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Komfie Manalo, Opalesque Asia:

A joint study by data provider Campden Wealth and investment management firm KKR has found that a majority of family offices are looking at private equity for opportunities. The study, "Private Equity and Co-Investing for Family Offices", found that on average, private equity makes up 21% of a family office portfolio - the highest proportion of any asset class. Also, eight in 10 family offices intend to maintain or increase their allocations to this asset class going forward.

Campden Wealth said that the research builds on quantitative data collected for Campden Wealth's Global Family Office Report 2016 (GFO). It provides insight based on interviews with family office executives which explain and contextualize some of the key trends, including factors which motivate family offices to invest in private equity, the problematic gap between expected and realized returns, as well as advantages and disadvantages of passive and direct approaches to private equity investing.

The study said, "Based on data collected for the GFO 2016, allocations to private equity represented over a fifth (21%) of the average family office portfolio. A 2% increase from 2015 was reported among multi-year participants in the study (family offices who participated in the GFO in 2015 and 2016)." Family office executives who participated in qualitative interviews earlier this year pointed to diversification benefits and the potential of higher returns as the k......................

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