Family offices set for growth in acquisitions and investments

By Newsdesk

March 08 2024
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Family offices are preparing for an uptick in acquisitions and investments in response to more appealing opportunities in the market, reports a new study from Ocorian, a leading global service provider for high-net-worth individuals, family offices, financial institutions, asset managers, and corporates.

Family offices set for growth in acquisitions and investments, according to Ocorian research

The research, which involved family office professionals across Europe, Asia, the Middle East, North America, and the UK, indicates an anticipation of a significant increase in buying activity. This surge is attributed to perceptions that company valuations are aligning more closely with reality.

An overwhelming 94% of respondents indicated that their family offices expect to enhance their acquisition and investment activities in comparison to 2023, with 18% forecasting a substantial increase. Only a small portion, 6%, project maintaining the current level of such activities.

The primary drivers for this expected growth include the adjustment of company valuations to more realistic and attractive levels, cited by 62% of respondents, and the increasing number of companies seeking investors due to the rising cost of debt, as mentioned by 60% of those surveyed.

Additionally, almost half of the respondents (49%) expressed a desire to boost direct investing levels, with 21% highlighting their cash-rich status, and 9% acknowledging the need for diversification.

The study also identifies investment grade credit as the segment most likely to experience significant growth in allocations from family offices, with 52% planning considerable increases in this area. However, investments are expected to grow across all alternative asset classes and global equities.

Amy Collins, Head of Family Office at Ocorian, shared insights on the findings: "The family office sector is growing rapidly and going through a series of tactical and more structural changes," noting a heightened interest in private equity and direct investment opportunities. Collins further highlighted, "this is a trend we identified in our research at the start of 2023 where almost all agree of the family office professionals questioned said that the sector is increasingly investing in alternatives and the switch is a long-term trend." She emphasized the sector's cautious stance during the pandemic, which shifted in 2023 as investments expanded across various sectors, particularly alternative funds.

Collins concluded by acknowledging the optimism among family office professionals for increased activity in 2024 but pondered whether this trend would continue into 2025 and beyond.

Ocorian boasts an award-winning dedicated family office team that offers personalized and comprehensive solutions to the challenges and opportunities faced by families, backed by a global presence and a deep understanding of client needs.

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