Media Coverage
Source: Barron's
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Meyer
05.27.26
Family offices are opting to channel more capital directly into companies rather than investing through private equity and other private-market funds. The benefits include more transparency into the companies they invest in, and sometimes, more control. They also avoid the high fees charged by private-equity firms, typically a 2% annual management fee on assets and 20% of profits above an agreed-upon threshold.
Increasingly, these families are gaining direct access to deals through nimbler independent wealth management firms and RIAs, Joshua Becker, co-leader of Pillsbury’s Private Client & Family Office practice, told Barron’s.
As family office wealth has grown, a number of registered investment advisors and smaller wealth management firms that make investments on their own balance sheets are enabling family offices to invest alongside them, Becker said.
“As a result, you have family offices that are suddenly getting these deals that historically you would have gained access through private-equity funds now coming through these investment boutiques,” he noted.
Becker added family offices are most interested in investing in the materials space, and specifically in rare earths mining and related infrastructure. Unlike other sectors, however, most families interested in investing in rare earths don’t have expertise in mining. But they know these minerals are critical to advancing technology, so they are looking for guidance from other families or outside advisors.
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