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Laxman Pai, Opalesque Asia: Family offices plan to significantly grow their allocations to alternative investments this year, according to a report by KKR.
Family offices are investing to grow wealth with future generations in mind - 93 percent said this was a focus for their portfolios, according to a KKR survey of more than 75 family office CIOs who each oversee an average of $3 billion in assets.
We hear the message 'Loud and Clear' that this segment of the market is changing - and for the better," said Henry McVey, CIO of KKR's Balance Sheet and Head of Global Macro and Asset Allocation (GMAA).
"These investors are diversifying across asset classes, and as they mature, they are getting better at harnessing the value of the illiquidity premium to compound capital. They are also using better hedging techniques and increasing both their desire and ability to lean into dislocations, strengths that we believe will position them to be at the winner's table at the end of this cycle," Henry added.
According to the report, family offices are allocating more to Alternatives, with 52 percent of assets allocated to Alternatives on average, up 200 basis points since 2020.
Within Alternatives, there is meaningful diversification including a significant jump in allocations to Real Assets, it said.
Cash positions are still high at nine percent, which further confirms our thesis that many investors are under-risked for today's mark...................... To view our full article Click here
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