Family offices are playing it safe with their investment portfolios. Selling non-core assets, and remaining conservative with respect to seeking opportunities is a theme that some industry professionals are seeing.
Lex van Dam, founding member of SFO Alliance and head of deal sourcing for family office, Rinkelberg Capital, comments: “By their very nature, family offices are very secretive, so it’s hard to get concrete information on the extent to which they may or may not be exploring co-investments with other families.”
Combine that with the fact that interest rates are rising. This dampens valuations and creates an incentive to triage your portfolio and look at what’s working and what’s not working.
Lex van Dam, founding member of SFO Alliance
The SFO Alliance is one of the largest networking memberships for family offices to share ideas and insights on deals and funds across asset classes.
Someone who wants to invest in a credit fund could, for example, speak to a family office that has already assessed 50 funds and shortlisted three. This can potentially lead to co-investment opportunities, but in van Dam’s opinion, the emphasis right now is more on sharing information than actively seeking out potential deals.