As the tide goes out, family offices are fretting over their risk exposures, including investments in their own portfolios, which have failed to perform due to bad luck or flawed decisions.
After canvassing 170 family office managers, Matthew McGrath, founder of Emissary Partners, has found duds typically comprise 5% of their portfolio – sometimes more.
We often see legacy assets that are difficult for family offices because they predate the principal or an investment team. It’s where a family no longer feels it has control or visibility over an asset
Matthew McGrath, founder of Emissary Partners
For years, their poor, or zero, returns were concealed by rising markets. Emissary makes a living by analysing the problem, and suggesting a course of action.