New York (HedgeCo.net) – The Rothstein Kass Family Office Group, a division of global professional services firm Rothstein Kass, has published an extensive study of the evolving relationship between the single-family office (SFO) and investment management sectors. “Raising Capital from Single-Family Offices – Considerations for Financial Firms.”
Co-authored by Forbes Insights and Russ Alan Prince, a leading authority on private wealth, the report features the findings of a survey of 151 Executive Directors at single-family office operations for their perspectives on an array of topics impacting their businesses. Participants were polled in the first quarter of 2011 and were required to have current allocations to the hedge fund or private equity sectors.
Approximately 85 percent of single-family offices surveyed for “Raising Capital from Single-Family Offices” currently invest in hedge funds, with roughly half reporting active private equity sector investments.
Some highlights include:
– Mean investable assets of single-family offices stands at roughly $416 million in 2011, up from approximately $236 million reported in 2010
– Nearly all single-family offices rely on external investment management professionals, with roughly 22 percent also indicating internal investment management capacity
– Nearly 90 percent of Executive Directors surveyed suggest that they are highly likely to place additional money into hedge funds this year.
– The most popular strategies are long / short equity (53 percent), distressed (49 percent), arbitrage (33 percent), managed futures (25 percent), and global macro (25 percent)
– Almost 70 percent of survey participants plan to increase allocations to the private equity sector in 2011.
– Investment preferences are likely to include established companies (59 percent), mezzanine financing (39 percent) and second-round financing (32 percent)
“The unified approach to wealth management continues to resonate with high-net worth individuals and families, many of whom rely on investment allocations to fund a wide range of family concerns, including estate planning, philanthropic activities and lifestyle management. They increasingly found that a single-family office is ideally suited to manage these interrelated functions within a centralized structure,” said Rick Flynn, head of the Rothstein Kass Family Office Group. “Today, single-family offices represent vast pools of wealth – both individually and in aggregate. The objective-driven approach pervasive among the single-family office community only amplifies its allure by providing investment managers with access to capital with long-term investment horizons.”
Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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