Family offices are by nature conservative, but in recent years they have stepped out of their mold and began to invest in several asset classes including private equity (PE). This change in tack has earned them much profit over the past few years but it has also exposed them to the recent financial turbulence. In the past, family offices have been reluctant to embrace PE because of both cultural and structural preconceived notions about ownership. But these notions have largely been set aside in recent years by the promise of expansion and high return on investments (ROIs). That said, with valuations at all time lows, it’s no wonder that regional institutional investors remain reluctant to move capital as their primary concern now is to preserve or liquidate their portfolios. This is especially the case for family conglomerates that are reported to own between 70 and 90 percent of all businesses
