Latest news with #family offices
Forbes
12-08-2025
- Business
- Forbes
Unlocking Liquidity: Private Market Secondaries And Family Offices
Evan J. Renov, Cofounder & Managing Partner at Arieli Group. For family offices seeking liquidity, pricing efficiency and access to top-tier assets, the private secondary market has become an increasingly important part of the private capital ecosystem. In recent years, the private secondary market has quietly moved from the margins to the mainstream. As private markets become more efficient and act more like public markets, investments in secondaries are here to stay. Investing in secondaries can create liquidity for investors and, with a quicker timeline to exit, can also be less risky than early-stage investments. Historically, the private secondary market presented meaningful barriers to entry for many investors, particularly family offices. Information asymmetry, complex transaction processes and a lack of standardized platforms meant access was largely reserved for those with deep networks and specialized legal and operational expertise. But over the past several years, those dynamics have fundamentally changed. The rise of purpose-built private market platforms, supported by advances in artificial intelligence (AI), has improved market transparency, simplified legal complexities and made pricing discovery significantly more efficient. At my firm, we are backing this innovation with investments in private market platforms that are democratizing access to a once-exclusive asset class and positioning secondary investments as a key tool for portfolio diversification and liquidity management. Notably, secondary transactions accounted for over 70% of venture capital exits in 2024 (paywall), a signal of the market's growing importance. For family offices managing long-term capital, secondaries offer something few asset classes can: the ability to access high-quality growth companies while retaining flexibility, optionality and shorter exit horizons. What's more, secondary markets function as an engine of liquidity. Secondaries: Giving Family Offices A Pathway To Diversification Family offices are often structured around long-term value creation and legacy-driven investment goals. With a growing share of capital tied up in long-horizon investments, even the most patient investors can face near-term liquidity constraints. Secondary investments can help alleviate this tension. Traditional direct investments often require investors to enter at early stages and hold until IPO or acquisition, sometimes as long as a decade or more. In contrast, secondary transactions allow entry in later growth rounds with the potential to exit within a few years. This ability to enter and exit with greater precision allows family offices to reallocate capital more efficiently, support a broader range of opportunities and better manage exposure across sectors. At the same time, many family offices continue to prioritize long-term impact and legacy. They are uniquely positioned to invest in breakthrough technologies in sectors such as healthcare and the life sciences, where clinical development can span many years, precisely because they are not constrained by short-term return expectations. Secondary investments, when used strategically, provide the liquidity needed to fund these long-horizon opportunities without sacrificing flexibility elsewhere in the portfolio. Liquidity also contributes to portfolio resilience and the ability for families to reinvest their capital in new, innovative opportunities. Strategic Questions To Guide Private Secondary Market Participation As family offices increasingly explore private market secondaries, thoughtful due diligence remains critical. Here are five strategic questions to consider when evaluating opportunities: One of the advantages of the private secondary market is access to more mature companies with proven business models and clear paths to exit. While early-stage investments may offer higher potential upside, secondary transactions in later-stage companies reduce risk and allow for more targeted exposure. In many cases, early-stage participation is better suited to direct investments, while secondary strategies align more effectively with companies approaching exits. Certain sectors lend themselves more naturally to secondary investments. Cybersecurity, for instance, is a fast-moving space with frequent merger and acquisition (M&A) activity and shorter timelines to liquidity. By contrast, industries like biotech, pharma and medtech that are critical for long-term impact often involve extended development cycles and are better aligned with longer-term, direct investment strategies. In an era of increasing transparency, family offices have greater access than ever to data on company performance, capital structure and forward-looking plans. Between regulatory disclosures, industry research and AI-enabled diligence tools, investors can better assess whether a company is likely to pursue an IPO, attract acquisition interest or require additional funding. Understanding a company's trajectory is essential for determining timing and risk. Every secondary deal is unique. Investors should evaluate whether they're purchasing shares directly from an existing shareholder or through intermediaries, and whether additional management fees or layers of ownership could dilute returns. A clear understanding of the deal structure, including rights, restrictions and timing, is essential for making informed decisions. In the secondary market, investors are not only acquiring equity; they are positioning for a future event. Whether the goal is to hold until IPO, sell in a future secondary round or exit via strategic acquisition, having a defined path to liquidity is key. Even in shorter holding periods, investors should identify likely future buyers and evaluate overall market conditions that may support a timely and profitable exit. Building A More Agile Portfolio The future of private market investing is becoming more liquid, more data-driven and increasingly empowered by technology as innovation in investment platforms and operations continues to evolve. For family offices managing intergenerational capital, secondary investments may offer a valuable lever to balance long-term vision with near-term agility. Whether used to unlock capital for new opportunities, manage concentration risk or achieve greater diversification, private market secondaries are increasingly becoming a strategic imperative, not just an opportunistic allocation. As infrastructure continues to improve and market acceptance deepens, the opportunity set for family offices will only expand. Those prepared to embrace the private secondary market thoughtfully and strategically may find themselves well-positioned financially and on the path toward a greater mission of creating enduring prosperity. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
South China Morning Post
11-08-2025
- Business
- South China Morning Post
Goldman Sachs champions legacy planning as US$6.1 trillion wealth transfer looms in Asia
Goldman Sachs is pushing legacy planning in Asia, including succession and philanthropy, as family offices boom and family-owned businesses continue to dominate the region. The changing regulatory landscape, growth of family offices and high proportion of family-owned businesses in the region made it a 'particularly important period' for wealthy families to engage in generational transition, manage legacies and navigate tensions, said Carra Cote-Ackah, head of legacy planning and philanthropic engagement at the bank's private wealth-management division. The US investment bank aimed to provide 'best resources' ranging from advisory and fiduciary to philanthropy to Asia's unique clientele, who were often first-generation wealth creators in innovative and disruptive industries, she said in an interview recently in Hong Kong. With industry estimates showing that around 85 per cent of Asia-Pacific companies were family-owned, generational legacy planning was crucial to ensuring business sustainability, preserving family wealth and maintaining harmony across generations, according to Cote-Ackah, who was in town for Goldman Sachs' summer series for the next generation of its wealthy clients. More than US$31 trillion of wealth could be passed to the heirs of affluent individuals globally in the next decade, according to a report by research firm Altrata in June. Photo: dpa 'Your family legacy is what you build together, not just what you leave behind,' Cote-Ackah said. Sometimes founders are very clear on their long-term vision for the business, but have not really reflected on their long-term vision for themselves without the business, she said.
