Unlocking New Opportunities for Family Investors Through Private Funds

Direct investments are often the first point of entry into private investments (PI) for wealthy families. In building out their direct portfolios, many families invest exclusively in a particular region, industry, or business sector. Similarly, entrepreneurial families with highly cash-generative operating businesses—or those who have recently sold a business—may have portfolios that are narrower in scope. But for investors whose goal is to maximize long-term returns, direct investments should always be considered relative to other growth opportunities available in the market. Enterprising families seeking more comprehensive private allocations can consider building a PI fund program to serve as a pathway to a multitude of new opportunities. Understanding the potential advantages and challenges of PI fund programs can help family investors consider whether an expansion of their private allocations is right for them.

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