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According to the 2024 Global Family Office Survey, family offices are more dynamic than ever, embracing new strategies to manage and grow their wealth in the face of an evolving global landscape. Based on my experience working closely with family offices, I’ve seen many of these trends firsthand, and I can say with confidence that these organizations are taking the right steps to secure and expand their wealth across generations.
So, what are family offices focused on this year and into the future? Here are the seven major areas they’re prioritizing:
1. Family Office Trends: Shifting from Cash to Assets
Family offices are no longer playing it safe with large cash reserves. This year, there’s been a significant move from cash to more growth-oriented assets. Nearly half (43%) have increased their exposure to both public and private equity. Allocations to cash have dropped, with only 31% of family offices maintaining significant liquidity reserves, down from 47% last year. This move signals their optimism, as 97% expect positive portfolio returns over the next 12 months, with many anticipating returns above 10%.
2. Private Equity Takes Center Stage
Private equity continues to dominate family office portfolios, with direct investments and private equity funds leading the way. Around 47% of family offices are particularly bullish on private equity, and 75% are actively engaged in direct deals. This focus on private equity offers greater flexibility and return potential, especially for family offices seeking growth in areas like technology, healthcare, and real estate, including multifamily investments. Multifamily real estate, in particular, remains an attractive sector due to its stability and potential for consistent cash flow.
3. Real Estate as a Stable Asset Class
Speaking of real estate, family offices aren’t ignoring this tried-and-true investment. Despite rising interest rates, allocations to real estate have remained remarkably stable, with 55% of family offices keeping their real estate exposure unchanged. Multifamily real estate continues to be a key focus, as it offers both diversification and income stability in uncertain markets. Many family offices view multifamily properties as a hedge against inflation, with demand for housing staying strong across markets like the U.S.
4. Interest Rates and Fixed Income
The global interest rate environment is the number one concern for family offices in 2024. With 52% of respondents citing interest rate uncertainty as their primary worry, we’ve seen a marked increase in allocations to fixed income. These higher yields, especially in regions like Europe and Latin America, have attracted family offices seeking safer, interest-bearing investments. As a result, fixed income now accounts for 18% of portfolios, up from 16% last year.
5. Technology and AI Investment
Family offices are finally stepping up their tech game. Half of all family offices now have exposure to artificial intelligence (AI), particularly through private equity and public markets. While only 10% have implemented AI into their internal operations, many are exploring how to leverage AI for tasks like wealth reporting, forecasting, and even risk management. AI is no longer just a future consideration—it’s becoming a key component of investment strategies that target long-term growth.
6. Sustainability and Impact Investing
Sustainability is now a core part of family office strategy. Many are integrating impact investing into their portfolios, focusing on opportunities that align financial returns with positive social and environmental impact. Real estate, again, plays a pivotal role here, particularly in sustainable development and energy-efficient multifamily projects. Family offices increasingly see impact investing not just as a way to align with family values but as a smart financial decision for long-term wealth preservation and growth.
7. Cybersecurity: A Growing Concern
With growing digital operations comes greater vulnerability. Over 40% of family offices have experienced a cyberattack in the past two years, prompting a surge in investment in cybersecurity measures. As family offices continue to adopt new technologies, safeguarding sensitive financial and personal data has become an essential part of their risk management strategies.
Family offices in 2024 are navigating complex global challenges while continuing to expand their wealth. Whether through multifamily real estate investments, private equity, or cutting-edge technology, they are proving their ability to adapt and thrive. The future looks bright, and as long as these offices remain focused on long-term, resilient strategies, they’ll continue to build and protect wealth for generations to come.
P.S. If one of your priorities, like mine, is building and preserving your wealth through multifamily real estate investments, click here to download my new eBook: The Ultimate Guide to Creating & Preserving Your Wealth.
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About Ellie Perlman
Ellie Perlman is the founder of Blue Lake Capital, a commercial real estate investment firm specializing in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.
A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.
Ellie is the founding host of REady2Scale, a podcast that highlights the assets, processes, and strategies for the multiple approaches to successful real estate investing.
She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.
Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can read more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.
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