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Closeup of late 40s handsome executive man driving in the back seat of a luxury limousine and using a smart phone.  Gilaxia | E+ | Getty Images A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. Family offices are increasingly bypassing private equity funds and buying stakes in private companies directly, according to a new survey. Half of family offices plan to do “direct deals” — or invest in a private company without a private equity fund — over the next two years, according to a family office survey from Bastiat Partners and Kharis Capital. As they grow in size and sophistication, family offices are becoming more confident about finding and negotiating their own private equity deals. Since family offices — the in-house investment and service firms of high-net-worth families — are typically founded by entrepreneurs who started their own companies, they often like to invest in similar private companies and leverage their expertise. More than half (52%) of family offices surveyed prefer doing direct deals through syndicates, where other investors take the lead, “reflecting a cautious approach and reliance on the expertise of established sponsors,” according to the report. “Family offices are being gradually recognized as an economic powerhouse in private markets,” according to the report. The big challenge for family offices as they do more direct deals is so-called “deal flow,” or the volume of possible deals. Since most deals are either unattractive or not suitable, family offices may see 10 deals or more for every one that works, according to the report. At the same time, family offices fiercely protect their privacy and prefer to remain largely unknown to the public. Without a public…

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Filed under: News - @ November 12, 2024 3:29 pm