46% of North American family offices are set to increase their Private Equity investment allocation in 2023 according to a recently published report by Campden Wealth.
Interestingly, this is despite 66% of the 176 surveyed stating their focus is on wealth preservation rather than out-right growth. This increased shift of funds towards private equity asset classes, suggests manoeuvres to combat surging inflation and reduced confidence in bearish public markets. For family offices in 2023, a reasonable level of growth-orientated investments appears to be the general sentiment – private equity investments portfolio allocation averaged 27% in 2022, up from 22% in 2021.
The report also highlights the continued support of technology investment (despite significant market corrections within the sector over 2022).
“Family offices have long been avid investors in technology, with healthcare tech, biotech and fintech being the three most prominent areas they invest in”
– Dr. Rebecca Gooch, Campden Wealth’s senior director of research.
Venture capital investments into these sectors are becoming more and more attractive given the potential for significant returns amidst a poor performing public market. Indeed, 35% of those surveyed stated they expected to increase Venture Capital investment specifically.
These strategies by North American family offices seem to be paying off, with their average portfolio returns 2% higher than their European equivalents (and 5% higher than those in Asia). The report suggests this is as a direct result of their increased allocation to growth orientated investments in the private equity asset class.
Finally, we also see an increase in sustainable investing from family offices with over a third (37%) actively deployed in these opportunities. Mark Fell, RBC’s head of family office and strategic clients, believes this is primarily down to the influence of the next generation on family office fund allocations.
Óskare Capital is in the fortunate position of satisfying all three of these sentiments. Óskare’s Venture Capital Fund I gives investors access to a novel and fast growing biotech and healthcare sector with a highly sustainable investment thesis.