Family offices hiring more investment chiefs, tapping private equity - Business Insider

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How secretive family offices are snapping up talent from the world of private markets and becoming bigger investing powerhouses

Fidelity conducted last year of 111 US-based family offices, the average respondent's net worth was $1.6 billion.Family offices oversee trillions in wealth and are highly secretive. But that's changing as they chase direct deals — and company execs want to know who's behind the money.

Derek Braddock, co-founder of New York- and Boston-based asset management-focused executive search firm BraddockMatthews said a number of searches his firm has conducted in recent years have been for families' first ever chief investment officer."A lot of family offices of great wealth have concluded, really regardless of their asset size, that they want to bring capabilities in-house rather than outsourcing," he said.

"I think those folks are not only allocators, but they can invest opportunistically," Braddock said in a recent phone interview. Uber-rich investors hungry for growth have turned their sights on the private market. Here's how wealth firms like Citi and UBS are transforming their businesses to meet those client demands.

"This trend runs hand-in-hand with family offices, particularly single-family offices, opting to participate directly in private equity transactions as opposed to investing in PE funds," Caulfield said in an email, adding that trend is more significant for family offices based in North America and Asia than for those based in Europe.

 

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