Family Offices to Focus on Private Credit, Infrastructure and Private Equity

The recently released KKR 2023 Family Capital Survey, Loud and Clear, found family office CIOs plan to increase their exposure to private credit, infrastructure, and private equity — reducing their holdings in public equities and cash. The report, based on a survey of 75 family office CIOs, offers a detailed look at asset allocation strategies and issues affecting investments such as global security, industrial automation, AI, and labor productivity.

Most (60%) of the survey respondents have between $1 billion and $5 billion AUM; 40% are in the U.S., with 37% in EMEA.

The survey also found:

  • More than 70% of respondents align investment teams’ compensation to the performance of the investment portfolio.
  • In a detailed look at AI — and how it will affect everything from investment strategies to power consumption — the survey asked how respondents think AI will affect their family office. The most common response (38%) was that it will lead to opportunities to invest in tech-enabled businesses. A smaller group (18%) said it will provide opportunities for efficiency in their employment model. Just 8% said it would lead to disruption and value destruction of existing assets. And 38% answered “all of the above.”
  • More than three-quarters (77%) of respondents have a family member on their investment committee. Just 41% have an external advisor.
  • Regional differences were clear in answer to a question about the primary risk to markets today. Overall, more pointed to geopolitics than to inflation, but for U.S. respondents, inflation was the top worry.
  • Almost all (93%) of respondents said a primary focus of their family office is growing assets; 44% cited preserving capital, and 35% said generating income.

The KKR report generated coverage by a number of outlets:

About the Author

Margaret Steen

Margaret Steen is the editor of FO Pro, The Family Office Professional. Based in Silicon Valley, she has written for Family Business Magazine for more than 15 years.


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