages, we have been able to compare the investment views of family members with that of non-family staff members at family offices. Are family members more aggressive in their investment approach than their hired investment executives, or are they more wary of risking their family wealth? This report sheds light on this and similar issues. We are particularly grateful to our survey partners and everyone who participated in the research for their time and insights. This report covers the main findings mined from a rich vein of family office data. Readers wanting additional information that goes beyond the charts and comments here are invited to reach out to myself or your Dentons lawyer or professional.

Edward V. Marshall, Global Head of Family Office at Dentons