Family offices move money out of stocks and into private markets

A recent survey conducted by Campden Wealth and RBC reveals a significant shift in the investment preferences of family offices, with 29.2% of their holdings now allocated to private markets, surpassing the 28.5% invested in public stocks. This marks the first time that family offices have favored private markets over publicly traded stocks, emphasizing a trend of increasing allocations to private equity, venture capital, and private debt. Despite a recent stock market rally, family offices plan to further concentrate on private markets, with 41% intending to boost allocations to private equity funds and a third planning increased investment in direct private equity deals. The survey, encompassing 330 family offices globally, underscores a continuing preference for private markets due to perceived long-term returns and lower volatility compared to stocks. While family offices express caution about potential recession risks, their substantial cash reserves (9% of assets) suggest readiness for strategic opportunities, including real estate and acquisitions.

Full article here.