Portfolio construction and management
KEY TAKEAWAYS
Ongoing commitment to private equity, real estate and hedge funds
Average allocations to public and private equity the same at 22%
Cash allocations remain high at 12%
Home bias and concentrated positions are prevalent globally
Alternative asset classes – private equity and credit, real estate and hedge funds – made up almost half (46%) of respondents’ total portfolios.
Private equity allocations were identically sized as those to public equity at 22%, with private equity funds (12%) slightly exceeding direct private equity (10%).
Concentrated positions are a common source of family office wealth, often in a single company founded by the family that has grown significantly. Two-thirds of respondents globally indicated that they held concentrated positions in public or private companies.
Like concentrated positions, home bias – skewing holdings to one’s own region of the world – can represent a threat to existing wealth. However, we identified this phenomenon among the holdings of family offices from every region.
