UBS's annual Global Family Office Report found that surveyed single-family offices allocated more new capital to direct private investments than to third-party fund commitments for the first time since the survey began, a milestone the bank called a structural shift in allocator behaviour.
The report, covering more than 320 family offices with combined net worth exceeding $600 billion, found average private markets allocation now stands at 22% of total assets, up from 16% five years ago.
Why direct
Respondents cited fee avoidance, greater control, and a desire for closer relationships with portfolio company management as the primary drivers of the shift toward direct deals over blind-pool fund commitments.