Family offices’ total allocation to private equity is predicted to rise by nearly three-quarters between 2017 and 2019, according to a report supported by KKR and family office advisory Camden Wealth titled Private Equity Investing and Co-Investment Activity by Family Offices. The survey polled 75 family offices globally.
The report predicts a 73 percent rise in allocation to private equity by family offices from 2017 to 2019, or $51 million to $88 million per family office.
Family offices, which invested nearly one-quarter of their fortune on average in private equity in 2018, reported in the survey that 91 percent of their investments in the asset class met or outperformed their expectations in the 12 months to November. The asset class delivered an average 14 percent return in 2017. Family offices expect returns to reach 18 percent in 2019, the report said.
Approximately 67 percent of those surveyed said they expect family offices’ demand for co-investing — especially in the midmarket — will increase over the next year.