Khaleej Times
10-07-2025
- Business
- Khaleej Times
A new era for private markets: How diversification and innovation are reshaping the future
The private markets sector is undergoing a period of substantial and simultaneous transformation. In a landscape where norms are being challenged like never before, and on multiple fronts, asset managers, investors, and jurisdictions alike are responding to changing expectations, emerging investor profiles and accelerating innovation. At the heart of this transformation is a key theme: diversification. A recent white paper, Trends in Alternative Investing, published by IFI Global in partnership with Jersey Finance, explores the macro forces shaping the future of private markets - from shifting investor dynamics to the rise of digital investment models and non-traditional fund structures. Investor diversification: Beyond institutions Following more than a decade of strong growth, many institutional investors, particularly pension funds, have reached their allocation ceilings for alternative investments. A slowing IPO market has added further constraints, prompting asset managers to seek new sources of capital beyond their traditional investor base. High-net-worth individuals and family offices are coming into focus. Despite historically low allocation to alternatives - just five per cent of this investor segment had exposure in 2022 - research shows that more than half plan to increase their allocations in the next three years. This presents a clear mutual benefit: asset managers gain access to underutilised capital, while investors gain exposure to private markets that were once difficult to access. However, challenges remain. Accessing alternatives can be opaque, costly and dependent on existing advisor relationships. High minimum investment thresholds and liquidity constraints further complicate participation. Product and structure innovation: Expanding access In response, managers are embracing structural innovation. Beyond traditional pooled funds, the rise of managed accounts, co-investments, funds-of-one and hybrid vehicles reflects a broader shift towards customisation. Fees have decreased, particularly for managed accounts, making them more accessible to a broader range of investors. This trend is accelerating globally, with fund jurisdictions reporting notable growth in demand for flexible, non-traditional structures. New entrants to the market are often focused on structuring optionality - meeting investors where they are with bespoke vehicles tailored to their objectives. Digitalisation and tokenisation: The new access frontier Perhaps the most transformative development lies in digitalisation. Blockchain-based infrastructure and tokenisation are lowering barriers to entry in the private markets space. Tokenised assets can offer greater transparency, enhanced liquidity and significantly reduced minimum investment thresholds, particularly beneficial for high-net-worth and potentially even retail investors in the near future. Forecasts suggest tokenised market capitalisation could reach $2 trillion by 2030 (McKinsey, 2024). High-net-worth investors are expected to allocate an average of 8.6% of their portfolios to tokenised assets by 2026, surpassing institutional counterparts (EY Parthenon, 2023). Tokenisation also holds promise for high-value investments such as real estate, infrastructure and private equity. While regulatory uncertainty persists - identified by 24% of high-net-worth investors as a concern - it is clear that tokenised solutions are opening new avenues for access and growth. A changing landscape, a broader horizon At the mid-point of the decade, the private markets landscape is evolving rapidly. Investor demands are shifting, structural innovations are accelerating and technology is reshaping access in unprecedented ways. Asset managers are no longer serving a single class of institutional investors; they are building strategies that appeal to a far more diverse and globally distributed investor base. In parallel, regulators and fund domiciles are rethinking how they support the needs of modern fund structures - balancing innovation with oversight, and access with protection. These dynamics are enabling new partnerships between managers and investors, fostering more inclusive growth in alternatives. For asset managers, family offices and private investors alike, this new era presents not only challenges but a remarkable opportunity. The next chapter in private markets will be defined by those who embrace diversification, adapt to new technologies, and stay agile in a sector where the rules are still being written. An Kelles is Director – GCC, Jersey Finance. Elliot Refson is Head of Funds, Jersey Finance.
