Family Offices Shift Investments: Stocks Up, Private Equity Down

Family Office Investment Trends

• 📈 Family offices are increasing their allocation to stocks to the highest level in years, planning to boost them to 29% of portfolios.
• 📉 Simultaneously, they are trimming private equity investments, reducing them from 35% to 27%.
• 🇺🇸 US markets have outperformed global averages, with family offices keeping 86% of their investments domestically.

Drivers of the Investment Shift

• 💡 The primary driver for increased stock investment is the theme of Artificial Intelligence (AI), with public markets offering the only accessible exposure to major AI companies.
• ⚠️ A lack of exits in private equity makes it less attractive, as investors cannot easily retrieve capital from their investments.
• 💰 Family offices are also moving cash out of cash holdings and equivalents for the first time in four years, redirecting it into stocks.

Evolution of Family Offices

• 🏦 Family offices, typically managing $100 million or more, have seen the minimum investable asset requirement increase to around $200 million.
• 📊 The data reflects investment trends up to the beginning of April, with rapid market changes potentially altering these allocations.