Dentons has published its Family Office Direct Investment Survey Report, following a survey of nearly 200 family offices from 32 countries. Survey respondents included family members, C-suite executives, investment professionals and other family office staff members.
The firm writes that the report outlines the key factors driving family office investment strategies and outlook for 2023 and includes data on family offices from multiple sources so that the analysis reflects how family offices are actually approaching their direct investing globally.
Key findings include: scepticism around digital asset investment is on the rise, but some family offices are still looking at this asset class
Improved deal flow is the top priority for family offices in 2023
Family offices are defensively positioned amid market volatility
Family offices are grappling with numerous direct investment challenges, including taking on too much operational risk (45 per cent of respondents), finding high-quality deal flow (43 per cent), having control of exit options (42 per cent) and finding enough time for proper due diligence (41 per cent)
Family offices use diversification with 85 per cent of family offices believing in broad diversification of factors, and 74 per cent using diversification across geographies
65 per cent of respondents agree that deep expertise in specialist areas is the most important criterion when selecting an external partner, service provider or supplier
“Dentons is the first law firm to produce a report of this kind,” says Edward Marshall, Dentons’ Global Head of Family Office. “This analysis, informed by leading family office principals and executives globally, had not existed before now. The report provides actionable, differentiated, and valuable insights to our clients and the broader family office community as investment strategies for 2023 are refined. Family offices now have data where they can evaluate their direct investment-related activities against peers of their own size and geography. This decision-making intelligence is what we aim to provide our family office clients worldwide.”
