What family offices really want when they invest in a fund

Family offices are relevant to emerging and mid-sized managers because they are already active in private markets and, in many cases, continue to increase exposure, with alternatives now representing an average of 42% of family office portfolios.

What makes this capital attractive is not only its long-term orientation, but also its flexibility.

Family offices can often move with greater conviction than larger institutions.

At the same time, in many family offices, the people evaluating a fund commitment are closely connected to the family’s capital and legacy, and principals often remain directly involved in investment decisions.

More than three-quarters of family offices have principals who are moderately to extremely involved in managing operations, strategy, asset allocation, and investment decisions.

Alignment of interests has become a central filter through which trust in a fund manager is assessed and a crucial consideration when evaluating a fund. Many family offices want clear evidence that the GP’s incentives, concentration discipline, and risk tolerance are genuinely compatible with their own. They may accept illiquidity and patience, but usually not ambiguity around risks and how decisions are made.

Co-investment has become particularly revealing in this context. Family offices often want access to opportunity, but not always through a rigid, one-size-fits-all format. Co-investment can be attractive because it offers greater transparency, stronger alignment and more direct participation in value creation. At the same time, many family offices face staffing and technical resource constraints, which can limit how much they are able to execute alone. That helps explain why managers who can offer thoughtful co-investment access, supported by clear processes and institutional discipline, may stand out more than those offering a closed proposition with little flexibility.

A fund that can meet the personalised expectations of a family office with clear governance, documented decision-making and structured reporting is easier to trust. When the goal is a long-term steady approach and focus on generational wealth preservation, trust becomes part of the investment case itself.