TLDR:
- The number of family offices has tripled since 2019, creating a new rush among private equity firms, hedge funds, and venture capital firms for investments.
- Family offices worldwide now manage $6 trillion or more and their ranks are growing rapidly.
Family offices tripled, creating a new gold rush on Wall Street
The number of family offices in the world has tripled since 2019, setting off a new race among private equity firms, hedge funds, and venture capital firms to attract their investments. According to a new report from Preqin, the number of family offices worldwide topped 4,500 last year, with a concentration in North America. Experts say family offices now manage $6 trillion or more, and their ranks are growing. With more than 2,600 billionaires in the world and the number of people worth $100 million or more surpassing 90,000, there is a significant growth potential for family offices.
Private equity firms like Blackstone, KKR, and Carlyle are aggressively targeting the family office market by expanding their teams and building products specifically to cater to family offices. Despite challenges in the past two years with private equity, venture capital, and hedge fund returns, family offices remain hopeful for better returns in the future. Blackstone, for example, is ramping up its Private Capital Group to serve family offices, billionaires, and sophisticated individual investors.
In conclusion, the explosion of family offices presents a lucrative opportunity for alternative investment managers, and the competition to attract family office investments is intensifying on Wall Street.
