Family Offices Alternative Investments
Family Offices Heavily Invested in Hedge Funds, Private EquityFamilyOffices.com
The company polled 151 executive directors of single-family office operations and found 85% are currently invested in hedge funds while roughly half report active private equity sector investments.
According to Rothstein Kass, the mean investable assets of single-family offices stand at roughly $416 million in 2011, up from about $236 million in 2010.
Almost all the single-family offices polled in early Q1 2011 relied on external money managers, while roughly 22% also had in-house capacity.
A full 90% of the directors polled were considering additional investments in hedge funds this year. The most popular strategies, according to Rothstein Kass, were long/short equity (53%), distressed (49%), arbitrage (33%), managed futures (25%), and global macro (25%).
On the private equity side, the survey showed 70% of respondents planned increased allocations in 2011. In terms of investment preferences, 59% are likely to target established companies, 39% mezzanine financing, and 32% second-round financing. Source