Family offices are pouring money into private markets — just not VC
One of the country's largest multi-family office managers says there are significant shifts underway in how the country's wealthiest families are allocating capital.
Australia's wealthiest families are pouring capital into private markets but have pulled back on venture capital due to a lack of exits, according to one of the country's largest multi-family offices.
Mutual Trust head of wealth Jono Gourlay told Capital Brief the growing investment in private markets was a function of families having a long-term time horizon which gave them the ability to withstand illiquidity. The strong risk adjusted returns on offer and an increase in the level of investment sophistication of investors were also factors, he said.
“We’ve got some ultra high net worth clients that have up to 50% allocated in private market investments because they can tolerate it,” Gourlay said.
“Their balance sheets are big enough to do it and they see private markets as a good way to grow their corpus over the long term with high quality risk adjusted returns coming from private markets.”
