The move comes in response to rising demand for private market investing.
This week Moonfare, the Germany-based digital private equity platform, launched a private market investing platform for eligible family offices.
According to the firm, around 60 per cent of family offices surveyed by Moonfare, and the UK-based association Global Partnership of Family Offices, said they have increased their allocations to private markets over the last two years.
By contrast, the survey found that interest in traditional public equities has waned, with well over 50 per cent of respondents saying they have reduced exposure to both public equity and fixed income.
Family offices have historically tended to allocate to private markets. However, this is becoming more pronounced in an environment of rising interest rates and inflation, the firm continued.
Research has shown that assets such as private equity have outperformed public markets in recessionary periods.
In the survey, respondents highlighted the potential for high risk-adjusted returns as ‘significant benefits’ of private markets, with over 80 per cent of respondents giving this feedback.
Moonfare founder and CEO Steffen Pauls said: “Like all wealth and money managers, family offices have experienced a sudden shift in the investment landscape. They need to adjust to meet the needs of the next generation.”
“Inflation has reached levels many have not experienced before, and 60/40 stock-bond portfolios are down by almost 20 per cent. Our results show that many family offices have been quick to adapt to current macroeconomic conditions, while keeping an eye trained on emerging opportunities. However, fund managers without a meaningful exposure to private markets may be doing their clients a disservice.”
He added: “We have launched the Moonfare Private Investment Office (MPIO) to further strengthen our growing base of more than 80 family offices. It's dedicated, fully-digital platform will support family office clients as they adapt to changing market circumstances and construct a well-diversified private market investment portfolio.”
MPIO offers a tailored service for eligible family offices, which facilitates their access to exclusive private market funds, including US tech funds by top-tier managers as well as co-investment opportunities, the firm continued. It grants family offices institutional insight and transparency by offering a forward-looking fund pipeline, proprietary due diligence reports on target funds ahead of their launch, and access to GP webinars and fund reporting.
The move follows an earlier statement by Moonfare which showed that its assets under management rose by almost 90 per cent in the 12 months to end-September 2022 to €2.18 billion ($2.53 billion).
Demand by investors for alternative assets has surged because investors seek alternatives to listed equities to obtain yield and refuge from inflation and volatility, Moonfare said. The firm has been riding a wave of such rising demand.