European family offices allocate about 25 percent of their average portfolio to private equity, according to a report from placement agent and secondaries advisory firm Cebile Capital.
Family offices in the region averaged a 15 percent private equity allocation five years ago, the report revealed.
“Family offices in Europe are increasing their allocations to private equity and can be a source of consistent capital for many of our clients,” managing partner Sunaina Sinha said.
However, European family offices are not necessarily eyeing commitments to private equity secondaries funds.
About 50 percent of European family offices surveyed prefer to commit to venture capital funds; while 41 percent prefer buyout funds and 39 percent favour growth funds.
“I think a lot of European family offices are very open to evaluating secondaries funds as part as their portfolio, but they have a strong preference for venture and buyout,” Sinha said.
European family offices’ preferences are driven by their long-term investment approach to preserve wealth.
“They don’t mind locking up the capital and they don’t necessarily need a shorter j-curve. It’s a very small subset that feel the need to do that type of investing,” she added.
Earlier this year Secondaries Investor reported two secondaries fund commitments from European family offices. Fleming Family & Partners and Connection Capital each committed to 17Capital Fund III.
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