Surveys

Survey Finds Most Family Offices Are Satisified With Private Equity Investments

Tom Burroughes Editor London 25 March 2010

Survey Finds Most Family Offices Are Satisified With Private Equity Investments

The overwhelming majority (84 per cent) of 34 family offices surveyed by Preqin, the research firm, say they are satisfied with their private equity investments and 69 per cent of them are considering forming new general partner relationships.

General partners – those who raise the money from investors - must be aware of how the needs of family offices differ from those of other investor groups, Preqin said in its report. It said that more than a quarter (27 per cent) of respondents to its survey said they wanted a closer relationship with GPs.

The track record of a GP is extremely important to family offices: 82 per cent of respondents said this was a key quality they seek.

Of those family offices that want changes to be made to the fund terms and conditions they are offered, 59 per cent felt management fee alignment needed improvement.

Some 19 per cent of family offices feel their private equity investments have exceeded their expectations compared to just 7 per cent of all institutional investor types surveyed by Preqin in December 2009. A further 65 per cent of family offices feel their private equity investments have met their expectations.

“We expect that family offices will grow in importance over the course of the next few years, and we are already seeing an increased number of requests for information on this generally reclusive set of investors from our clients on the road seeking capital for new vehicles.” Preqin said.

Among the 34 family offices surveyed, 53 per cent were in Europe, 32 per cent in North America, and 15 per cent in Asia/rest of the world.

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