How family offices and hedge fund managers are forging closer ties

Pieter de Vries Robbe, Arent Thijsen, Harold de Boer, Jos van Trier, Rob van Kuijk, Gildas Le Treu t

Family offices are seeking dedicated access to investment strategies or technologies that are not normally available to them. By entering close partnerships with skilled independent investment managers, family offices are increasingly able to access a diverse range of proprietary trading and investment talent while allowing those outsourced managers to focus on what they are good at.

Speaking at the latest Opalesque 2017 Netherlands Roundtable , Jos van Trier, partner and founder of TRZ Funds, explained that he is seeing this type of "cooperation and integration" particularly from larger family offices.

He told the Roundtable participants, "We see such a new form of cooperation and integration as an interesting direction and preference from the investor side, particularly from larger family offices. This is more than the traditional multi-family office fund services or managed account approach."

Integrating managers directly in the investor's portfolio management

Van Trier also observed that for many investors, hedge funds have become almost a commodity product to everybody. Investors, including institutional investors, go through an identical due diligence questionnaires (DDQs) process covering all kinds of questions, "and then go ahead with what seems like buying funds from the shelf."

However, there may be a new trend in the international family office space, where larger family offices are not selecting investors as part of a standard due diligence process to invest into a standard product, but they actually want to integra......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.