NEWS AND INSIGHTS FROM FINTRX
The family office space was once largely considered secretive and difficult to access, if not inaccessible. Though in recent years, a growing number of firms look to family offices for funding - thanks to its freedom from institutional mandates, long-term staying power, potential for add-on fundraising and overall flexibility. To help shine light on the private wealth ecosystem, FINTRX offers an inside look at the transformation of these sought after entities.
As more capital raisers turn to the space for funding, family offices are finding it advantageous to become forward-facing. Going public with their investment criteria, portfolio and contact information allows them to gain new partnerships and gives capital raisers access to a niche, untapped pool of capital. As family offices continue to increase transparency, it has become evident that these groups are highly interested in alternatives - an advantage for hedge fund managers, venture capitalists and the like.
With family offices seeking a variety of companies and funds (both public and private) with which to diversify investment portfolios, it only makes sense that these groups would begin to make themselves more public. In previous years, family offices would be shrouded in secrecy, keeping a close cover on their wealth and activities. Nowadays, it is not uncommon to see a large single-family office, such as Hong Kong business magnate Li Ka-Shing's Horizons Ventures for instance, coming forward with details of their past investment history.
Another benefit for ultra-wealthy single-family offices to go public is the ability to network with and learn from other offices, swapping ideas and making introductions. Barron's notes, "many single-family office practitioners, once happy to work alone, are now eager for insights they can gain from their peers and will seek out opportunities to network with the right people." Investors benefit from flexible capital and family offices have the opportunity to make new connections.
Since inception, the FINTRX family office data and research platform has compiled over half a million data points on over 2,750 family offices globally, with continuously updated insight on the 11,000+ family office contacts that work within them. As a result, we are able to share reliable intelligence on this economically significant space. Understanding the industry or way in which the principal made his or her wealth is often a predominant theme into how the group operates and deploys capital. To read more on why, download our infographic to see a visualization of the industry origin of wealth for over 2,750 family offices worldwide.
September 19, 2018