Prequin’s APAC family office report 2023

Prequin's report suggests a change in the investment allocation towards alternative assets amidst a challenging macro environment. Here’s our summary:

Around 63% of individuals perceive a decline in the performance of the real estate sector, while 46% hold a similar perspective towards private equity. Conversely, 64% anticipate better returns from private debt in the following 12 months. Given this sentiment, many are adopting a more cautious approach towards private equity and venture capital, aiming for lower entry valuations. Hedge funds and private debt are regarded as viable diversifiers for investment portfolios.

Notably, younger generations are increasingly prioritizing environmental, social, and governance (ESG) factors, as well as impact investing. Surprisingly, only 37% of family offices in the APAC region currently possess an ESG investment policy. The next generation is advocating for sustainable investments, particularly in sectors related to clean energy. Aligning investments with family values and legacy is considered vital, along with favoring sectors aligned with the source of family wealth.

Overall, the main key takeaway is this: APAC family offices constantly evolve investment strategies to manage risks while seizing new opportunities. Younger generation is making an impact on ESG focus, digital assets.