Ocorian: Family offices are boosting their exposure to alternative assets
The need to diversify investment holdings is driving increased exposure to alternative assets among family offices, new global research from Ocorian shows.
Ocorian’s study among family members, senior family office employees and intermediaries working for family offices with total wealth of $68.26 billion found fund managers plan to increase their exposure to all major alternative asset classes with none planning to reduce their exposure.
Infrastructure is likely to see the biggest increases in allocations over the next two years – almost two-thirds (64%) of family office investment managers expect to increase allocations by between 25% and 50% over the next two years. Just over a fifth (22%) plan similar increases in real estate while a third (32%) expect to boost allocations to private debt by a similar range. Around 21% expect to do the same for private equity.
The diversification benefits of alternative assets was identified as the key reason for increasing allocations ahead of the increased transparency of the asset class. The ability of some alternative assets classes, such as infrastructure, to provide an income was rated the third most important benefit of investing in alternatives.
Recent strong performance was ranked fourth in the attractions of investing in alternatives for family office fund managers, ahead of greater choice in the sector which was ranked fifth and the ability of some alternative asset classes to provide protection against inflation at sixth.
