But there is a problem…
We have been through this before.
We use crisis-tested action plans so investors like you gain control.
Properly monitor the health of your private direct and private fund portfolio and activate expert resources to achieve the results you want during times like these.
40% of family capital is allocated to alternative investments including 34% to illiquid private fund, direct, and real estate investments and 6% to other illiquid/hedge funds. This substantial capital allocation once again mirrors the size and scope of institutional endowments.
There is Growing Demand for Private Directs
Family offices have been increasing allocations to direct investments – a debt or equity structure directly into an operating business. Direct investments can be a good fit with a family’s patient capital but such long holding periods and high concentrations amplify risks.
“Only a few of the investments will face challenges.” CIO, SFO
“I’ve met my commitments, so they won’t need any more money.” Matriarch, SFO
“We get updates every 3 months, so wait and see.” COO, SFO
“Our Big 4 audit report says the investment is at par value and holding up.” Board Member, Private Direct Investment
More at Risk | including unresolved conflicts of interest.
Incorrect Valuations | overstated or understated.
Liquidity Crunch | distributions slowed or stopped while capital calls increased.
Distressed Buyers | offered deep discounts to buy assets.
Holding Periods Extended | by as much 10+ years.
Disclosures Declined | leaving investors with little clarity on future expectations.
More than a Full Recovery
of a Highly Distressed Portfolio
Generated and protected
Produced significant liquidity
in a dramatically reduced timeline