What Does an Elite Family Office Portfolio Look Like?

What is the end-state asset allocation that elite family offices choose?

• Traditional wealth managers have famously used the “60:40” portfolio of stocks and bonds.

• Elite family offices turn this strategy on its head with a new type of “60:40” portfolio:

  • 60% in traditional assets (stocks and bonds)

  • 40% in alternative assets

• Private equity accounts for over 20% of the total portfolio

• This is based on a study with n=320 single family offices with an average net worth of $2.6 billion from the latest UBS 2024 Global Family Office Report.

While there are certainly differences in managing a $2 billion portfolio than a multi-million dollar portfolio…

…there are some important lessons we can learn from elite family offices and the rationale for incorporating high quality alternatives like top tier private equity managers:

1. Risk Mitigation: Diversification across asset classes (both traditional and alternative) and geographies reduces portfolio risk.

2. Capital Preservation: A focus on high-quality investments ensures wealth is preserved.

3. Long-Term Horizon: Prioritize investments that offer sustainable, long-term growth.

4. Multi-generational Outlook: Aim for sustainable growth over multiple generations.

5. Growth Opportunities: Private equity and venture capital can unlock outperformance over long term horizons.

6. Manager Selection Matters: Choosing top-tier investment managers enhances chances out outperformance.

At Gather Capital, we strive to curate a set of world class alternative investment opportunities, especially within private equity, that enable our clients to invest alongside many of these elite family office limited partners.

We are investing into a wide range of opportunities from:

• multi-billion dollar sized funds from blue-chip firms with multi-decade track records of top tier returns…

• …to sub-billion dollar sized funds led by highly sought after emerging managers.

If you’re interested in learning more about what we do, feel free to:

• swing by our website & create an account (if you haven’t already)

• grab some time on our calendar here

• shoot us an email

We’re looking forward to Talking Shop with you soon.

Sincerely,