“Almost all of the family office professionals questioned said that the sector is increasingly investing in alternatives and the switch is a long-term trend. Around 42% strongly agree with the view,” Amy Collins, head of family office at Ocorian, said of a recent poll. Photo: Ocorian

“Almost all of the family office professionals questioned said that the sector is increasingly investing in alternatives and the switch is a long-term trend. Around 42% strongly agree with the view,” Amy Collins, head of family office at Ocorian, said of a recent poll. Photo: Ocorian

With 94% of family offices planning acquisitions and nearly half focusing on direct investments, 2024 is poised to be a year of strategic evolution and active market engagement, observed Ocorian in a recent note to clients.

A consensus has emerged that family office principals are increasingly opting for “active engagement and strategic evolution” in their choices. That is according to a survey of 134 global investment managers overseeing family offices with assets totaling $62.45bn published by the corporate and fund services provider Ocorian. Interestingly, a significant portion, 94%, of these family offices are preparing for acquisitions in the year 2024.

“An active year ahead for family offices,” Ocorian noted, pointing out two main factors driving this trend. Firstly, family offices are increasingly focused on realistic valuations, with 62% citing this as a significant factor in their heightened interest in acquisitions, reflecting a balanced and thoughtful investment strategy. Secondly, the research highlights a strategic shift among nearly half of these offices, 49%, who now show a preference for direct investments in companies over traditional investment routes.

This shift signifies a broader evolution within the family office sector, reflecting a move towards a more hands-on approach in managing investments and diversifying portfolios across various asset classes, said Ocorian. Amy Collins, head of family office at Ocorian, highlighted the sector’s rapid growth and the tactical and structural changes it is undergoing. According to Collins, “family offices [are] set to go on a buying spree,” a trend driven by several factors--these include the effects of historically low interest rates and a generational shift in investment preferences towards private equity and direct investments.

The research, which began in early 2023, revealed a growing interest among family offices in alternative investments, a trend that 42% of professionals strongly agreed with. This interest partly stemmed from the cautious stance many family offices took during the pandemic, which shifted in 2023 as they increased their investments across a range of sectors, particularly in the alternative fund sector.

Despite the optimism for increased activity in 2024, there are concerns about whether this momentum will continue into 2025 and beyond, especially given the backdrop of widespread regulatory worries, remarked Collins.

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